States With No Sales Tax: A Look At The Lowest Tax States
Taxes, taxes, taxes. Everyone hates them. But, did you know that there are some states in the US that don’t have a sales tax? That’s right, there are some states where you can buy products and services without being charged an extra percentage. In this article, we’re taking a look at the states with no sales tax and what makes them so special. Read on to find out!
What is a Sales Tax?
Before we dive into the states that don’t charge a sales tax, let’s take a moment to pause and understand what a sales tax is. A sales tax is a type of tax that is charged on the purchase of products and services. It is usually a percentage of the price of the item and is collected by the seller. It is then used to pay for government services such as education, roads, police, and more.
States with No Sales Tax
Now that we have a better understanding of sales taxes, let’s take a look at the states that don’t have a sales tax. There are five states in the US that don’t have a sales tax. These states are Alaska, Delaware, Montana, New Hampshire, and Oregon. These states are known as the “no sales tax states” because they don’t charge a sales tax on the purchase of items.
Alaska
The state of Alaska is known for its cold weather, stunning landscapes, and, of course, its no sales tax policy. Alaska is the only state in the US that doesn’t have a sales tax. This means that when you shop in Alaska, you won’t have to pay a sales tax. While Alaska does have an income tax, it is relatively low (2.7%) and there is no sales tax.
Delaware
Delaware is a small state on the east coast that is known for being the home of many businesses. It is also the second state in the US with no sales tax. Delaware does have an income tax and property tax but it does not have a sales tax. This makes it a great place for businesses to locate as there is no extra cost associated with the purchase of items.
Montana
Montana is a state in the western US that is known for its stunning nature and low taxes. Montana is the third state in the US with no sales tax. While there is an income tax, there is no sales tax. This makes Montana an ideal place to start a business as you won’t have to worry about an extra tax when you sell products or services.
New Hampshire
New Hampshire is a state on the east coast that is known for its low taxes. It is the fourth state in the US with no sales tax. New Hampshire does have an income tax and property tax but it does not have a sales tax. This makes New Hampshire an attractive place for businesses to locate as there is no extra cost associated with the purchase of items.
Oregon
Oregon is a state in the western US that is known for its beautiful nature and low taxes. It is the fifth state in the US with no sales tax. While there is an income tax, there is no sales tax. This makes Oregon an attractive place for businesses to locate as there is no extra cost associated with the purchase of items.
The Benefits of No Sales Tax
It’s easy to see why no sales tax states are attractive to businesses and individuals. No sales tax means that businesses can lower their prices and individuals can save money on their purchases. Additionally, no sales tax states have an overall lower tax burden, which can lead to economic growth.
Conclusion
There are five states in the US that don’t have a sales tax. These states are Alaska, Delaware, Montana, New Hampshire, and Oregon. These states are attractive to businesses and individuals because they don’t have a sales tax, which means that businesses can lower their prices and individuals can save money on their purchases. No sales tax also means that these states have an overall lower tax burden, which can lead to economic growth.
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