FBA prep centers in the 5 sales-tax-free states.
Storing inventory in NH, OR, DE, MT, or AK can keep you out of sales-tax nexus in those states. Here's where to prep — and what the trade-offs are.
The 5 tax-free states, compared.
Counts reflect prep centers verified in our directory within the last 30 days. Dashes mean we don't have data yet — never a guess.
The nexus argument, explained.
Amazon FBA sellers normally trigger sales-tax physical nexus in any state where their inventory is stored. In a state with sales tax, that nexus typically means the seller (or, under marketplace facilitator laws, Amazon) has to collect and remit sales tax on transactions delivered into that state.
New Hampshire, Oregon, Montana, Delaware, and Alaska are the five US states with no statewide sales tax. Storing inventory in any of them creates no sales-tax nexus in that state, because there is no sales tax for nexus to attach to. That's the entire mechanic — and the entire pitch.
Two caveats worth being honest about: (1) nexus rules vary by destination state. Storing in Oregon does not exempt you from collecting tax in states where you have other physical or economic nexus. (2) Amazon's actual FBA fulfillment centers are not necessarily in tax-free states — once your inventory leaves the prep center for an FC, it may land in a state that does have sales tax, which can recreate the nexus exposure the prep-step was meant to avoid.
This is orientation, not tax advice. Confirm any inventory or nexus strategy with a CPA who understands marketplace facilitator law.
Oregon
- Salem
- Portland, Eugene
- 4.3M
- 0
- Closest tax-free state to West Coast Amazon FCs
Oregon is the default tax-free pick for sellers shipping into Amazon's West Coast network. Portland sits roughly 3 hours from the SEA and ONT clusters, which keeps inbound transit times competitive even after the prep-center detour. Sellers using Oregon prep centers commonly cite proximity to FBA over pure tax math.
Featured prep centers in Oregon
We haven't verified a prep center in Oregon yet. Know one? Submit it →
Delaware
- Dover
- Wilmington, New Castle
- 1.0M
- 0
- East Coast hub, 90 min from Philly FC
Delaware is the East Coast counterpart to Oregon — small, no sales tax, and a short drive from Amazon's PHL and EWR clusters. Wilmington's port access also makes it a common landing point for inbound containers headed to FBA, which is why several import-heavy prep centers cluster there.
Featured prep centers in Delaware
We haven't verified a prep center in Delaware yet. Know one? Submit it →
New Hampshire
- Concord
- Manchester, Nashua
- 1.4M
- 0
- Closest tax-free state to Boston metro
New Hampshire is the standard tax-free option for sellers serving the Boston metro and broader New England demand. Manchester and Nashua sit a short drive from the Massachusetts FC cluster (BOS / BWI feeders), and the state has no individual income tax on earned wages either — a secondary draw for operators who relocate.
Featured prep centers in New Hampshire
We haven't verified a prep center in New Hampshire yet. Know one? Submit it →
Montana
- Helena
- Billings, Missoula
- 1.1M
- 0
- Lowest-cost option, but distant from FCs
Montana is the cheapest of the five on warehouse rent and labor, but the closest large Amazon FC is in Salt Lake City or Spokane — meaning inbound legs add 1-2 days of transit. Best suited to slow-moving SKUs, oversize items, or long-term storage where the cost-per-square-foot win outweighs transit drag.
Featured prep centers in Montana
We haven't verified a prep center in Montana yet. Know one? Submit it →
Alaska
- Juneau
- Anchorage
- 0.7M
- 0
- Niche — only relevant for AK-resident sellers
Alaska is the most niche of the five. Logistics costs from Anchorage into the lower 48 typically erase any tax-nexus advantage for sellers shipping to mainland FBA destinations. It shows up here mainly for Alaska-resident sellers and for businesses where the owner is already operating in-state for non-Amazon reasons.
Featured prep centers in Alaska
We haven't verified a prep center in Alaska yet. Know one? Submit it →
Common tax-free state questions.
Direct answers, written for sellers, not tax attorneys. None of this is tax advice — confirm specifics with your CPA.
Does storing FBA inventory in Oregon create sales tax nexus in Oregon?
No — Oregon has no statewide sales tax, so there is no Oregon sales tax to collect or remit, regardless of inventory location. Storing inventory in Oregon also does not by itself create nexus in any other state. Nexus is determined by each destination state's rules on physical and economic presence. Confirm with your CPA before relying on this for tax planning.
Is Delaware better than New Hampshire for FBA prep?
It depends on which Amazon FC cluster you ship into. Delaware is closer to PHL and EWR; New Hampshire is closer to the Boston-area FCs. Both states have no sales tax. Cost and capacity vary by individual center, not by state. Pick the state nearest your primary inbound destination and compare specific centers within it. Confirm transit assumptions with the prep center before committing.
Does Amazon have FBA warehouses in Montana or Alaska?
No — Amazon operates no FBA fulfillment centers in Montana or Alaska. Inventory prepped in either state must be shipped to an Amazon FC elsewhere (often Salt Lake City or Spokane from Montana; the lower-48 generally from Alaska). The prep-center step happens in-state; the FBA storage step does not. Confirm current FC network coverage on Amazon's seller documentation.
Will using a prep center in a tax-free state save me money on sales tax?
Only on sales-tax nexus tied to that specific inventory location. You still owe sales tax in every other state where you have physical or economic nexus — including states where Amazon stores your inventory after the prep step. Marketplace facilitator laws also shift collection to Amazon in most states. Treat the tax-free state as one input among many, not a blanket exemption. Confirm with your CPA.
Are tax-free state prep centers more expensive than other states?
Not as a rule. Pricing varies more by center, capacity, and service mix than by state. Oregon and New Hampshire pricing tends to track other West Coast and Northeast metros; Montana is typically cheapest on labor and rent; Delaware varies widely. Use our per-state comparison above and confirm current rates directly with each center.
Do I need to register my LLC in the tax-free state where my prep center is located?
Usually no — using a third-party prep center does not by itself require you to register an LLC in that state. Foreign-qualification rules vary by state and are triggered by activities like leasing your own space, having employees, or making in-person sales. Using a 3PL or prep center is typically not enough. Confirm with a business attorney or CPA for your specific situation.
How does economic nexus work in tax-free states?
Economic nexus is irrelevant in the five tax-free states because there is no sales tax to trigger. Economic nexus thresholds (typically $100K in sales or 200 transactions) apply in the 45 states with sales tax and are evaluated per-destination-state, not based on where your inventory sits. Storing in a tax-free state does not exempt you from economic nexus elsewhere. Confirm with your CPA.
Can I use multiple prep centers across different tax-free states?
Yes — there is no rule against splitting inventory across multiple prep centers in different states. Sellers commonly run one West Coast prep (often Oregon) and one East Coast prep (Delaware or New Hampshire) for transit-time reasons. Coordinating SKU allocation, FNSKU labeling, and inbound paperwork across centers adds operational overhead. Plan for it before committing.
We are not tax advisors. Sales tax nexus rules are complex and vary by destination state. Information on this page is for orientation only — confirm with your CPA before making decisions about inventory storage locations.