Best States for NFA Item Ownership: 2025 Review

If you're interested in owning NFA-regulated firearms like suppressors, short-barreled rifles (SBRs), or machine guns, where you live matters. While federal compliance is required everywhere, state laws differ significantly. In 2025, five states stand out for making NFA ownership easier: New Hampshire, West Virginia, Arkansas, Montana, and South Dakota. Here's why:

• New Hampshire: No state sales tax, streamlined NFA trust setup, and strong self-defense laws.
• West Virginia: No sales tax on firearms and simple laws aligned with federal regulations.
• Arkansas: Follows federal rules, allows NFA items for hunting, and supports NFA trusts.
• Montana: Constitutional Carry, no state sales tax, and consistent firearm laws statewide.
• South Dakota: No state tax on firearms, quick purchase processes, and robust self-defense protections.

These states combine clear regulations, financial perks like tax savings, and support for NFA trusts, making them ideal for firearm enthusiasts.

Quick Comparison

State	Sales Tax on Firearms	NFA Trust Support	Key Features
New Hampshire	None	Simple setup	No permits required for carry
West Virginia	None	Supported	Follows federal rules, no extra hurdles
Arkansas	Yes (except holidays)	Supported	NFA items allowed for hunting
Montana	None	Supported	Constitutional Carry, preemption laws
South Dakota	None	Supported	Gold Card speeds purchases

These states lead in simplifying ownership, reducing costs, and ensuring compliance with federal and state laws.

Ranking the Best and Worse Gun States in America

1. New Hampshire

New Hampshire takes the top spot as 2025's most gun-friendly state, making it easier for residents to navigate federal NFA compliance.

State Laws

Thanks to its Constitutional Carry law, residents aged 18 and older can carry firearms - openly or concealed - without needing a permit, training, fingerprinting, or tests. The state also upholds strong self-defense protections, removing the obligation to retreat in dangerous situations. These laws, combined with other advantages, make it an appealing choice for firearm owners.

Tax Benefits

New Hampshire’s lack of a state sales tax means significant savings, especially on expensive NFA items.

NFA Trust Support

The state’s regulations make it straightforward to establish NFA trusts, focusing solely on meeting federal requirements.

2. West Virginia

West Virginia stands out as the second-best state for owning NFA items in 2025, mainly due to its favorable tax policies and straightforward laws that make firearm ownership more affordable.

State Laws

In West Virginia, the rules are simple: the state sticks to federal regulations without adding extra restrictions for NFA items. This clarity not only makes compliance easier but also creates a more welcoming environment for firearm enthusiasts.

Tax Savings

One of the biggest perks? West Virginia doesn’t charge sales tax on firearm purchases. This means significant savings on high-ticket NFA items like suppressors, short-barreled rifles, and machine guns. On top of that, recent legislative efforts to cut taxes on firearms and ammunition have solidified the state’s reputation as a haven for gun owners.

3. Arkansas

Arkansas takes the third spot in 2025 for NFA item ownership, thanks to its straightforward regulations and strong support for Second Amendment rights, all while adhering to federal guidelines. The state builds on the simplicity seen in places like West Virginia, offering even more streamlined benefits for firearm enthusiasts.

State Laws

Arkansas sticks to federal NFA standards, with no extra restrictions on items like suppressors or short-barreled rifles. The state’s laws actively back firearm ownership, allowing the lawful use of NFA items - including for hunting - under federal guidelines. Arkansas also has a "shall issue" concealed carry permit system, which ensures permits are issued to qualified applicants. Plus, there’s no need for additional state-specific permits or registrations beyond what the federal ATF requires, making the process as smooth as possible.

NFA Trust Support

NFA trusts are another option for firearm owners in Arkansas. Setting up an NFA trust here simplifies the transfer process and provides added privacy, working seamlessly within the federal framework. These trusts are widely recognized across the country, offering a reliable way to manage NFA-regulated items efficiently.

sbb-itb-6d07923

4. Montana

Montana ranks fourth in NFA item ownership for 2025, thanks to its straightforward Constitutional Carry laws and minimal state-level bureaucracy. In the Big Sky State, NFA enthusiasts can focus primarily on meeting federal requirements without being bogged down by additional state hurdles.

State Laws

Montana's Constitutional Carry framework allows both open and concealed carry without the need for state-issued permits. This permissive stance extends to NFA items like suppressors and short-barreled rifles, with the state limiting its involvement to ensure compliance with federal regulations.

The state also enforces preemption laws, preventing local governments from creating firearm regulations that go beyond state laws. This ensures consistency across Montana, making it easier for gun owners to navigate the rules. Additionally, Montana's Castle Doctrine and Stand Your Ground laws provide legal protections for individuals using deadly force in self-defense situations. These laws not only simplify legal compliance but also help reduce associated costs.

Tax Benefits

One of Montana's standout advantages is its lack of a state sales tax. For NFA buyers, this means that purchases of suppressors, short-barreled rifles, or other regulated items are subject only to federal excise taxes and any applicable local taxes. This tax policy can result in noticeable savings, making Montana a financially attractive option for firearm enthusiasts.

NFA Trust Support

Montana also provides a favorable environment for managing NFA trusts. These trusts, which streamline the transfer process for NFA items while offering privacy benefits, are fully supported under federal ATF guidelines in the state. With Montana's straightforward firearm regulations, establishing and managing an NFA trust is far simpler compared to states with stricter rules. This ease of use adds another layer of appeal for residents looking to own and manage NFA items efficiently.

5. South Dakota

South Dakota stands out as one of the top states for 2025 NFA ownership, thanks to its Constitutional Carry laws, tax perks, and streamlined purchasing processes. With recent legislative updates and a strong commitment to Second Amendment rights, the state has become a haven for gun enthusiasts.

State Laws

South Dakota's Constitutional Carry policy allows both open and concealed carry without the need for a state-issued permit. When it comes to NFA items, the state focuses on federal compliance, avoiding additional state-imposed restrictions.

Firearm registration? Not required here. This means owning NFA items is straightforward - residents only need to meet federal ATF requirements, cutting down on paperwork and potential headaches.

The state also backs gun owners with robust self-defense laws, including a "no duty to retreat" provision. This ensures residents can lawfully defend themselves without the obligation to retreat first.

One standout feature is South Dakota's Gold Card program. Qualified residents can skip the National Instant Criminal Background Check System (NICS) when purchasing firearms. This can significantly speed up the process, a major plus for collectors and frequent buyers of NFA items.

These legal advantages combine to make South Dakota a top choice for firearm enthusiasts, but the benefits don’t stop there.

Tax Benefits

On top of its gun-friendly laws, South Dakota sweetens the deal with its tax policies. Thanks to House Bill 1078, firearms are exempt from state taxes. Signed into law by Governor Gary Rhoden, this change eliminates an extra financial burden for gun owners. For those purchasing high-cost items like suppressors or short-barreled rifles, this means they only face federal excise taxes and any applicable local taxes - making ownership more affordable.

NFA Trust Support

South Dakota also simplifies the creation of NFA trusts. By removing additional registration requirements and minimizing compliance obstacles, the state allows trust creators to focus on federal rules and estate planning without worrying about conflicting state regulations.

Governor Gary Rhoden's strong support for Second Amendment rights has driven the adoption of multiple pro-gun laws, solidifying South Dakota's reputation as one of the best states for owning NFA items. Whether you're a collector or just someone looking for a hassle-free ownership experience, South Dakota has you covered.

State Comparison: Pros and Cons

When choosing a state for owning NFA items, tax policies play a big role in determining affordability. Beyond regulatory clarity, the tax implications on firearm purchases can significantly influence a state's appeal. Here's a quick look at how some states stack up in terms of tax-related benefits and drawbacks:

State	Pros	Cons
New Hampshire	No state sales tax on firearms	-
West Virginia	No taxes on firearm sales following legislation	-
Arkansas	Tax holidays for firearms and ammunition	Subject to state sales tax
Montana	No sales tax on any purchases, including firearms	-
South Dakota	Firearms no longer taxed after House Bill 1078	-

This table highlights the tax benefits and limitations in each state. States like New Hampshire, Montana, South Dakota, and West Virginia stand out by completely eliminating sales taxes on firearms, offering a clear cost advantage. Meanwhile, Arkansas provides occasional tax holidays but still imposes a general state sales tax on firearm purchases.

For buyers looking to save, states that remove or reduce firearm sales taxes offer a direct financial advantage, making them more appealing for NFA item ownership.

Conclusion

The outlook for owning NFA items in 2025 looks especially promising in states that balance constitutional carry laws, fewer regulatory hurdles, and favorable financial conditions. These top-ranked states simplify the ownership process by skipping extra state-imposed requirements while ensuring strong legal protections for firearm owners.

Beyond the legal benefits, the financial perks in these states are hard to ignore. Tax breaks and other fiscal incentives make NFA purchases more affordable, adding another layer of appeal.

As laws shift over time, it’s crucial to stay updated on both state and federal regulations. Keeping trust documentation in order and staying on top of compliance requirements will help ensure a smooth experience.

For those exploring NFA item ownership, these states provide an attractive mix of legal ease, financial savings, and streamlined regulations in 2025.

FAQs

What are the advantages of creating an NFA trust for firearm ownership in states like New Hampshire and Arkansas?

Setting up an NFA trust in states such as New Hampshire and Arkansas comes with several perks for owning items regulated under the National Firearms Act (NFA), like suppressors and short-barreled rifles (SBRs). One major advantage is that a trust allows multiple trustees to legally share access to these items without needing individual ATF approvals. This feature is particularly helpful for families or close-knit groups who want shared access.

Another benefit is that an NFA trust can make the transfer process for these regulated items much easier. Instead of dealing with the complexities of individual ownership requirements, the trust simplifies compliance with both federal and state laws, often cutting down on delays during ATF processing. States like New Hampshire and Arkansas, which are known for having firearm-friendly laws, can make this process even smoother when an NFA trust is in place.

How do tax policies in states like South Dakota and Montana affect the cost of owning NFA-regulated items?

State tax policies play a big role in determining how much it costs to own NFA-regulated items, like suppressors or short-barreled rifles. States such as South Dakota and Montana often attract attention because of their lower tax burdens, making it less expensive to purchase and maintain these items compared to states with higher taxes or extra fees.

For instance, these states generally don’t impose firearm-specific taxes and lack state-level income taxes, easing the financial load for NFA item owners. That said, it’s important to also weigh other factors, like local compliance rules and ATF processing times, when assessing overall affordability.

What self-defense protections do states like Montana and South Dakota provide for NFA item owners?

Montana and South Dakota enforce stand-your-ground laws, which allow individuals to defend themselves without the duty to retreat, as long as they are in a location where they have a legal right to be. These laws apply when someone reasonably believes that using force is necessary to prevent harm.

Both states are known for their strong support of gun rights, making them appealing to gun owners, including those with NFA-regulated items like suppressors or short-barreled rifles. That said, it's crucial to stay informed and adhere to local laws when using such items for self-defense.