US Address GeneratorWhat Are Tax-Free States?
US sales tax applies to most retail and online purchases, with rates varying by state up to around 10%. Tax-free states are US states that do not levy a state-level sales tax. There are currently 5 such states:
- Alaska — some cities still have local sales tax, so caution is needed
- Delaware — fully exempt from state and local sales tax, often the top choice
- Montana — some resort communities charge special fees on lodging, etc.
- New Hampshire — special taxes apply to dining, lodging, and car rentals
- Oregon — some goods or local programs may still carry special fees
Why Do People Use Tax-Free State Addresses?
A common scenario is choosing a tax-free state as the billing address when signing up for services, to avoid extra sales tax:
- Apple Store / App Store in-app purchases, Apple Music / TV+ / iCloud subscriptions
- Subscription forms for AI tools like ChatGPT Plus and Claude
- Steam / Epic Games / PlayStation / Xbox top-up billing addresses
- Streaming subscriptions like Spotify / Netflix / Disney+
Note: test addresses cannot serve as tax-exemption proof — real transactions should still use your real address; actual tax rules follow the merchant's and payment platform's implementation.
Comparing the 5 Tax-Free States
| Tax-Free State | State Sales Tax | Notes |
|---|---|---|
| Delaware (DE) | None | No state or local sales tax — the most common first choice |
| Oregon (OR) | None | Some goods, services, or local programs may still carry special fees |
| New Hampshire (NH) | None | An 8.5% special tax applies to dining, lodging, and car rentals |
| Montana (MT) | None | Some resort communities charge up to 3% local tax on lodging, etc. |
| Alaska (AK) | None (state level) | Some cities/boroughs still levy local sales tax — verify specifics |