Which 5 states within the U.S. have no sales tax?
The 5 states with no sales tax are: Delaware, Montana, Oregon, Alaska and New Hampshire. While this is 10% of U.S. states imposing no sales tax, a much smaller percentage of the population lives in one of these states. The percentage of people in each state is no more than 2.5%. It is not generally known that U.S. citizens actually pay more in sales taxes than they do in state income taxes.
Specifically, in New Hampshire, it has no general sales tax or income tax, instead it relies upon property taxes to obtain revenue. In Delaware, it relies on the lack of a sales tax to draw shoppers from bordering states. Delaware's income tax is ranked very high, and residents pay more in property taxes to help meet state and local tax burdens. Next, focusing on Montana, its tax receipts come from income taxes and severance taxes (the money corporations pay for extracting natural resources). Like Montana, Alaska is a major beneficiary of the oil and gas industry. Alaska and New Hampshire are the only two states in the whole country with neither a sales tax nor an income tax. Last on the list is Oregon, by far the most populous of these five states. Unlike the other states that have been noted, Oregon has a high tax burden to meet. It uses income taxes more than any other state in the country. Voters have rejected a sales tax nine times, but state politicians are hoping to reform the tax system.
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