Locations matters!!! Yes, it not only matters for eternal peace of soul but finances too. Hefty state taxes could ruin the financial life. But the good news is that there are some United States’ States Without Sales Tax. Curious to know about tax-free states rise?
Sales Tax is a universal term used while discussing taxes and new tax implementations in the country. Let understand what exactly is Sales tax and who is liable to pay.
Sales Tax is the tax imposed on the lease or sale of goods and services. This tax is not bidden with the Federal regulations of the States. The buyer of the good or service is liable to pay the tax at the time of purchase. The State level authorities calculate the rate of the applicable tax.
Formula to calculate the Sales Tax: Multiple the Market price with the applicable state tax rate of the particular state. For example:
Let the purchase price is twelve dollars and the state has levied 5.5% sales tax then you are liable to pay $12.66.
The rate of state tax varies from one state to another. New York has 4.5% state tax and other additional taxes and the Metropolitan Commuter Transportation District tax make it 8.875%.
There are five states in the U.S. where the state tax is equivalent to 0.000%. But these states are subjected to other taxes applicable at the local level. Here is a list of States With No Sales Tax:
Good news for Alaska residents as there is no sales tax but local government is empowered to impose taxes on some services and goods up to 7.5%. Even the state has no burden for the income tax also. However, the local authorities have levied taxes on motels, hotels, fuel transfer tax, license fees, tobacco and liquor tax, raw fish taxes and gaming tax. Fairbanks and Anchorage do not have sale tax while Juneau has a state tax of 5%.
Another state with no sales tax in the U.S. is Delaware. This state is a state tax-free but subjected to other taxes. The state is also free from personal property tax but real estate is subjected to a certain kind of taxes. The business-related taxes vary from 0.096% to 1.92%. The heavy taxes imposed on items like cigarettes, alcohol, and tobacco.
The percent of state tax is 0 here, but there are some local taxes on the tourist’s destinations like Big Sky, Whitefish, West Yellowstone and Red Lodge ranging up to 3%. No Sales Tax States‘ Montana Known as the land of shiny mountains, it is the fourth largest in the area factor.
Surrounded by Massachusetts from the south, province of Quebec from the northern boundaries, Vermont to the west while Maine and the Atlantic Ocean covered it from the east. The 10th least populous U.S. state is free from the state tax and property tax apart from taxes on dividend and interest. This tax-free state is best from the environment point of view as they charged 10% for cutting the timber wood.
The last state in the list of state-tax free is Oregon. Here citizens can enjoy this lavish freedom; however, certain other taxes are touching the upper ceiling. The state relies on the property and income tax for the revenue. As a fact of the matter is that Oregon is contributing 5th highest personal income tax in the whole United States.
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Do you find your state in the list of state free tax? State tax is subject to change with the change in the rule. Find all finance solution of your financial worries with the FinanceShed.