Lowest State sales tax
5 states have it right

Where are the lowest state sales taxes? Fortunate residents and travelers to Alaska, Delaware, Montana, New Hampshire and Oregon, do not have to pay state sales tax.

My very frugal bride, is in hog heaven when our travels take us to Oregon or Montana.

Among our bigger purchases in the last 7 or so years have been made at Oregon and Montana Costcos. Among them were a digital camera, laptop and desk computer, outdoor grill and a host of staples.

We go to Oregon every summer, when it's 115 in Phoenix, and coming back we pack the car to the gills with stuff we will use over the next year. Local sales taxes in AZ are 7.8% to 9.3%, that's a big cost break in the eyes of my favorite frugal shopper.

For the person practicing frugal retirement living this is an opportunity to combine perhaps a vacation and a major purchase.

Think for a moment if you know you are going to buy an item that costs $2000, why not save $186 and purchase the item in one of these 5 states? Proper planning is a key to living cheaply.

States with the highest sales taxes

We have listed state with the lowest state sales tax, here are the highest state and local taxes, including city and county (a weighted average): Tennessee (9.4%), Louisiana (8.7%), Washington (8.5%), New York (8.25%), Arkansas (8.2%), Alabama (8.15%), Oklahoma (8.1%), and California (8.0%).

Arizona isn't in this list but around the Phoenix area you pay up to 9.3% in some communities. Ouch.

Real big ticket items...cars and RVs

I do not think it is a coincidence that you see a lot of cars and RVs with Oregon tags. There are several RV manufacturers in Oregon. Off the top of my head I can think of Marathon, Monaco, Safari, and Beaver.

Reported without comment.

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