Does your state have sales tax?

Ravenfreak's Avatar
Ravenfreak · in Economic Roundtable
4 comments 271 readers
Ravenfreak's Avatar
#1

Something I learned today by watching a Youtube video unrelated to financial topics is that there's a few states that don't have sales tax. I don't live in any of the states that don't have sales tax though. The states are Oregon, Alaska, Delaware, Montana, and New Hampshire. I've thought about moving to Oregon in the past too, but I'm sure the cost of living is way too high up there. Heck I even thought about wanting to live in Alaska as a kid lol. I'm glad Alaska doesn't have sales tax because it's already expensive to import goods into the state. Do you believe that other states should also eliminate the sales tax?

DavidB's Avatar
#2

I live close to Delaware and sometimes I'll make the drive over to buy big items to save money. 😅

MoneyMan's Avatar
#3

I've been to Oregon and it is nice seeing a price and knowing that's the exact price you will pay. They make up for it with higher taxes elsewhere though.

There are people advocating for a "FairTax" which creates a federal sales tax that is much higher than traditional taxes but it applies to everyone and would eliminate the need for income tax, payroll tax, and the IRS.

The FairTax is a national sales tax that treats every person equally and allows American businesses to thrive, while generating the same tax revenue as the current four-million-word-plus tax code. Under the FairTax, every person living in the United States pays a sales tax on purchases of new goods and services, excluding necessities due to the prebate. The FairTax rate after necessities is 23% compared to combining the 15% income tax bracket with the 7.65% of employee payroll taxes under the current system -- both of which will be eliminated!

DavidB's Avatar
#4

On Jun 8, 2026, MoneyMan said:

I've been to Oregon and it is nice seeing a price and knowing that's the exact price you will pay. They make up for it with higher taxes elsewhere though.

There are people advocating for a "FairTax" which creates a federal sales tax that is much higher than traditional taxes but it applies to everyone and would eliminate the need for income tax, payroll tax, and the IRS.

https://fairtax.org/about/how-fairtax-works

Whoa! That's crazy but at the same time, sounds doable and more fair. If you want less tax you simply don't have to consume as much but you keep all of your earnings.

Prospector49's Avatar
#5

On Jun 17, 2026, DavidB said:

Whoa! That's crazy but at the same time, sounds doable and more fair. If you want less tax you simply don't have to consume as much but you keep all of your earnings.

Anything that gets rid of the IRS is a-okay with me! 🤣

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