Work and Shop Tax Free

Many moons ago, I suggested shopping in another state as a way of avoiding sales taxes—I believe it was something like, “Live in Washington, shop in Oregon.”

Why THAT particular combination? Washington State has no income tax, and Oregon has no sales tax. Plus, I’ve had personal experience on the west coast. The only thing I’d avoid here is getting gas in Oregon, because it’s against the law to self-serve your own gas there…in other words, all pumps are full-serve, and you pay the corresponding price.

Anyway, back to the subject at hand. There are other income/sales state combinations that may be beneficial to you. The income tax free states are:

• Alaska
• Washington
• Wyoming
• South Dakota
• Tennessee*
• New Hampshire*
• Texas
• Florida
• Nevada
*dividends and interest taxable

Now for the list of states that impose no sales tax:

• Oregon
• Delaware
• Montana
• Alaska
• New Hampshire

If you live in one of the income tax free states, and next to a sales tax free state, why not take advantage of it? Once a month or so, go over the border and stock up! That’s what I did when I lived in Washington and Texas, although in Texas, I literally went over the border and paid little taxes if any.

This is yet another way of stretching that shopping dollar—when times are good and gas prices low, head over the border and bring back truckloads of food and clothing for your family.

If you’re lucky enough to live in New Hampshire or Alaska, you don’t need to go anywhere except into town, it seems. Neither state imposes income or sales tax.