US states with no sales tax
If your business operates from one of the four U.S. states without a sales tax, and you don’t have sales tax nexus in any other states, sales tax might not be a concern for you at all. As many other online sellers would envy, “You’re lucky!”
The five states that don’t have a state sales tax:
- Alaska*
- Delaware
- Montana
- New Hampshire
- Oregon
Alaska has enacted legislation enabling local jurisdictions to opt for e-commerce businesses with economic nexus to collect sales tax. You can access a list of local jurisdictions in Alaska that mandate sellers with economic nexus to collect tax here.
If you live and operate your business in one of these states, you don’t need to concern yourself with collecting and remitting sales tax. Even if you unexpectedly establish nexus in these states, you likely won’t have to manage taxes there either.
However, there’s a caveat (there almost always is with sales tax!). Certain local areas within these states may have the authority to levy a sales tax. Although it’s less common for you to be responsible for these local sales taxes, it’s advisable to verify with the state’s taxing authority whenever you establish nexus in that state.
For further insights, explore the Startxpress Help Center and Blog. If you have questions or need support, reach out anytime at support@startxpress.io!
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