Sales Tax Fundamentals
Get up to speed on the basics of sales tax
U.S. States with No Sales Tax
byMay 24, 2018
Updated August 2020 – Alaska now allows local areas to levy a sales tax
Here at TaxJar, we live and breathe helping online sellers handle sales tax compliance. But a few lucky online sellers don’t have to worry about sales tax. If you live and run your business out of the five U.S. states that do not have a sales tax – and, if you don’t have sales tax nexus in any other states – then sales tax may not be on your radar at all. As most other online sellers would likely say, “Lucky you!”
The four states that don’t have a sales tax:
If you live and operate your business in one of these states, you don’t have to worry about collecting and remitting sales tax. Or, if you find that you suddenly have nexus in these states, don’t worry. It’s unlikely that you have to deal with tax here, too.
Of course, there’s one caveat. (With sales tax, there’s almost always a caveat!) Some local areas within these states may be able to charge a sales tax. While it’s less likely that you are responsible for one of these local sales taxes, you should always check with any state’s taxing authority when you find you have nexus in that state.
Don’t want to keep up with which states do and don’t have sales tax? Let TaxJar handle your sales tax remittance. Learn more here!