Five US States Charge No Sales Tax on an iPhone, and Only Three Are Tax-Free Everywhere

Apple iPhone 18 Pro color lineup
Image: Apple

Five American states charge no statewide sales tax: Alaska, Delaware, Montana, New Hampshire and Oregon. On a $1,199 iPhone 18 Pro, an 8 percent rate comes to $95.92, so where no sales tax is charged the saving is roughly the same size as the $100 Apple added to its older iPhones this month.

Apple iPhone 18 Pro 2up
iPhone 18 Pro starts at $1,199 before any sales tax is added. Image: Apple

Only three of those five are tax-free everywhere inside their borders. Delaware, New Hampshire and Oregon have no local sales tax either. Alaska and Montana both permit local sales taxes, so a Montana or Alaska address is not automatically a tax-free one.

Key factWhere it stands
States with no statewide sales taxAlaska, Delaware, Montana, New Hampshire, Oregon
No local sales tax eitherDelaware, New Hampshire, Oregon
Local taxes still possibleAlaska, at roughly 1 to 7 percent, and Montana in resort and tourism areas
Worth on a $1,199 iPhone 18 Pro$95.92 at an 8 percent rate, our arithmetic
US list pricesQuoted before sales tax, unlike UK, EU, Japanese and Indian prices
Apple’s published rate tableNone. The figure that counts is the one at checkout

The five states, and the two with an asterisk

StateStatewide sales taxLocal sales taxWhat it means for an iPhone
DelawareNoneNoneNo sales tax charged
New HampshireNoneNoneNo sales tax charged
OregonNoneNoneNo sales tax charged
AlaskaNonePermitted, roughly 1 to 7 percentDepends entirely on the locality
MontanaNonePermitted in resort and tourism jurisdictionsDepends entirely on the locality

This is why the phrase tax-free state is worth handling carefully. Three of them genuinely are. The other two are free of a state rate while leaving the door open to a local one, which on a $1,199 phone is the difference between saving $95.92 and saving nothing at all.

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Apple iPhone 18 Pro Clear Case
Accessories are taxed on the same basis as the phone. Image: Apple

What it is worth, configuration by configuration

ConfigurationApple’s priceSales tax at 8 percentTotal at 8 percent
iPhone 18 Pro 256GB$1,199$95.92$1,294.92
iPhone 18 Pro 512GB$1,399$111.92$1,510.92
iPhone 18 Pro 1TB$1,799$143.92$1,942.92
iPhone 18 Pro 2TB$2,399$191.92$2,590.92
iPhone 18 Pro Max 256GB$1,299$103.92$1,402.92
iPhone 18 Pro Max 2TB$2,499$199.92$2,698.92

Every figure in the last two columns is our arithmetic at an illustrative 8 percent, not a published rate. Combined state and local rates vary widely, and Apple publishes no sales tax table, so treat these as the shape of the number rather than the number.

The pattern is the part worth keeping. Sales tax is a percentage, so it scales with the decision you make about storage. Choosing 2TB over 256GB on the Pro or the Pro Max adds $1,200 to the price and, at 8 percent, another $96 in tax on top of it.

Apple iPhone 18 Pro 2up
Apple set US prices at its September 9 Surprise and Shine event. Image: Apple

Why the American price looks lower than everyone else’s

There is a structural reason the United States shows up as the cheapest market for an iPhone 18 Pro, and it is not entirely about Apple. American list prices are quoted before sales tax. British, European, Japanese and Indian prices are quoted with tax already included.

The UK price is a clean example. An iPhone 18 Pro is listed at 1,199 pounds with VAT inside it, and there is no tourist refund to reclaim, because the UK’s retail export scheme for visitors ended on January 1, 2021. Japan lists the same phone at 219,800 yen tax included. Set the American $1,199 against those and you are comparing a pre-tax figure with two post-tax ones.

The line this does not cross

Sales tax in the United States is charged on where a sale takes place, so this is a real saving for people who live in one of those states or who are genuinely shopping there. It is not a technique.

We are not suggesting anyone enter a delivery address they do not use. That is not a discount, it is a misrepresentation, and it is the one route in this whole launch that we would tell you to leave alone. The legitimate savings on an iPhone 18 Pro are trade-in credit, 0 percent financing, the veterans and military discount, and, if you happen to live in Delaware, New Hampshire or Oregon, the sales tax you were never going to be charged.

What has not been confirmed

Apple has not published a sales tax rate table for the new iPhones, and local rates change without reference to product launches, so the only authoritative figure is the one shown at checkout with your own address attached. Our 8 percent is a worked illustration and nothing more.

Pre-orders open at 5 a.m. PT on Saturday, September 12, with devices in stores on Friday, September 18. The full price breakdown has every tier, and the event recap covers the rest of what Apple announced on September 9.