Forty-five states and the District of Columbia impose a statewide sales tax. Five states do not: Alaska, Delaware, Montana, New Hampshire, and Oregon. So the short answer to how many U.S. states have a sales tax is 45, but the practical picture is messier, because local taxes, out-of-state purchases, and use tax rules can add a charge even where the state itself collects nothing.
The 45 States That Charge a Statewide Sales Tax
State-level rates run from a low of 2.9% in Colorado to a high of 7.25% in California, with most states between 4% and 7%. Here is every state-level rate as of 2026:
- 2.9%: Colorado
- 4.0%: Alabama, Georgia, Hawaii, New York, Wyoming
- 4.2%: South Dakota
- 4.225%: Missouri
- 4.5%: Oklahoma
- 4.75%: North Carolina
- 4.875%: New Mexico
- 5.0%: Louisiana, North Dakota, Wisconsin
- 5.3%: Virginia
- 5.5%: Maine, Nebraska
- 5.6%: Arizona
- 5.75%: Ohio
- 6.0%: District of Columbia, Florida, Idaho, Iowa, Kentucky, Maryland, Michigan, Pennsylvania, South Carolina, Vermont, West Virginia
- 6.1%: Utah
- 6.25%: Illinois, Massachusetts, Texas
- 6.35%: Connecticut
- 6.5%: Arkansas, Kansas, Washington
- 6.625%: New Jersey
- 6.85%: Nevada
- 6.875%: Minnesota
- 7.0%: Indiana, Mississippi, Rhode Island, Tennessee
- 7.25%: California
Those are state-level figures. Thirty-eight of these states also let cities, counties, or other local jurisdictions add their own sales taxes on top. In parts of Arkansas, Louisiana, and Alabama, the combined state-plus-local rate can exceed 11%. What actually appears on a receipt depends on the exact location of the sale, not just the state.1Tax Foundation. State and Local Sales Tax Rates, 2026
The Five States Without a Statewide Sales Tax
Alaska, Delaware, Montana, New Hampshire, and Oregon charge no general statewide sales tax. Each fills the revenue gap differently.1Tax Foundation. State and Local Sales Tax Rates, 2026
- Alaska leans heavily on severance taxes from oil and gas production. It has no state income tax either, making it one of the lightest-taxed states for residents.
- Delaware imposes a gross receipts tax on businesses instead. Because the tax hits the seller’s revenue rather than the buyer’s purchase price, consumers never see a line-item charge at the register.
- Montana relies primarily on income and property taxes. A constitutional provision caps any future general sales tax at 4% and requires voter approval before the legislature could enact one.
- New Hampshire funds itself through property taxes and targeted levies on meals, hotel rooms, and motor vehicle rentals rather than broad retail taxation.
- Oregon depends on personal and corporate income taxes. In 2020, the state added a Corporate Activity Tax on businesses with more than $1 million in Oregon commercial activity, charged at $250 plus 0.57% of revenue above that threshold. The tax falls on businesses, not consumers at the register.
Several of these states have built high barriers against ever adopting a general sales tax. Montana’s constitutional cap is one. Oregon voters have rejected statewide sales tax proposals multiple times at the ballot box.
When “No Sales Tax” Still Means You Pay Something
The five-state list only covers statewide taxation. Local taxes are a separate story.
Alaska is the clearest example. Municipalities and boroughs can impose their own local sales taxes with voter approval, and local rates run from roughly 1% up to 7.5%. Because there is no state framework layered on top, each community sets its own rules about what is taxable and what is exempt. A shopper in Juneau, which levies a 5% local tax, has a very different experience from someone buying the same item in Anchorage, which charges none.2Department of Commerce, Community, and Economic Development. Alaska Sales Tax Information
Montana has a narrower exception. Certain resort communities can levy a local option tax of up to 3% on lodging, restaurants, bars, and destination recreational facilities. It doesn’t apply to general retail merchandise, so a grocery run isn’t affected, but visitors to ski towns and tourist areas will see it on dining and hotel bills.
Delaware, New Hampshire, and Oregon have no mechanism for local sales taxes. In those three, the absence of a sales tax extends all the way down to the municipal level.
How Online Purchases Are Taxed Today
Before 2018, a retailer generally only had to collect sales tax in states where it kept a physical presence, such as a store, warehouse, or office. The Supreme Court’s 2018 decision in South Dakota v. Wayfair changed that. States can now require out-of-state sellers to collect and remit sales tax based purely on their volume of sales into the state, with no physical footprint required.3Supreme Court of the United States. South Dakota v. Wayfair, Inc., et al.
The South Dakota law at issue set the threshold at $100,000 in annual sales or 200 separate transactions delivered into the state. Most sales-tax states adopted similar economic nexus rules, with variations. Some use only a dollar threshold, others combine dollars and transaction counts, and a few set the bar higher. California requires $500,000 in sales before collection kicks in. Alabama’s threshold sits at $250,000.
Economic nexus rules left a gap for small third-party sellers on platforms like Amazon, eBay, and Etsy, who often had no idea they had crossed a threshold in a given state. Nearly all sales-tax states have since passed marketplace facilitator laws, which shift the collection duty from the individual seller to the platform itself. If you sell handmade candles through an online marketplace, the platform handles sales tax on those orders. Sales through your own website or at craft fairs remain your responsibility.
Use Tax on Purchases From Another State
Every state that charges a sales tax also imposes a companion use tax at the same rate. Use tax applies when you buy something without paying sales tax and then use, store, or consume it in your home state. The classic case is a resident of a sales-tax state who buys online from a seller that doesn’t collect tax, or drives across the border into a no-tax state to make a purchase.
After Wayfair and the spread of marketplace facilitator laws, most large retailers and platforms collect the tax automatically, and the practical impact on everyday shopping has shrunk. Use tax still matters for private-party transactions, purchases from small sellers who haven’t hit a nexus threshold, and big-ticket items bought out of state. Buying a car in Oregon and registering it back home in Washington, for example, triggers the use tax at the point of registration. States typically collect use tax through the annual income tax return, on a separate use tax form, or at titling and registration for vehicles.
What’s Usually Exempt Even in Sales-Tax States
The 45 sales-tax states don’t tax everything on the shelf. The categories most often carved out:
Groceries. Most sales-tax states exempt unprepared grocery food. As of 2026, only about eight still tax groceries at the full state rate or at a reduced rate. Arkansas recently eliminated its state-level grocery tax, though local sales taxes on food still apply there. Prepared food and restaurant meals are almost universally taxed.
Prescription drugs and medical devices. Prescription medications are exempt in nearly every sales-tax state. Many states extend the exemption to prosthetics, wheelchairs, and oxygen equipment. Over-the-counter medications get less consistent treatment.
Clothing. Most states tax clothing at the standard rate. Minnesota, New Jersey, Pennsylvania, and Vermont exempt all clothing year-round. Several others exempt clothing below a price cap: New York under $110, Massachusetts under $175, and Rhode Island under $250.4Tax Foundation. Map: State Sales Taxes and Clothing Exemptions
Services. Sales tax was originally designed for goods, and most states still exempt the majority of services. Legal advice, accounting, haircuts, and home repairs go untaxed in most places, though a small number of states tax services broadly.
Around 20 states also offer temporary sales tax holidays, typically in late summer before the school year, when items like school supplies and clothing can be bought tax-free up to a per-item price cap. Dates and eligible items change from year to year, so checking your state’s revenue department before shopping is the only way to know what qualifies.