I've never considered moving to Delaware, Montana, New Hampshire or Oregon as a way to avoid paying local or state sales taxes, but I see how it can be tempting — especially to retirees looking to save money.
Other than some local resort areas in Montana, those four states don't have local or state sales taxes, giving residents and visitors plenty of reasons to shop there.
Some states make up for low or zero sales taxes with high income taxes. Oregon has no sales tax but high income taxes, while neighboring Washington state has high sales taxes but no income tax. In theory, it could pay off to live and work in Washington state and buy everything in Oregon.
But which states should you avoid for high sales taxes? The Tax Foundation recently put out a mid-year report of state and local sales tax rates, combining the state and average local sales tax rates for each state.
Highest sales taxes in the Bayou
The full list is in the report, but here's the top 10 states for combined local and state sales tax rates, followed by the combined rate: ...continue reading