Which state has no car sales tax?
States Without Sales Tax Avoiding sales tax can be incredibly beneficial to your car purchase, but it’s only possible in some states. Alaska, Montana, Oregon, Delaware, and New Hampshire have no statewide sales tax. You’ll note that these states also generally correspond to the states with the lowest unexpected fees. Who Pays Sales Tax on a Private Car Sale? You must pay vehicle sales tax when you buy a used car if you live in a state with car tax due. However, you do not pay that tax to the car dealer or individual selling the car.