Does Alaska have a state sales tax?

No, Alaska has no state sales tax. It is one of only five states in the U.S. without a statewide sales tax. However, over 100 local municipalities are authorized to collect their own local sales taxes.

What cities in Alaska have sales tax?

Over 100 Alaska municipalities levy local sales taxes, typically ranging from 2% to 5%. Major cities with sales tax include Juneau (5%), Sitka, Ketchikan, and Kodiak. However, the two largest cities—Anchorage and Fairbanks—do NOT have any sales tax.

Why doesn't Alaska have a state sales tax?

Alaska has never imposed a statewide sales tax since achieving statehood in 1959. The state has historically relied on oil revenue and other sources to fund government operations. The Alaska Constitution gives local governments broad authority to levy their own sales taxes to meet local needs.

Are groceries taxed in Alaska?

This depends on your location. There is no state sales tax on groceries. If your local municipality has a sales tax, groceries may be taxed at the local rate unless the municipality provides an exemption. Tax policies vary by locality.

Is clothing taxed in Alaska?

There is no state sales tax on clothing. Local sales taxes apply to clothing purchases if your municipality has a sales tax, unless the local government provides a specific exemption.

Do I pay sales tax on used cars in Alaska?

There is no state sales tax on vehicle purchases. However, if you buy a vehicle in a municipality with local sales tax, you may owe local sales tax on the purchase. Check with your local government for specific requirements.

Has Alaska ever had a state sales tax?

No. Alaska has never imposed a statewide sales tax since becoming the 49th state in 1959. While various proposals for a state sales tax have been discussed over the decades, none have been enacted.

Do I pay sales tax on online purchases in Alaska?

If the seller has nexus in a municipality with sales tax and you're located in that municipality, you may owe local sales tax. The Alaska Remote Sellers Sales Tax Commission (ARSSTC), established in 2019, helps coordinate collection from remote sellers.

Sales Tax Calculator

Alaska Sales Tax
Calculator

Calculate Alaska local sales tax instantly. Alaska has no state sales tax—only local municipal taxes that vary by location.

State Rate

0.000%

Select City

Amount before tax

About Alaska Sales Tax

State rate: 0.000%

Local rate in County: 0.000%

Combined rate in Fairbanks: 0.000%

State Rate

Local Tax

Varies

Max Local

7.5%

County

5.000%

Standard Rate

4,400

City	Standard Rate	Special District	Population
Fairbanks	0.000%	Standard Rate	31,732
Juneau	5.000%	Special District	31,572
Badger	0.000%	Standard Rate	19,033
Knik-Fairview	0.000%	Standard Rate	18,921
Hoonah	5.000%	Standard Rate	7,600
Klawock	5.000%	Standard Rate	7,200
Yakutat	5.000%	Standard Rate	6,000
Kake	5.000%	Standard Rate	5,500
Thorne Bay	5.000%	Standard Rate	4,500
Gustavus	5.000%	Standard Rate	4,400
Angoon	4.000%	Standard Rate	4,300
Saxman	5.500%	Special District	4,000
Nenana	4.000%	Standard Rate	4,000
Hydaburg	6.000%	Standard Rate	3,500
Huslia	3.000%	Standard Rate	2,900
Anchorage	0.000%	Standard Rate	2,896
Seldovia	6.000%	Special District	2,500
Old Harbor	4.000%	Standard Rate	2,200
Ouzinkie	4.000%	Standard Rate	1,500
Tenakee Springs	4.000%	Standard Rate	1,100
Pelican	5.000%	Standard Rate	900
Hyder	5.000%	Standard Rate	600
Port Alexander	5.000%	Standard Rate	500
College	0.000%	Standard Rate	127
Wasilla	2.500%	Standard Rate	110
Lakes	0.000%	Standard Rate	90
Tanaina	0.000%	Standard Rate	90
Sitka	5.000%	Special District	85
Ketchikan	5.500%	Special District	82
Kalifornsky	3.000%	Standard Rate	80
North Lakes	0.000%	Standard Rate	79
Kenai	6.000%	Standard Rate	78
Meadow Lakes	0.000%	Standard Rate	75
Palmer	3.000%	Standard Rate	70
Bethel	6.000%	Special District	65
Sterling	3.000%	Standard Rate	62
Kodiak	7.000%	Special District	59
Homer	7.850%	Special District	58
Soldotna	6.000%	Standard Rate	47
Unalaska	3.000%	Standard Rate	47
Utqiagvik (Barrow)	10.000%	Standard Rate	47
Gateway	0.000%	Standard Rate	46
Nikiski	3.000%	Standard Rate	45
Butte	0.000%	Standard Rate	42
Nome	5.000%	Standard Rate	39
Valdez	6.000%	Standard Rate	39
Sutton-Alpine	0.000%	Standard Rate	38
Ridgeway	0.000%	Standard Rate	36
Farmers Loop	0.000%	Standard Rate	35
Fishhook	0.000%	Standard Rate	34
Kotzebue	6.000%	Standard Rate	33
Petersburg	6.000%	Standard Rate	32
Seward	6.000%	Standard Rate	28
Haines	5.500%	Special District	26
Dillingham	5.000%	Standard Rate	24
North Pole	5.500%	Standard Rate	23
Cordova	6.000%	Standard Rate	22
Wrangell	7.000%	Standard Rate	21
Skagway	5.000%	Special District	12
Craig	6.000%	Standard Rate	12

Note: Rates shown are local municipal taxes only. Each municipality sets its own rate and exemptions. Anchorage and Fairbanks have 0% sales tax.

How to Calculate Sales Tax in Alaska

Sales Tax Calculation

Alaska

Example: Juneau Purchase (5% local tax)

Determine the purchase price

Purchase price (before tax) $500.00

Multiply by the local tax rate

$500.00 × 5.000% (0.05)

Local sales tax $25.00

Add to the original price

$500.00 + $25.00

TOTAL AMOUNT DUE $525.00

Thank you for your purchase

No State Tax!

Alaska is one of only 5 states with no state sales tax. Only local municipal taxes apply, and the two largest cities (Anchorage and Fairbanks) have 0% tax.

Location Matters

Check your municipality's rate. Local taxes range from 0% (Anchorage, Fairbanks) to 7.5% in some smaller communities.

Special Alaska Sales Tax Rules

Local Control

Article X, Section 1 of the Alaska Constitution gives cities and boroughs broad authority to levy and administer their own sales taxes. Over 100 municipalities currently collect local sales tax.

Important: Each municipality sets its own rate, exemptions, and administration. Rates typically range from 2% to 5%, but can go as high as 7.5%. Check with your local government for specific rules.

Major Cities with NO Sales Tax

Anchorage (pop. ~290,000) and Fairbanks (pop. ~32,000) — Alaska's two largest cities — do not levy local sales tax

Remote Seller Collection

Following the 2018 Wayfair decision, Alaska established the Remote Sellers Sales Tax Commission (ARSSTC)

•
Threshold: $100,000 in sales or 200 transactions to Alaska
•
Participating Cities: Over 100 municipalities participate in ARSSTC
•
Simplification: Single registration and filing for all participating jurisdictions
•
Established: 2019 via intergovernmental agreement

How Alaska Compares to Other No-Sales-Tax States

Alaska is one of only 5 US states with no state sales tax

0.000%

Oregon

No local tax

0.000%

Montana

No local tax

0.000%

Newhampshire

0.000%

Delaware

No local tax

0.000%

Oregon

0.000%

No local tax

Montana

0.000%

No local tax

Alaska

0.000%

+ Local taxes (0-7.5%)

Average local: ~1.8%

#50 of 50 states (lowest)

New Hampshire

0.000%

No local tax

Delaware

0.000%

No local tax

Alaska is the only no-sales-tax state that allows local governments to collect sales taxes. The other four states (Oregon, Montana, New Hampshire, Delaware) have no state or local sales taxes at all.

Got Questions?

Frequently Asked Questions

Alaska Sales Tax History

Alaska has never imposed a statewide sales tax. Here's a brief history:

Year	Event	Notes
2019	ARSSTC Established	Alaska Remote Sellers Sales Tax Commission created for online sales
1959-Present	No State Sales Tax	Local municipalities authorized to levy own sales taxes
1959	Statehood	Alaska became the 49th state on January 3, 1959

Note: While various proposals for a statewide sales tax have been discussed over the decades, Alaska has never enacted one. The state has historically relied on oil revenue and other sources to fund state government operations.

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Official AK Tax Info

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Disclaimer: This calculator provides estimates based on local Alaska sales tax rates as of January 2025. Alaska has no state sales tax. Local tax rates are subject to change by municipal ordinance. For official tax rates and specific guidance on your situation, please consult your local municipality or a qualified tax professional.

Not Legal or Tax Advice: The information provided on this page is for informational purposes only and should not be construed as legal or tax advice. Always verify current rates before making large purchases or business decisions.

Sources: Alaska Department of Commerce, Community, and Economic Development; Alaska Remote Sellers Sales Tax Commission (ARSSTC); Alaska Constitution Article X

Last updated: October 10, 2025