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Kiplinger
Kiplinger
Business
Gabriella Cruz-Martínez

Five States Without Sales Tax in 2025: What to Know

Image shows a shopping tag labeled tax free. .

As if prices for goods and services weren’t high enough, most state and local governments also impose a sales tax.

States and localities use sales taxes as a crucial revenue source, bolstering general funds for key government initiatives. These include public education, police and fire services, parks, and medical facilities. Together, state and local sales taxes can range anywhere from 0% to as high as 10.11%, according to data from the Tax Foundation.

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