Aircraft Sales Tax by State (2026): 9 States Charge $0

A private plane owes $0 state sales tax in nine states: Montana, New Hampshire, Oregon, Delaware, and Alaska (no general sales tax), Massachusetts and Rhode Island (all aircraft exempt), Maine (exempt through June 2033), and New York (general-aviation aircraft exempt). North Carolina caps the tax at $2,500 and South Carolina at $500; most other states charge their full rate — 6% in Florida, 6.25% plus up to 2% local in Texas, 7.25% and up in California. Florida waives it for nonresidents who buy through a registered dealer or broker and remove the plane within 10 days, and Texas exempts qualifying private-party sales. 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

Nine states charge $0 state sales tax on a typical private plane: Montana, New Hampshire, Oregon, Delaware, and Alaska have no general sales tax, Massachusetts and Rhode Island exempt all aircraft, Maine exempts aircraft through June 30, 2033, and New York exempts general-aviation aircraft.
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 buyers take delivery tax-free if the plane leaves fast — Florida’s window, for nonresidents, is 10 days (20 days after repairs or alterations); Virginia’s is 60 days — but they come with strict follow-up proof.
Casual-sale exemptions make a qualifying private-party purchase genuinely tax-free in Texas and Arizona, but in California and Washington use tax still applies once the plane is based there, and Florida taxes private aircraft sales outright.
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. Montana LLC for an airplane.
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. Full Delaware guide.
Alaska	None (state)	No statewide sales tax. Some Alaska cities and boroughs levy their own sales tax; check locally.
Massachusetts	Exempt	Sales of aircraft, and their storage, use, or other consumption, are exempt from sales and use tax (M.G.L. c. 64H § 6(vv); c. 64I § 7(e)).
Rhode Island	Exempt	New and used aircraft and aircraft parts are exempt from sales and use tax (R.I. Gen. Laws § 44-18-30(56)).
Maine	Exempt through June 30, 2033	Sales, use, and leases of aircraft are exempt from July 1, 2011 through June 30, 2033 (36 M.R.S. § 1760(88-A)). One wrinkle: the casual-sale statute (§ 1764) still names aircraft among taxable private-party sales, though Maine Revenue Services’ casual-sale bulletin doesn’t list them — confirm a private-party purchase with MRS.
North Carolina	4.75%, max $2,500	Capped at $2,500 per aircraft, and aircraft aren’t subject to local or transit sales tax (NCDOR).
South Carolina	5%, max $500	Maximum tax of $500 per aircraft; local sales taxes don’t apply to max-tax items (SCDOR; S.C. Code § 12-36-2110).
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 s. 212.05(1)(a)2., Florida Statutes. Private-party sales owe use tax. Full Florida guide.
Texas	6.25%	Occasional-sale exemption: a buyer who doesn’t hold, and isn’t required to hold, a Texas sales-tax permit can buy tax-free from a seller who isn’t in the business of selling taxable items (Form 01-917). Fly-away: no tax on an aircraft used and registered in another state before any Texas use (Form 01-907, sent by the seller within 30 days of the sale), plus flight-school, agricultural, and certificated-carrier exemptions. Local tax of up to 2% applies on top. See the Texas Comptroller’s aircraft tax guidance (94-168). Full Texas guide.
Arizona	5.6% (TPT)	Transaction privilege tax on the seller’s retail activity, which excludes casual sales (A.R.S. § 42-5001). Arizona use tax reaches only property bought from a retailer (§ 42-5155), so a genuine private-party purchase is generally untaxed, while a plane bought from an out-of-state dealer and based in AZ owes use tax. AZ-based aircraft must register with ADOT within 60 days and renew annually; ADOT won’t register until any use tax is paid (§ 28-8322). Full Arizona guide.
California	7.25%+ (use tax)	Use tax with a 12-month test: an aircraft bought and 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) if the buyer is a CA resident (an LLC counts when Californians hold 50%+ of its membership interests — or, since Sept. 30, 2026, when it’s a tax-evading “shell” with any California member or beneficial owner: R&TC 6248), it’s subject to CA property tax in its first 12 months, or a nonresident buyer keeps it in CA more than half that year; the presumption can be rebutted with documentary evidence (CDTFA 12-month test FAQ). The CDTFA says it locates and investigates aircraft sales on which tax wasn’t reported — see its 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. Full New York guide.
Washington	6.5% + local (use tax); flat annual excise	Use tax applies to aircraft based in WA, including private-party and out-of-state purchases; nonresidents may use an aircraft in the state up to 90 days in any continuous 12-month period. The 10% luxury tax on noncommercial aircraft over $500,000 that was slated for April 1, 2026 was repealed before it took effect (2026 c 255 § 408; see the RCW 82.48A dispositions). The flat annual aircraft excise tax, paid in lieu of property tax, runs $20–$125 by aircraft class through 2026 and rises to $120–$1,220 on January 1, 2027 (RCW 82.48.030; commuter air carriers pay more). Full Washington guide.
Virginia	2% (aircraft sales & use tax)	A separate aircraft sales and use tax of 2% of the purchase price; individual buyers file Form AST-3 before the Department of Aviation licenses the plane. No tax if the aircraft leaves Virginia within 60 days of purchase, but storing it in Virginia for more than 90 days in a calendar year makes it taxable (Virginia Tax).
Connecticut	6.35%; exempt at 6,000 lb+	Aircraft with a maximum certificated takeoff weight of 6,000 lb or more are exempt from sales and use tax (CGS § 12-412(99)); lighter aircraft pay the general 6.35% rate.

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.

Fly-away exemptions: Florida’s 10 days, Virginia’s 60

A fly-away exemption lets a buyer take delivery in a state without paying its sales tax, on the condition that the aircraft is removed within a set window (or never used there) and based elsewhere. Florida’s clock is 10 days (20 days after completion of repairs or alterations); Virginia’s is 60 days, and Texas has no removal clock at all — the plane must be used and registered in another state before any Texas use, and if it returns within the first year, more than half its departures that year must be from outside Texas. Florida’s version carries the heaviest 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 Florida. Texas’s runs on Form 01-907, signed by buyer and seller and sent to the Comptroller by the seller within 30 days of the sale.

Private-party sales: tax-free in Texas and Arizona, taxed in Florida

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.

Use tax follows the hangar — and each state’s timing test

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; if the plane is then based at a hangar in a use-tax state, that state’s rate generally applies to the purchase price, less credit for like tax already paid elsewhere — subject to each state’s timing test (California presumes a plane brought in within 12 months of purchase was bought for use there if, among other triggers, the buyer is a California resident — a test that can reach the buyer’s LLC; Texas doesn’t tax one predominantly used outside Texas for its first year; Florida presumes property used elsewhere 6 months or longer wasn’t bought for Florida use).

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 days / 6 months; nonresident-owned plane: use-tax exempt if in FL no more than 20 days in the 6 months after purchase

The specifics differ by state; the principle is uniform: the hangar decides. See the CDTFA’s 12-month test FAQ for how California applies the test.

The nine $0-tax states for aircraft

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 cities and boroughs levy their own). This is real, and it’s why Montana in particular shows up in aircraft-ownership marketing.

Four more states reach $0 by exemption: Massachusetts exempts the sale and use of aircraft (M.G.L. c. 64H § 6(vv); c. 64I § 7(e)), Rhode Island exempts any new or used aircraft (R.I. Gen. Laws § 44-18-30(56)), Maine exempts aircraft sales, use, and leases through June 30, 2033 (36 M.R.S. § 1760(88-A) — confirm a private-party purchase with Maine Revenue Services, since the casual-sale statute still names aircraft), and New York exempts general-aviation aircraft (TSB-M-15(3)S). Just short of zero: Connecticut exempts aircraft of 6,000 lb or more, and North Carolina and South Carolina cap the tax at $2,500 and $500.

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. California has written that into law: for its 12-month test, an LLC is a California resident when Californians hold 50% or more of its membership interests, and since September 30, 2026 a “shell company” — an LLC used to evade the tax — is one if any member or beneficial owner is, with its officers, managers, and members personally liable for the unpaid tax, interest, and penalties (R&TC 6248, 6829.5). 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 Montana-LLC trap that gets owners audited. The other aircraft-LLC trap has nothing to do with tax: if the LLC’s only business is the plane and members pay anything toward flights, the FAA can treat it as an uncertificated charter operator under 14 CFR Part 119 — the flight department company problem, which needs aviation counsel before anyone boards.

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?

Nine states charge no state sales or use tax on a typical private aircraft. Montana, New Hampshire, Oregon, Delaware, and Alaska have no general sales tax (some Alaska cities and boroughs levy their own); Massachusetts and Rhode Island exempt the sale and use of aircraft outright; Maine exempts aircraft sales, use, and leases through June 30, 2033; and New York exempts general-aviation aircraft from state and local sales and use tax. Connecticut also exempts aircraft with a maximum certificated takeoff weight of 6,000 pounds or more. But buying in one of these states does not stop a different state where you actually hangar and fly the plane from charging its own use tax.

What is an aircraft fly-away exemption?

A fly-away exemption lets a buyer take delivery of an aircraft in a state without paying its sales tax if the plane is removed and based elsewhere. The window varies: Florida gives nonresidents who buy through a registered dealer or broker 10 days (20 days after completion of repairs or alterations), Virginia allows 60 days, and Texas has no clock at all — it exempts an aircraft used and registered in another state before any Texas use. Florida's version requires a signed affidavit plus follow-up out-of-state fuel, hangar, and registration records; Texas's runs on Form 01-907, signed by buyer and seller.

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 because the seller isn't a dealer. In Texas (with Form 01-917, when the buyer holds no sales-tax permit) and Arizona (whose use tax reaches only purchases from a retailer), a qualifying private-party purchase is untaxed outright. In California and Washington the sale escapes sales tax but the buyer owes use tax once the plane is based there, and Florida taxes occasional aircraft sales outright. 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 taxes can add up to 2% in Texas, though Florida's county surtax reaches only the first $5,000 of the price; a few states cap the tax outright — North Carolina at $2,500 and South Carolina at $500 per aircraft — and Massachusetts, Rhode Island, Maine (through June 2033), and New York (general aviation) exempt it, so 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