Aircraft Sales & Use Tax by State (2026)

Aircraft sales and use tax varies more than almost any other big-ticket purchase. Some states offer fly-away exemptions (remove the plane within a set number of days and pay no sales tax). Some exempt casual, private-party sales. Five states have no sales tax at all. But the rule that decides most bills is simple: use tax follows where the aircraft is hangared — not where you bought it.

This is a reference page. The table below summarizes how representative states treat an aircraft purchase in 2026, followed by the four mechanics you need to understand — and the one myth (the LLC “trick”) that costs owners real money. Always confirm your specific situation against the state’s department of revenue — aircraft tax rules have hard deadlines and mandatory penalties.

Key takeaways

Five states — Montana, New Hampshire, Oregon, Delaware, and Alaska — have no general sales tax, so an aircraft purchase is untaxed at the state level.
The rule that decides almost every other bill: use tax follows where the aircraft is hangared, not where you bought it or what state issued the bill of sale.
Fly-away exemptions let nonresident buyers take delivery tax-free if the plane leaves fast — Florida’s window is 10 days (20 days after repairs or alterations) — but they come with strict follow-up proof.
Casual-sale exemptions can drop the sales-tax portion of a private-party purchase, but most of those same states still charge use tax once the plane is based there.
Holding the aircraft in a Montana or Wyoming LLC does not avoid use tax — states look through the entity to where the plane actually lives.

The core rule: the hangar decides, not the bill of sale

Before the table, internalize this, because it explains almost every aircraft tax bill: where you buy the plane rarely controls the tax. Where you keep it does.

That single principle is why the popular schemes — buy in Montana, register through an out-of-state LLC — so often fail on audit. They change the paperwork, not the hangar.

Aircraft sales & use tax by state (2026)

Representative states and how each treats an aircraft purchase. Rates are the state base sales/use-tax rate; local surtaxes may add more. Verify the current rule and any conditions with the linked department of revenue before you close.

State	State sales/use tax	Key aircraft treatment
Montana	None	No general sales tax. Aircraft purchase untaxed at the state level. Basing the plane elsewhere still triggers that state’s use tax.
New Hampshire	None	No general sales tax. No sales or use tax on aircraft purchases.
Oregon	None	No general sales tax. No sales or use tax on aircraft purchases.
Delaware	None	No general sales tax. No sales or use tax on aircraft purchases.
Alaska	None (state)	No statewide sales tax. Some local boroughs levy their own sales tax; check the borough.
Florida	6%	Fly-away exemption: nonresident buying by or through a registered FL dealer/broker may take delivery tax-free if the aircraft leaves within 10 days (or within 20 days after completion of repairs/alterations), with affidavit and out-of-state proof — see the Florida DOR’s aircraft tax brochure (GT-800008). Private-party sales owe use tax. Full Florida guide.
Texas	6.25%	Fly-away / out-of-state exemptions for aircraft removed and used out of state, plus exemptions for certain flight-school, agricultural, and common-carrier use. Occasional-sale relief is narrow. Verify with the Texas Comptroller’s aircraft tax guidance (94-168).
Arizona	5.6% (TPT)	Transaction privilege tax on the seller’s retail activity; casual/private-party sales generally aren’t taxed, but use tax can apply on an aircraft based in AZ. Separate annual aircraft registration with ADOT. Full Arizona guide.
California	7.25%+ (use tax)	Use tax with a 12-month test: an aircraft first functionally used outside CA and brought in more than 12 months after purchase is generally exempt; brought in sooner, it’s presumed purchased for CA use and taxable. Heavily audited — see the CDTFA’s Aircraft and California Tax (Publication 79A). Full California guide.
New York	Exempt	General-aviation aircraft, and machinery/equipment installed on them, are exempt from state and local sales and use tax (effective Sept. 1, 2015), per TSB-M-15(3)S. Confirm your aircraft meets the “general aviation” definition.
Washington	6.5% + aircraft excise	Use tax applies to aircraft based in WA; casual-sale relief is limited. General-aviation aircraft also pay an annual aircraft excise (registration) fee in lieu of personal property tax.

Values above are for orientation, not filing. Rates and exemption conditions change, and several states layer local surtaxes or separate registration fees on top — the linked state sources are authoritative.

Mechanic 1 — Fly-away exemptions

A fly-away exemption lets a nonresident buyer take delivery in a state without paying its sales tax, on the condition that the aircraft is removed within a set window and based elsewhere. Florida’s clock is 10 days (20 days after completion of repairs or alterations); other states use windows in the 10-to-30-day range. Every version comes with paperwork: a signed affidavit at closing, then follow-up proof — out-of-state fuel and hangar invoices tied to the N-number, and evidence the aircraft was registered outside the delivery state.

Mechanic 2 — Casual / occasional-sale exemptions

Some states exempt a casual or occasional sale — a sale by someone who isn’t in the business of selling aircraft. Where it applies, buying from a private individual rather than a dealer can drop the sales-tax portion of the deal. Arizona’s transaction privilege tax, for example, is a tax on the seller’s retail activity, so a genuine private-party sale generally falls outside it.

Mechanic 3 — Use tax follows the hangar

This is the rule that catches people. Use tax is owed by the state where the aircraft is primarily hangared and flown, regardless of where the sale closed. Buy tax-free anywhere you like; the moment the plane lives at a hangar in a use-tax state, that state’s rate applies to the purchase price, less credit for like tax already paid elsewhere.

States establish the “primary base” from real evidence: your FAA registration address, the hangar or tie-down lease, fuel purchase patterns, maintenance records, and flight logs. Two representative “how soon is too soon” tests:

California: 12-month test; brought in later than 12 months after purchase: generally exempt
Florida: 20-day / 6-month; nonresident-owned aircraft presumption window

The specifics differ by state; the principle is uniform: the hangar decides. See the CDTFA’s Aircraft and California Tax guidance for how California documents the test.

Mechanic 4 — No-sales-tax states

Five states impose no general sales or use tax, so an aircraft purchase is untaxed at the state level: Montana, New Hampshire, Oregon, Delaware, and Alaska (Alaska has no statewide tax, though some local boroughs levy their own). This is real, and it’s why Montana in particular shows up in aircraft-ownership marketing.

The Montana LLC myth: it does not avoid use tax

Owners are told to hold the plane in an out-of-state LLC — often Montana or Wyoming — to escape sales and use tax. It doesn’t work as a tax play, and it’s worth being blunt about why.

An LLC changes who owns the aircraft on the FAA registry and gives you a liability shield and a clean ownership structure for co-owners. Those are real benefits. But an LLC does not move the hangar, and use tax follows the hangar. A Montana LLC that owns a plane based in San Diego still owes California use tax; states look straight through the entity to the aircraft’s actual base and the residency of the people controlling it. Fly-away and casual-sale exemptions apply to the transaction, not to the entity — an LLC doesn’t unlock either one.

Use an LLC for the reasons it actually delivers: separating aircraft liability from your other assets, keeping your name out of the public N-number lookup, and giving co-owners an operating agreement instead of a handshake. Just don’t buy it as a sales-tax shelter — that’s the flight-department and Montana-LLC trap that gets owners audited.

Where FilingDesk fits

The tax side of aircraft ownership — the fly-away clock, the use-tax return, the state registration — stays with you and your aviation CPA or attorney, and it should. What we do is the entity: form the LLC that will hold the aircraft. Describe the holding company in plain English, and we run the name check, prepare and file the formation documents — a human specialist reviews every filing before it goes to the state — then handle your EIN and generate an operating agreement your aviation counsel can build on. One flat $99 plus the state’s filing fee, passed through at cost, with a 60-day money-back guarantee. Live for filing today: Wyoming ($199 all-in), Delaware ($209), and Florida ($224). FAA registration, state aircraft registration, and the sales/use-tax math stay with you and your aviation pros — the entity is the part we make painless.

Ready? Start your aircraft LLC.

Frequently asked questions

Which states have no sales tax on aircraft?

Five states have no general sales or use tax at all, so an aircraft purchase is untaxed at the state level: Montana, New Hampshire, Oregon, Delaware, and Alaska. But no-sales-tax at purchase does not stop the state where you actually hangar and fly the plane from charging its own use tax. Buying or registering in Montana while basing the aircraft in a sales-tax state is exactly the setup states audit for.

What is an aircraft fly-away exemption?

A fly-away exemption lets a nonresident buyer take delivery of an aircraft in the state tax-free if they remove it from that state within a set number of days — often 10 to 30 — and provide proof it was based and registered elsewhere. Florida, Texas, and others offer versions of it. The deadlines are strict and usually require a signed affidavit plus follow-up out-of-state fuel, hangar, and registration records.

Does the state where I buy the aircraft decide the tax?

Not usually. Use tax follows where the aircraft is primarily hangared and based, not where the closing happened. If you buy tax-free in one state but keep the plane in a sales-tax state, that home state's use tax applies, with a credit for like tax lawfully paid elsewhere. This is the core rule behind almost every aircraft tax bill: the hangar decides, not the bill of sale.

What is a casual or occasional sale exemption for aircraft?

Some states exempt a private-party (casual or occasional) sale from sales tax because the seller isn't a dealer. Where it exists, buying from an individual rather than a dealer can avoid the sales-tax portion. But most of those same states still impose use tax on the aircraft once it's based there, so the exemption often shifts the tax rather than eliminating it. Confirm both halves with the state department of revenue.

Does putting the aircraft in an LLC avoid use tax?

No. An LLC changes who owns the aircraft on the FAA registry — it does not change where the plane is hangared, and use tax follows the hangar. A Montana or Wyoming LLC that owns a plane based in California still owes California use tax, and states look through the entity to the aircraft's actual base. The LLC is a liability and ownership tool, not a sales-tax shelter.

How much is use tax on an aircraft?

Use tax generally equals the buyer's home-state sales-tax rate applied to the purchase price, so a plane based in a 6% state costs roughly 6% of the price in tax if no exemption applies. States credit like tax lawfully paid to another state, so you owe only the difference. Local surtaxes may add a little, and a few states cap or exempt certain categories — check the state's aircraft-specific guidance.

What happens if I miss a fly-away exemption deadline?

The state assesses the sales tax, interest, and often a penalty equal to the tax itself. Fly-away windows are strict — Florida's is 10 days, or 20 days after completion of repairs or alterations — and require follow-up proof: out-of-state fuel and hangar invoices tied to the N-number, plus evidence the aircraft was registered elsewhere. Miss the window or fail to produce the records, and the exemption is gone.

Sources

This guide is general information, not legal advice. FilingDesk is not a law firm.

Aircraft sales and use tax by state, 2026