Delaware and Oregon are the "complete" tax-free states — rules that fit on one page. The remaining three, Montana (MT), New Hampshire (NH), and Alaska (AK), also have a 0% state rate, but each carries a footnote. Know where the footnotes are and every pitfall is avoidable.
| State | State rate | Footnote | Impact on testing |
|---|---|---|---|
| Montana MT | 0% | Resort districts may levy up to 3% | None, if you pick ordinary cities |
| New Hampshire NH | 0% | 8.5% Meals & Rooms Tax | None for goods; switch states for hotels/restaurants |
| Alaska AK | 0% | Boroughs/cities may levy local sales tax | Verify town by town — the highest-effort option |
Montana's resort tax only covers limited resort boundaries — think Big Sky or Whitefish. Ordinary cities like Billings, Missoula, Great Falls, and Bozeman are unaffected. ZIPs run 59000–59999 and area code 406 covers the entire state — like Delaware, one code for everything, so the phone always agrees with the address.
NH's exemption covers general goods; lodging and meals are taxed at 8.5%. The decision rule is simply what kind of form you are testing: e-commerce checkout, subscriptions, software signups — fine; hotel bookings, food delivery — switch to Delaware or Oregon. Cities: Manchester or Nashua in the south (Boston-adjacent, highly familiar addresses). ZIPs start with 03, area code 603 statewide.
AK has the most fragmented rules of the three: the state rate is 0%, but each borough or city decides on its own local sales tax — Anchorage has none, Juneau has none, some small towns do. Unless the scenario explicitly requires Alaska, its maintenance cost exceeds its value. If you must: Anchorage (the largest city, no local sales tax), ZIPs starting with 995, area code 907 statewide.
All three are one click away in the tax-free states generator, with cities pre-filtered for "ordinary and safe".
The state rate is 0%. Resort districts may add up to 3%, but ordinary cities like Billings or Missoula are unaffected — pick a normal city and Montana behaves like a complete tax-free state.
Product and checkout forms. General goods are exempt; hotels and restaurants carry the 8.5% Meals & Rooms Tax, so booking or delivery flows should use DE or OR.
Yes, with care: Anchorage is the largest city and has no local sales tax. Beyond Anchorage you would need to verify each town's rules, which rarely pays off for test data.
Alaska, unless the scenario genuinely requires it — municipal rules vary the most, so maintenance cost exceeds its value.