Sales tax may not seem like a big deal, but when making big purchases this is a huge add-on that should be accounted for. Going through each month’s bills, one may be surprised how much they spend on sales tax.
Example
If sales tax rate is 8% and you spend $3,000 without sales tax.
(3000 * 08) = 240
$240 would be spent on taxes each month.
Five no sales tax states
- Alaska
- Delaware
- Montana
- New Hampshire
- Oregon
This does not mean that the cities or counties do not charge sales tax. For example, Alaska charges zero percent sales tax, but the counties and cities can charge up to 7.5%.
The other four have an average sales tax rate accounting for local and state taxes of zero. Each little amount saved through time can help build for later in life. The average sales tax rate at the state level is 5.1%, which can make a huge difference.
Questions about what states have no income tax? read No Income Tax States
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