5 sales-tax-free states are perfect places to enjoy National Ice Cream Day

July 17, 2016

Happy National Ice Cream Day! Yep, it’s a real holiday, celebrated each year on the third Sunday in July as part of National Ice Cream Month.

So many ways to enjoy ice cream on National Ice Cream Day and any/every day.

The yummy dairy product day and month were so designated in 1984 by a proclamation from then President Ronald Reagan.

Like we, or me anyway, need an official sanction to dive into a pint or half-gallon or gallon of our favorite frozen treat.

For most of us, when we buy our ice cream at our local grocery store, we don’t pay sales tax on it or any of the other food items in our cart. Some states that do tax groceries do so at a lower tax rate. Yes, it’s complicated, as I noted in an earlier post warning that if you’re hungry, you better also have an appetite for taxes.

If you live in one of the five states with no statewide sales tax, though, it’s easier.

So where are those sales-tax-free states? Spread across the country, from Alaska, Montana and Oregon out west to New Hampshire and Delaware on the eastern side of the United States.

Here’s the scoop on their no sales tax stances.

ALASKA is the only state that doesn’t collect any personal income tax or a statewide sales tax. However, that could soon change. Alaska’s governor, having been rebuffed on his proposed income tax, is now pushing for a 3 percent state sales tax.

The added revenue, say tax advocates, is necessary to help ease Alaska’s dire financial situation, which depends largely on oil prices and is struggling along with that industry. Local Alaska jurisdictions, however, are allowed to levy their own sales taxes. That might make it somewhat easier for lawmakers to accept a statewide sales tax.

NEW HAMPSHIRE follows through on its state motto “Live Free or Die” when it comes to taxes. On the income side, it only taxes dividend and interest earnings and it has no statewide or local sales taxes.

But beware, visitors, because the Granite State does add a 9 percent sales tax to the price of your hotel room and rental cars, as well as to restaurant meals. Since that ice cream sundae you get for dessert when you eat out is taxed, you might want to wait and make yourself one when you get home.

MONTANA has no sales tax, but certain communities with tourist-popular resort activities (think skiing, hunting and fishing) are allowed to add a local-option sale tax of up to 3 percent.

Like the meals-lodging-rental car levy in New Hampshire, the Montana sales tax burden is born largely by folks who don’t live there, always a smart move for elected officials.

DELAWARE often is referred to as the United States’ tax haven state because of its incorporation rules. On the individual tax side, the First State doesn’t collect a sales tax from consumers, but is does levy a gross receipts tax on businesses. That corporate tax, say those who oppose it, generally is baked into production costs, meaning that consumers essentially pay a hidden sales tax.

OREGON doesn’t collect a statewide sales tax, but some Beaver State residents are worried that a November ballot initiative could effectively create one.

If voters approve Initiative Petition 28 (IP 28), Oregon would establish a new gross receipts tax of 2.5 percent on sales by businesses in excess of $25 million. If you read about Delaware in the previous paragraph, you know what’s coming.

Opponents of IP28 say that if it passes, Oregon businesses will increase their prices to cover the extra taxes they owe and to pay the higher prices they pay to suppliers who also will face the new tax.

UPDATE: IP28, which appeared as Measure 97 on Oregon’s 2016 ballots, failed. Slightly more than 59 percent of voters chose to keep the state’s existing corporate tax structure.

If you don’t live in one of these states, check out places that are offering free scoops and cones this National Ice Cream Day.

Personally, I don’t worry about taxes when it comes to ice cream this or any day. I love it so much that I’ll buy ice cream on all 365 days, 366 in Leap Years, tax or no tax. It’s worth it!

You also might find these items of interest:

Share:

The More Tax Posts tab at the top of this page will take you to, well, more tax posts. You also can search below for a tax topic. 

Latest Posts
6 tax moves to consider this June

June 3, 2026

Definitely take a break this June. But taxes don’t take vacations. So, you also should…

Read More
Tax Season 2026 Continues!

We made it. Tax Day 2025 is finally over. For most of us. When the filing season started on Jan. 26, millions who were expecting refunds filed immediately. Most of us got our returns to the Internal Revenue Service by April 15. But plenty of taxpayers also got extensions. They are looking at an Oct. 15 filing deadline.

Those procrastinating filers aren’t a problem. In fact, the IRS appreciates taxpayers who take time to fill out their 1040 forms correctly. It also is grateful that tax submissions are spread out a bit, especially now that the IRS is a leaner agency. Processing returns is easier when they arrive throughout the year instead of in massive bunches.

But enough about Uncle Sam’s tax collection issues. The focus now is on all y’all who filed for extensions, giving you another six months to complete your return. Since your new mid-October due date will be here before you know it, let’s get started now on meeting it.

The ol’ blog is here to help you finish up your extended Form 1040. You can start with January’s tax tips page, which has links to the rest of the year’s tips by-month collections. You also can peruse various tax categories for more tailored advice by clicking on the More Tax Posts drop-down menu at the top of this (and every) page.

And to make sure you don’t miss your new filing deadline, the count-down clock below will let you know just how much time you to file by Oct. 15. At the latest.e. (Note: I’m in the Central Time Zone, so adjust accordingly for where you live.)

Comments
  • E.S AKSHAY

    i love ice creams…………………………..

Comments are closed.