Sign Me Up: These 5 States Have No Sales Tax
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Do you hate paying sales tax every time you buy something? Well, five U.S. states have no sales tax on purchases, as of 2017. The obvious benefit to living in a sales-tax-free state is that you'll pay less money out-of-pocket for each purchase. Plus, sales taxes are often a regressive form of taxation, disproportionately affecting lower-income households that tend to spend a greater percentage of their income than affluent households.
On the other hand, there are often drawbacks to living in states without a sales tax, since state funds need to come from somewhere. This is also the case in most U.S. states with no income taxes. As you'll see, many states without sales taxes offset this by charging higher income, estate, or property taxes. Others tax Social Security benefits or impose high excise taxes on purchases like gasoline and alcohol. However, others get their revenue from other sources and are truly tax-friendly places.
Source: Fool.com
