City of Ashland, Oregon. Alaska Department of Revenue -- Tax Division. Throughout the United States, income and sales taxes vary dramatically from state to state. Accessed Jan. 22, 2020. However, Delaware's cost of living is 0.4% higher than the national average. Oregon Legislature. But, what does it mean to be exempt from sales tax, and which states are sales-tax-free? Sales Tax: 6% state levy. 3  Excise tax, sometimes colloquially coined "sin tax," are taxes on products like cigarettes or alcohol. No local sales tax is charged either. Accessed Jan. 22, 2020. Additionally, its average personal income per capita is on the lower side - at around $42,917, according to USA Today. Some employees can constitute a nexus in a state if they work primarily out of that state - like Amazon Each state has control over its own base sales tax. Property taxes are higher than average, with an annual assessment of over $2,625 being charged on a home valued at $247,000. Consumers don’t have to account for this tax, but the sellers of the goods or services do. Accessed Jan. 22, 2020. With an average cost of living at around 0.8% below the national average, Oregon definitely saves its residents some cash. Though Delaware doesn’t impose a state sales tax, it does require certain businesses to pay a gross receipts tax. This can make a huge difference in how much you pay for retail items, since rates can range as high as 7.25% in California, according to research from Tax Foundation. According to The Washington Post in 2014, other states that had lower sales tax include Hawaii (4.35% sales tax), Wisconsin (5.43% sales tax), Wyoming (5.49% sales tax), and Maine (5.50% sales tax). This table is for reference only and is subject to change as states adjust their rules. Alaska Department of Revenue -- Tax Division. While there is no sales tax in Alaska, local governments are endowed with the ability to impose taxes on certain goods and services. These states are Delaware, Montana, New Hampshire, and Oregon. 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. I live in a state (Montana) that has no sales tax. Five states don’t have a general sales tax: Alaska, Delaware, Montana, New Hampshire, and Oregon (the NOMAD states). "Cigarette Tax Overview." A measure imposing economic nexuswas approved by the Kansas Legislature in March, but Governor Laura Kelly vetoed it on the grounds that other aspects of the bill wo… Sales taxes are typically imposed on retail transactions and certain services. A tax on remote sales is a hard sell in the Sunshine State, but it could resurface. A timber tax is imposed at the time of cutting at 10% the value of the wood, excluding cutting for personal use. New Hampshire's tax treatment is also favorable in that its income tax is only subject to interest income and dividend income. Municipalities in Oregon may impose sales taxes on certain goods. Montana Department of Revenue. "Corporate Income Tax FAQs." As of 1/1/2021. Florida, for example, levies a 6 percent sales tax and the average locality tacks on 1.05 percent, according to the Tax Foundation, for a combined average of 7.05 percent. Accessed Jan. 22, 2020. Accessed Jan. 22, 2020. Alaska, Delaware, Montana, New Hampshire and Oregon do not impose a state sales tax, but that doesn't necessarily make them the best states for low taxes. To qualify for this tax, a city must have a permanent population of under 5,500; the purpose of this tax is to support infrastructure frequented by tourists. These states are Delaware, Montana, New Hampshire, and Oregon. Accessed Jan. 22, 2020. New Hampshire Department of Revenue. 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