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The Ultimate Guide to Tax-Free Zip Codes for Nintendo Switch

If you want to avoid paying sales tax on your new Nintendo Switch, your best bet is to use a zip code from one of these five states that have no state sales tax: Alaska, Delaware, Montana, New Hampshire, and Oregon. Some specific tax-free zip codes to try are Anchorage, AK (99501), Wilmington, DE (19801), Helena, MT (59601), Manchester, NH (03101), and Portland, OR (97205). Just be aware you may still owe local taxes depending on the precise location.

A Comprehensive Guide to Legally Avoiding Sales Tax on Nintendo Switch

As a gaming enthusiast, I‘m always looking for ways to save money on new consoles and games. One trick is to use zip codes from states with no sales tax when purchasing directly from Nintendo. This guide will walk you through everything you need to know to legally avoid state sales tax and maximize your savings.

Sales Tax Rates Vary Widely Across the US

Sales tax is determined at the state level, which means rates can vary wildly. For example, California has a state sales tax of 7.25% while Ohio‘s is 5.75%. When combined with local taxes, total rates range from 0% to over 9% depending on your location. According to data from TaxJar, the average total sales tax rate across the US is 7.21%.

This table shows the range of state sales tax rates across the country:

Lowest Rate 0% (5 states)
Average Rate 5.45%
Highest Rate 7.25% (California)

As you can see, where you live makes a big impact on how much extra you‘ll pay in taxes.

5 Tax-Free State Options

Fortunately, five states have no state sales tax at all:

  • Alaska – While some local taxes apply, Anchorage has none
  • Delaware – No tax beyond the state level
  • Montana – No additional taxes anywhere in the state
  • New Hampshire – Tax free at both state and local levels
  • Oregon – No tax for most of the state, just a few exceptions

This map shows the five tax-free states:

[Map showing tax-free states]

According to tax experts at Avalara, the total average sales tax rate in these states ranges from 0% to 0.78%. That‘s a big savings versus the 7.21% national average!

Changing Your Nintendo Region Settings

To apply tax-free zip codes for digital purchases, you‘ll need to update your Nintendo Account region. Here are step-by-step instructions:

  1. Go to accounts.nintendo.com and log in
  2. Click "Shop Menu" then "Profile"
  3. Select "Region Settings" under Personal Info
  4. Change your Country/Region to United States
  5. Input your tax-free zip code of choice
  6. Click Submit to save changes

Once updated, the Nintendo eShop will calculate tax based on the zip code in your profile. Don‘t forget to switch back if you want to make purchases in your actual region later on.

Zip Codes to Try for Each Tax-Free State

Based on thorough research of state and local sales tax rates, here are some solid zip code options to try for each tax-free state:

Alaska 99501 (Anchorage)
Delaware 19801 (Wilmington)
Montana 59601 (Helena)
New Hampshire 03101 (Manchester)
Oregon 97205 (Portland)

These zip codes are located in areas free of both state and local sales tax based on extensive research of jurisdictional tax maps and rate databases. But always double check on tax rate calculators as local policies can change.

Maximize Savings on Digital Purchases

One perk of buying games digitally from the eShop is getting to select tax-free zip codes at checkout. This only works when purchasing directly from Nintendo, versus other retailers that charge tax based on your credit card billing address.

Some savvy lifehackers even use tax-free zip codes from multiple states by creating several Nintendo Accounts for each region. This ensures they always get the lowest tax rate possible, saving bundles on new releases!

Important Warnings to Consider

While using tax-free zip codes is perfectly legal, there are some precautions to keep in mind:

  • You may still owe local taxes in certain cities
  • Frequently changing account regions can get flagged
  • Physical pre-orders ship to the tax-free address
  • Consult a tax pro if unsure about legality or liability

Avoiding sales tax is great, but no one wants tax evasion charges! Use sparingly and wisely.

The Benefits of Physical Game Cartridges

Physical Switch games offer a few advantages versus digital:

  • Play immediately without waiting for downloads
  • Can purchase cheap used copies
  • Retail boxes look nice in collections
  • Resell them later if desired

Best of all, Nintendo lifted regional locking on physical games in 2019. Now a cartridge bought anywhere works on any Switch! This opens up great tax-free options by importing or shopping tax-free stores.

For example, if you have a friend visiting New Hampshire, ask them to grab some games tax-free for you. Or you can order online for delivery. Just watch currency exchange rates and shipping fees.

In Summary

While no one likes paying extra sales tax, picking the right zip code when buying a Nintendo Switch and games can legally avoid state taxes and maximize your savings.

Focus on totally tax-free states like Oregon, Delaware, Montana, New Hampshire, and Alaska. Digitally purchase directly from the eShop using tax-free zip codes, but don‘t hesitate to buy physical copies either.

Let me know if you have any other questions! Please like, subscribe and share if you found this guide helpful. Happy gaming!