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Alaska Income Tax Calculator

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Overview of Alaska Taxes

Alaska has the lowest taxes in the country. There are no statewide income or sales taxes, but residents do pay some taxes. Retired? Use our Retirement Income Tax Calculator.

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Your Income Taxes Breakdown

Tax Type Marginal 
Tax Rate
Effective 
Tax Rate
2017 
Taxes
2018 Trump Taxes*
Federal
FICA
State
Local
Total Income Taxes
Income After Taxes

* These will be the taxes owed for the 2018 - 2019 filing season.

Under the Trump Tax Plan (2018-2019 filing season), your Federal Income Tax will be and your FICA will be .

Changes to Your Federal Income
Taxes Under the Trump Tax Plan

  • Your marginal federal income tax rate will
  • Your effective federal income tax rate will
  • Your federal income taxes will

Total Estimated Tax Burden

Income Tax $
Sales Tax $
Fuel Tax $
Property Tax$
Total Estimated Tax Burden $
Percent of income to taxes = %
$
  • Our Tax Expert

    Jennifer Mansfield, CPA Tax

    Jennifer Mansfield, CPA, JD/LLM-Tax, is a Certified Public Accountant with more than 30 years of experience providing tax advice. SmartAsset’s tax expert has a degree in Accounting and Business/Management from the University of Wyoming, as well as both a Masters in Tax Laws and a Juris Doctorate from Georgetown University Law Center. Jennifer has mostly worked in public accounting firms, including Ernst & Young and Deloitte. She is passionate about helping provide people and businesses with valuable accounting and tax advice to allow them to prosper financially. Jennifer lives in Arizona and was recently named to the Greater Tucson Leadership Program.

    ...read more
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Alaska state tax quick facts
  • Income tax: None
  • Sales tax: 0% - 7.5%
  • Property tax: 1.19% average effective rate
  • Gas tax: 12.3 cents per gallon of regular gasoline, 12.36 cents per gallon of diesel

America’s largest and northernmost state also has the lowest taxes in the nation. There are no statewide income or sales taxes in Alaska—in fact, residents receive annual checks from the state just for living there (the Permanent Fund Dividend). That doesn’t mean Alaskans pay no taxes at all, however.

There are still local sales taxes, which range from 0% to 7.5%, as well as property taxes. The average annual property tax payment is $3,198, the twelfth highest in the country. Residents must also pay gas taxes and “sin” taxes on alcohol and cigarettes. Below, we’ll take a closer look at each of these taxes, and explain what the Permanent Fund Dividend is all about.

Alaska Income Tax

There is no state income tax in Alaska. While residents do need to file a federal tax return, no state paperwork is required. In fact, come tax season, Alaskans can look forward to receiving their Permanent Fund dividend check (more on that in the next section). For that reason, April 15th is a good day for Alaskans to call their relatives in other states and say hello. To file your federal tax return, you can look into tax preparation software like TurboTax and H&R Block or hire a professional accountant.

Alaska Permanent Fund Dividend

The Alaska Permanent Fund was created in 1976, when the Trans-Alaska Pipeline was nearing completion. The fund was established as a way of setting aside a portion of the state’s significant oil and mineral royalties for future generations, and it has grown to a value of over $50 billion. Every year, the fund pays out a dividend to permanent residents of Alaska—to claim one, you must have lived there continuously for at least one year.

The amount of the dividend varies year to year, depending on revenues to the fund and other factors. In recent years, dividend checks have ranged from a low of $878.00 to a high of $2,072.00. Checks are sent to every Alaska resident, not just adults or income earners. That means that if you have dependents, you receive a Permanent Fund dividend for them as well. If you’d like to invest the money in their future, Alaska makes it easy to move the dividend straight to a 529 college savings plan.

Furthermore, Alaskan students attending college out of state can continue to claim a dividend, as long as they express an intention to return to the state after graduation. There is one downside, to the Permanent Fund dividend, however: the IRS considers it a taxable form of income, so it does need to be reported on your federal tax return.

Alaska Sales Tax

While there is no state sales tax in Alaska, some counties and cities do collect their own sales taxes. In fact, Alaska is the only state that does not have a statewide sales tax but does have local taxes (the other four states with no state sales taxes also do not have local sales taxes). The table below shows the total sales tax rates for every borough (the Alaskan equivalent of a county) and each of the major cities in Alaska.

Sales Tax Rates (Updated October 2017)

MunicipalityState RateMunicipality RateTotal Sales Tax
Aleutians East0.00%0.00%0.00%
Aleutians West0.00%0.00%0.00%
Bethel0.00%6.00%6.00%
Bristol Bay0.00%0.00%0.00%
Denali0.00%0.00%0.00%
Dillingham0.00%6.00%6.00%
Fairbanks North Star0.00%0.00%0.00%
Haines0.00%5.50%5.50%
Hoonah-Angoon0.00%3.00%3.00%
Kenai Peninsula0.00%3.00%3.00%
Ketchikan Gateway0.00%2.50%2.50%
Kodiak Island0.00%0.00%0.00%
Lake and Peninsula0.00%0.00%0.00%
Matanuska-Susitna0.00%0.00%0.00%
Nome0.00%5.00%5.00%
North Slope0.00%0.00%0.00%
Northwest Arctic0.00%0.00%0.00%
Petersburg0.00%6.00%6.00%
Prince of Wales-Hyder0.00%0.00%0.00%
Southeast Fairbanks0.00%0.00%0.00%
Valdez-Cordova0.00%0.00%0.00%
Kusilvak0.00%0.00%0.00%
Yukon-Koyukuk0.00%0.00%0.00%
CityState RateBorough + City RateTotal Sales Tax
Akiak0.00%0.00%0.00%
Akutan0.00%0.00%0.00%
Alakanuk0.00%4.00%4.00%
Ambler0.00%3.00%3.00%
Anaktuvuk Pass0.00%3.00%3.00%
Anchorage0.00%0.00%0.00%
Anderson0.00%6.00%6.00%
Angoon0.00%3.00%3.00%
Aniak0.00%2.00%2.00%
Atqasuk0.00%0.00%0.00%
Barrow0.00%0.00%0.00%
Bethel0.00%6.00%6.00%
Brevig Mission0.00%3.00%3.00%
Buckland0.00%6.00%6.00%
Chefornak0.00%2.00%2.00%
Chevak0.00%3.00%3.00%
Cordova0.00%6.00%6.00%
Craig0.00%5.00%5.00%
Delta Junction0.00%0.00%0.00%
Dillingham0.00%6.00%6.00%
Eek0.00%2.00%2.00%
Elim0.00%3.00%3.00%
Emmonak0.00%3.00%3.00%
Fairbanks0.00%0.00%0.00%
Fort Yukon0.00%3.00%3.00%
Galena0.00%3.00%3.00%
Gambell0.00%3.00%3.00%
Goodnews Bay0.00%3.00%3.00%
Gustavus0.00%3.00%3.00%
Homer0.00%7.50%7.50%
Hoonah0.00%6.50%6.50%
Hooper Bay0.00%4.00%4.00%
Houston0.00%2.00%2.00%
Huslia0.00%0.00%0.00%
Hydaburg0.00%6.00%6.00%
Juneau0.00%5.00%5.00%
Kachemak0.00%3.00%3.00%
Kake0.00%5.00%5.00%
Kenai0.00%6.00%6.00%
Ketchikan0.00%6.00%6.00%
Kiana0.00%3.00%3.00%
King Cove0.00%4.00%4.00%
Kivalina0.00%2.00%2.00%
Klawock0.00%5.50%5.50%
Kodiak0.00%6.00%6.00%
Kotlik0.00%3.00%3.00%
Kotzebue0.00%6.00%6.00%
Koyuk0.00%2.00%2.00%
Kwethluk0.00%5.00%5.00%
Lower Kalskag0.00%0.00%0.00%
Manokotak0.00%2.00%2.00%
Marshall0.00%4.00%4.00%
McGrath0.00%0.00%0.00%
Mountain Village0.00%3.00%3.00%
Napakiak0.00%4.00%4.00%
Napaskiak0.00%3.00%3.00%
Nenana0.00%4.00%4.00%
New Stuyahok0.00%0.00%0.00%
Nightmute0.00%2.00%2.00%
Nome0.00%5.00%5.00%
Noorvik0.00%4.00%4.00%
North Pole0.00%4.00%4.00%
Nuiqsut0.00%0.00%0.00%
Nulato0.00%0.00%0.00%
Nunapitchuk0.00%4.00%4.00%
Ouzinkie0.00%3.00%3.00%
Palmer0.00%3.00%3.00%
Petersburg0.00%6.00%6.00%
Pilot Station0.00%4.00%4.00%
Point Hope0.00%3.00%3.00%
Port Lions0.00%0.00%0.00%
Quinhagak0.00%3.00%3.00%
Russian Mission0.00%4.00%4.00%
Saint Marys0.00%3.00%3.00%
Saint Paul0.00%3.00%3.00%
Sand Point0.00%4.00%4.00%
Savoonga0.00%3.00%3.00%
Saxman0.00%6.50%6.50%
Scammon Bay0.00%4.00%4.00%
Selawik0.00%4.00%4.00%
Seldovia0.00%5.50%5.50%
Seward0.00%7.00%7.00%
Shishmaref0.00%2.00%2.00%
Shungnak0.00%2.00%2.00%
Sitka0.00%5.00%5.00%
Soldotna0.00%6.00%6.00%
St. Michael0.00%4.00%4.00%
Stebbins0.00%3.00%3.00%
Tanana0.00%2.00%2.00%
Thorne Bay0.00%6.00%6.00%
Togiak0.00%2.00%2.00%
Toksook Bay0.00%2.00%2.00%
Unalakleet0.00%5.00%5.00%
Unalaska0.00%3.00%3.00%
Upper Kalskag0.00%0.00%0.00%
Valdez0.00%0.00%0.00%
Wainwright0.00%0.00%0.00%
Wasilla0.00%3.00%3.00%
Whittier0.00%0.00%/5.00%0.00%
Wrangell0.00%7.00%7.00%

The rules for sales tax vary between municipalities. In some jurisdictions, sales tax rates vary by season. For example, in Whittier, the sales tax rate is 5% from April to September and 0% the rest of the year. There are few statewide exemptions, so expect products often exempted in other states (like food and prescription drugs) to be taxed in any Alaskan city or borough with a sales tax.

Alaska Property Tax

The most significant tax on residents of Alaska is the property tax. Statewide, average annual property tax payments are $3,198 per year, which is equal to an effective property tax rate (annual payments as a percentage of home value) of 1.19%. That is the 19th highest rate in the country. Rates vary widely between boroughs, however. In some, like the Aleutians East Borough, the average effective rate is less than 0.2%, while in others, like Fairbanks North Star, it is about 1.3%.

For those thinking about buying property in Alaska, our mortgage guide is a good place to start researching your mortgage options. It lays out the most important information about rates and other details for getting a mortgage in the Last Frontier.

Calculate Your Property Taxes: Alaska Property Tax Calculator

Alaska Gas Tax

Alaska has the lowest gas taxes in the country. According to the American Petroleum Institute, the state tax on regular gasoline is just 12.3 cents per gallon. The state taxes diesel at a rate of 12.36 cents per gallon.

Alaska Estate Tax

There is no estate tax in Alaska.

Alaska Alcohol Tax

Bad news for drinkers in Alaska: The Last Frontier has some of the highest alcohol excise taxes in the country. The state’s excise tax on beer is $1.07 per gallon. That’s about 10 cents a beer, and the second highest tax on beer in the U.S. (Although the tax on beer produced by microbreweries is less than a third of that, at 35 cents per gallon). Liquor is also heavily taxed: any beverage with higher than 21% alcohol by volume is taxed at a rate of $12.80 per gallon, the fifth highest rate in the country.

Alaska Cigarette Tax

Smokers in Alaska pay the 12th highest state cigarette tax in the country. A pack of 20 cigarettes is taxed at a rate of $2.00, or 10 cents per stick.

Photo credit: ©iStock.com/ad_foto
  • If Alaska were its own country, it would be the 18th largest country by area in the world. It has an area of 663,300 square miles.
  • The bear population of Alaska is approximately 135,000. Of these, the majority are black bears.
  • The average high temperature for the month of January in Fairbanks is 1.1 degrees Fahrenheit. The average low is -16.9 degrees.

Places with the Lowest Tax Burden

Are you curious how your tax burden stacks up against others in your state? SmartAsset’s interactive map highlights the counties with the lowest tax burden. Scroll over any county in the state to learn about taxes in that specific area.

Worse
Better
Rank County Income Tax Sales Tax Property Tax Fuel Tax

Methodology

Where you live can have a big impact on both which types of taxes you have to pay each year and how much money you spend on them. SmartAsset calculated the amount of money a specific person would pay in income, sales, property and fuel taxes in each county in the country and ranked the lowest to highest tax burden.

To better compare income tax burdens across counties, we used the national median household income. We then applied relevant deductions and exemptions before calculating federal, state and local income taxes.

In order to determine sales tax burden we estimated that 35% of take-home (after-tax) pay is spent on taxable goods. We multiplied the average sales tax rate for a county by the household income less income tax. This product is then multiplied by 35% to estimate the sales tax paid.

For property taxes, we compared the median property taxes paid in each county.

For fuel taxes, we first distributed statewide vehicle miles traveled down to the county level using the number of vehicles in each county. We then calculated the total number of licensed drivers within each county. The countywide miles were then distributed amongst the licensed drivers in the county, which gave us the miles driven per licensed driver. Using the nationwide average fuel economy, we calculated the average gallons of gas used per driver in each county and multiplied that by the fuel tax.

We then added the dollar amount for income, sales, property and fuel taxes to rank the counties to calculate a total tax burden.

Sources: US Census Bureau 2016 American Community Survey, Government Sources, Avalara, American Petroleum Institute, GasBuddy, UMTRI, Federal Highway Administration, SmartAsset