Business owners often find collecting and paying taxes to be a burden, particularly when it comes to state sales tax. Some states require a sales tax license and demand that owners stay up to date on the sales tax rate. Failure to do so can result in hefty fines.

Five states do not have a state sales tax, and they can be remembered using the NOMAD acronym: New Hampshire, Oregon, Montana, Alaska, and Delaware. However, this does not necessarily mean they are entirely tax-free.

Further details about tax rates in these states are available, including information about local municipalities that may impose their own sales taxes.