US sales tax is a state (and often local) tax on taxable retail sales. It is not a federal income tax, and it is not the same as the self-employment tax you may pay on a Form 1040. Whether you should collect it depends on three questions: Do you have nexus in the state? Is what you sell taxable there? And have you registered if you are required to collect?
Start with nexus, not with the rate
A state generally cannot require you to collect its sales tax unless you have a sufficient connection — nexus — with that state. Physical presence (an office, employees, or regularly working on site) can create nexus. After the US Supreme Court's 2018 decision in South Dakota v. Wayfair, Inc., states may also impose economic-nexus rules on remote sellers who exceed a state-set threshold of sales or transactions. Those thresholds are set by each state and they change. This page does not list dollar thresholds, because a stale number would be worse than no number. Check the department of revenue in each state where you have customers.
The Streamlined Sales Tax project publishes information for states that participate in a common framework, but not every state is a member, and membership does not replace your own registration decision.
Five states with no statewide sales tax
According to the Tax Foundation's 2026 compilation of state sales tax rates, five states levy no statewide sales tax:
| State | What the Tax Foundation notes (2026) |
|---|---|
| Alaska | No statewide sales tax. Localities may impose local sales taxes. |
| Delaware | No statewide sales tax. |
| Montana | No statewide sales tax. |
| New Hampshire | No statewide sales tax. |
| Oregon | No statewide sales tax. |
“No statewide sales tax” is not the same as “no tax on any transaction.” States may still tax specific activities (for example meals, lodging, or a business gross-receipts tax), and Alaska allows local sales taxes. Confirm the current rule with the state or locality before you omit a tax line.
This page does not publish a 50-state rate table. Combined state and local rates change, and local districts can make a “state average” misleading on a real invoice. Use your state's official rate lookup, or a registered tax engine, for the rate that applies to a given address.
Origin, destination, and services
Some states source a sale to where the seller is based (origin). Others source it to where the customer receives the goods or service (destination). For remote services the sourcing rule is especially important, and it is not uniform. If you work in one state and invoice a client in another, you may need advice on which state's tax, if any, applies.
Goods are more often in the sales-tax base than services, but that is only a starting point. Some states tax specified services — landscaping, cleaning, data processing, and certain digital products come up often — while leaving other professional services untaxed. If you are a landscaper, cleaner, or consultant, read the trade template guide for invoice structure, then verify taxability with the state, not with a blog post.
What to do in practice
- List the states where you have customers or a physical presenceInclude job sites you visit regularly, not only your home address.
- Read each state's nexus and taxability guidanceStart at the department of revenue. If a state participates in Streamlined Sales Tax, their materials can help, but they are not a substitute for registration if you have nexus.
- Register if you are required to collectCollection generally starts only after you are registered and know the correct rate and exemptions.
- Put the tax on the invoice clearlyShow the rate and the tax amount as their own figures, and keep a report of tax collected. In Fjordbill you can set multiple US rates and a taxable flag on each line, then use the sales tax report.
- File and remit on the state's scheduleThe app does not file the return. Your records should match what you remit.
Fjordbill can help you calculate and record the tax. It cannot tell you whether you have nexus, and it is not a sales tax filing service. Sales tax you collect is not income in the usual sense — it is money you hold for the state — so keep it visible in your records and talk to your accountant about how to treat it.
Card payments are reported to you on Form 1099-K at their gross amount, which includes any sales tax you charged. When you reconcile that form at year-end, see 1099-K and 1099-NEC for the same income for how fees, refunds and sales tax fit in.
Sources
- Tax Foundation, 2026 Sales Tax Rates by State (five states with no statewide sales tax; Alaska local taxes)
- Streamlined Sales Tax Governing Board
- South Dakota v. Wayfair, Inc., 585 U.S. 162 (2018), Supreme Court opinion
Reviewed 12 November 2026. Links go to the official or cited source; check the live page if a figure may have been updated since.
Frequently asked questions
Which states have no statewide sales tax?
As of the Tax Foundation's 2026 sales tax tables, five states have no statewide sales tax: Alaska, Delaware, Montana, New Hampshire, and Oregon. Of those, the Tax Foundation notes that only Alaska allows localities to impose local sales taxes. Always confirm with the state, because local or special taxes can still apply.
If I live in a no-sales-tax state, can I ignore sales tax?
Not automatically. Selling to customers in other states can create a collection obligation in those states if you have nexus there. Check each state's department of revenue.
Does Fjordbill file sales tax returns for me?
No. Fjordbill lets you put one or more US sales tax rates on an invoice and mark which lines are taxable, and it can report tax collected. You (or your accountant) still register, file, and remit with the state.
Are freelance services always taxable?
No. Taxability of services varies widely by state. Many professional services are exempt in some states and taxable in others (for example some states tax landscaping or janitorial services). Look up your service in the state's guidance.