Which States Don’t Have Sales Tax?
As we know, sales taxes are governed at the state level as opposed to national, and it is logical that there are states which do not have sales tax. Every state handles the sales taxes of its territory, without abiding to the federal laws, and most of the states have sales taxes. But, fortunately, there are 5 amazing states which do not have sales tax at all.
- New Hampshire
However, keep in mind that each of these states have separate regulations for excise and sales taxes. Let’s dive deep into this topic and try to cover each of these states separately.
Even if there are no sales taxes in this state, be ready that the government can charge taxes for providing several services, or selling certain categories of products. Keep in mind that the cost of living in Alaska is also very high; therefore, it is better to consider all the pros and cons before launching your business in this state.
Delaware is one of those states which exempts its residents from paying sales tax. However, if you decide to launch your business in Delaware, be ready that you will probably face gross receipts tax.
There are several tricky points when it comes to sales taxes in Montana. Generally, this state does not have sales tax. However, there are several localities which impose sales tax. Therefore, before starting your business in this state, it is better to consult tax professionals like us at Prestige Auditors.
If you are lucky enough to run your business in New Hampshire, then we are happy to report that there are no sales taxes in this state. Unfortunately, the cost of living in this state is comparably higher than other states and amounts to nearly 5%.
The state of Oregon is also sales tax exempt, plus it has the lowest cost of living. At the same time, this state has low personal income and is 15th among the other states.
Of course, these states do not have sales taxes; however, there are several other aspects which may influence your business negatively. In this way these states make up for the gaps by using other ways: for example, by charging taxes on other aspects or imposing high costs on living.
Of course, in both Commerce and eCommerce businesses, the existence of sales taxes is a crucial aspect. However, as you can see, there are lots of tricky points even in those states which do not have sales tax. In order to avoid serious consequences in the future, we advise you to contact tax professionals from Prestige Auditors first.
By calculating all the pros and cons of running a business in a specific state, we will come up with the best strategy exactly for your unique business. Do not hesitate to contact us and we will guide you how to run a successful business, as well as other services such as conducting Texas entity search, if you are located in that state.