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Oregon Prep Centers and Sales Tax: How Much Amazon Sellers Save in 2026
Short answer: Oregon has no sales tax. When you buy inventory online and ship it to a prep center in Oregon, most retailers charge no sales tax on that order. Across the US, the average combined state and local sales tax is 7.53%, and it's over 9% in states like California, Washington and Tennessee. For a seller buying $10,000 of inventory a month, that's roughly $600 to $1,000 a month in most states that stays in the business.
Why shipping to Oregon removes the sales tax
Online retailers charge sales tax based on where an order is shipped, not where you live. Ship a $500 order to an address in California and you'll typically pay around 9% on top. Ship the same order to a warehouse in Oregon and the tax line is $0, because Oregon has no state or local sales tax.
Five states have no statewide sales tax: Oregon, Delaware, Montana, New Hampshire and Alaska. Alaska lets cities and boroughs add their own, so some Alaska addresses still get charged. Oregon, Delaware, Montana and New Hampshire are the true zero-tax ship-to states.
Who saves the most
- Online arbitrage sellers. You buy from retail websites at retail checkout, and most of those stores won't take a resale certificate. Shipping to Oregon is the simplest way to keep sales tax off every order.
- Sellers in high-tax states. The higher your home rate, the bigger the gap. See the table below.
- Sellers who haven't set up resale certificates, or who buy from many small suppliers where setting one up isn't worth the paperwork.
If you buy wholesale with a valid resale certificate, you usually aren't charged sales tax anyway, so the Oregon advantage is smaller for those orders. It still helps for anything you buy at retail.
How much sales tax you'd pay in each state
Average combined state and local rates as of July 1, 2026, from the Tax Foundation. Your exact rate depends on your city and county.
| State | Avg. rate | Tax on $10k of inventory | Per year at $10k a month |
|---|---|---|---|
| Louisiana | 10.13% | $1,013 | $12,156 |
| Tennessee | 9.61% | $961 | $11,532 |
| Washington | 9.57% | $957 | $11,484 |
| Arkansas | 9.48% | $948 | $11,376 |
| Alabama | 9.46% | $946 | $11,352 |
| Oklahoma | 9.06% | $906 | $10,872 |
| California | 9.03% | $903 | $10,836 |
| Illinois | 8.98% | $898 | $10,776 |
| New York | 8.54% | $854 | $10,248 |
| Arizona | 8.54% | $854 | $10,248 |
| Nevada | 8.24% | $824 | $9,888 |
| Texas | 8.20% | $820 | $9,840 |
| Colorado | 7.89% | $789 | $9,468 |
| Georgia | 7.56% | $756 | $9,072 |
| Ohio | 7.29% | $729 | $8,748 |
| North Carolina | 7.10% | $710 | $8,520 |
| Florida | 6.98% | $698 | $8,376 |
| New Jersey | 6.60% | $660 | $7,920 |
| Pennsylvania | 6.34% | $634 | $7,608 |
| Michigan | 6.00% | $600 | $7,200 |
| Oregon | 0% | $0 | $0 |
Want your own number? The savings calculator on our home page uses your zip code, average unit cost and monthly volume.
Does the tax savings cover prep fees?
Often, yes. Say your average unit costs $15. At the national average rate of 7.53%, sales tax adds about $1.13 per unit. Our standard processing fee runs from $1.60 per unit down to $0.90 per unit as volume grows (see current pricing). That fee covers inspection, FNSKU labeling and polybagging.
So for many sellers the tax they stop paying covers most or all of the prep cost. In higher-tax states, or with higher-priced items, it can cover it completely. You also get back the hours you'd spend labeling and bagging, plus the cost of your own supplies.
The fine print
- Use tax. In general, use tax applies to things you buy for your own use without paying sales tax. Inventory bought for resale usually isn't subject to it. If you pull items out of inventory for personal use, your home state may expect use tax on those. Rules vary by state.
- Your customers still pay sales tax. Amazon collects sales tax from buyers in the states that require it. Where your prep center is doesn't change that, and it isn't your cost.
- Income tax is separate. This is only about the sales tax you pay when you buy inventory.
This guide is general information, not tax advice. Talk to a tax professional about your own situation.
Common questions
Do I have to live in Oregon to use an Oregon prep center?
No. Most of our clients don't live in Oregon. Sellers from all over the US, and from other countries, have their inventory shipped straight to us. They track it and create shipments online in the PrepWorx client portal, and talk with our team on Discord.
Why not just use a prep center in my own state?
You can, but you'll usually pay your state's sales tax on retail purchases shipped there. With an Oregon prep center that tax is $0, which often offsets the prep fees.
Which states have no sales tax?
Oregon, Delaware, Montana and New Hampshire have no state or local sales tax. Alaska has no state sales tax, but some local governments charge one.
Is this legal?
Yes. Choosing where your inventory is shipped is a normal business decision, and retailers charge tax based on the delivery address. Keep good records and talk to a tax professional about any use tax rules in your state.
Ship to Oregon and keep the sales tax
PrepWorx is an Amazon FBA prep center and 3PL in Independence and Salem, Oregon, with a 24-hour average turnaround and no monthly volume minimum.
