How taxes work in Alaska
Sales tax. Alaska levies no statewide sales tax, although some local jurisdictions add their own, which is why the average combined figure is not zero. No state sales tax; some municipalities levy local sales taxes.
Property tax. At an average effective rate of about 1.23%, a $350,000 home in Alaska carries roughly $4,305 a year in property tax before exemptions. That is near the middle of US states. Local assessors set actual bills, so verify with the county for any specific property.
Income tax. No state income tax and no state sales tax. Remember that 'no income tax' states fund services through other taxes — compare the full picture (sales, property) before assuming a move saves money.
Sales tax · average combined
Property tax · average effective
Chart: DailyFinance.tools · Rates are reviewed averages from our state tax dataset — your exact local rate may differ.
How Alaska compares with similar states
The states closest to Alaska on average combined sales tax. Property tax is the average effective rate; income tax shows the structure, not a single rate.
| State | Combined sales tax | Property tax | Income tax |
|---|---|---|---|
| Alaska (this page) | 1.82% | 1.23% | None |
| Delaware | 0% | 0.61% | Progressive |
| Montana | 0% | 0.83% | Progressive |
| New Hampshire | 0% | 1.77% | None |
| Oregon | 0% | 0.82% | Progressive |
| All-state average (51 entries) | 6.61% | 1.04% | — |
What this means for your money in Alaska
Alaska does not tax wages, but the revenue is recovered elsewhere. Property tax is the main lever: at an average effective rate of 1.23% (rank 16 of 51, against an all-state average of 1.04%), a $400,000 home carries about $4,920 a year — collected monthly through mortgage escrow, so it shows up as a higher monthly payment rather than an annual bill. Renters feel it indirectly through rent.
Read together: Alaska combines an average combined sales tax of 1.82% (rank 47 of 51), an average effective property tax of 1.23% (rank 16 of 51) and no state tax on wages. A household comparing states should compare all three against its own pattern — a high earner who rents weighs the income tax most; a homeowner on a fixed income weighs the property tax most.
Major cities in Alaska
Anchorage, Fairbanks, Juneau, Sitka, Ketchikan. Combined sales-tax rates differ between these cities — sometimes by more than a full percentage point inside the same state — because county and city layers stack on the state base. The Alaska sales tax guide breaks down the calculation and links the calculator where you can enter your exact local rate.
Calculators for Alaska residents
- Alaska Sales Tax Guide & Examples — what you actually pay, with worked amounts.
- Sales Tax & VAT Calculator — add or extract tax at any rate, including your exact Alaska local rate.
- Mortgage Calculator — include Alaska property tax in the monthly payment.
- Property Tax Calculator — estimate a specific property's bill.
- Self-Employment Tax Calculator — federal SE tax for Alaska freelancers.