Total Range for 2025
| Base state sales tax rate | 0% | Base state sales tax rate | Base state sales tax rate | Base state sales tax rate | Base state sales tax rate |
| Local rate range | 0%-7.5% | Base state sales tax rate | Base state sales tax rate | Base state sales tax rate | Base state sales tax rate |
| Total rate range | 0%-7.5% | Base state sales tax rate | Base state sales tax rate | Base state sales tax rate | Base state sales tax rate |
| Economic sales nexus threshold | Base state sales tax rate | Base state sales tax rate | Base state sales tax rate | Base state sales tax rate | |
| Transactions threshold | N/A | Base state sales tax rate | Base state sales tax rate | Base state sales tax rate | Base state sales tax rate |
| Sales tax return filing due date | Last day of following month | Base state sales tax rate | Base state sales tax rate | Base state sales tax rate | Base state sales tax rate |
The base state sales tax rate in Alaska is 0%, but since the local rates range from 0-7.5% the total sales tax range is 0-7.5%.
How to calculate your sales tax rate
Use our online sales tax calculator to determine the combined state and local sales tax rate for each location where you have a physical or economic nexus. Just enter your state and ZIP code to get your sales tax rate.
Example of using the sales tax rate in a tax calculation:
Let’s say you run a small book store in Juneau, Alaska (which has a local sales tax) and a customer purchases the following items:
Books bought: $8.00
Local Sales Tax Rate (Juneau Example): 1% (This will vary depending on the specific borough or municipality)
Sales Tax Calculation:
- Multiply the subtotal by the local sales tax rate: $8.00 (subtotal) x 1% (sales tax rate) = $0.08 (sales tax amount)
Total: $8.00 (subtotal) + $0.08 (sales tax) = $8.08
Nexus: Why do you need to collect sales tax in Alaska?
If you’re selling goods and services in Alaska then sales tax might apply! To determine your obligation, you need to understand “nexus,” which ties businesses to states for tax purposes.
Two types of nexus exist:
- Physical Nexus: Having a physical presence, like an office, warehouse, or employees in Alaska, triggers this type. If you do, you likely need to collect sales tax.
- Economic Nexus: This kicks in when your sales within Alaska exceed a certain economic threshold. Even without a physical presence, surpassing this threshold ($100,000) requires collecting sales tax.
In Alaska, there is also a transaction threshold of 200, which means that even if your sales aren’t over $100,000 if you’ve sold more than 200 items then you still need to pay sales tax.
Services
In Alaska, most services are exempt from sales tax. However, there are a few exceptions to keep in mind:
- Services directly tied to the sale of taxable goods: This includes services like software installation or assembly of furniture.
- Repair or maintenance services for taxable tangible personal property: For example, if you repair a taxable good like a lawnmower, the service might be taxable.
Goods
Since Alaska is one of the few states with no state-wide sales tax, there’s generally no sales tax levied on most tangible personal property bought or sold within the state. This applies to most physical items you encounter.
Exceptions:
- Specific local jurisdictions: Some Alaskan boroughs and cities might impose their own local sales taxes on certain goods. You’ll need to check with the specific location to determine if any local sales tax applies.
Freight/Shipping
- The cost of shipping itself isn’t subject to sales tax in Alaska. However, the shipping cost can be included in the taxable value of the goods being shipped.
- This means the total price used to determine any potential local sales tax might include both the product price and the shipping cost.
Clothing
- Alaska does not have a statewide sales tax but permits local sales and use taxes. Consequently, while clothing may be exempt in some areas, it is generally subject to local sales tax in cities and boroughs such as Juneau, the Kenai Peninsula Borough, and Nome.
Electronics
- In the areas which impose local sales tax rates, electronics are taxable
SaaS
- In certain areas, SaaS is taxable in Alaska.
Digital Products
- Generally exempt, depending on the area and if the invoke sales tax
Software
- Downloaded software: Generally considered exempt as a service.
- Pre-installed software: Typically viewed as part of the sale of the device itself and falls under the same tax treatment as the device (usually exempt).
How to register for sales tax in Alaska
Unlike most states, Alaska itself doesn’t have a statewide sales tax. Therefore, there’s no need to register for a sales tax permit with the state government.
However, some local jurisdictions within Alaska, specifically boroughs and municipalities, may impose their own local sales taxes.
Here’s how to navigate sales tax registration if you operate in a locality with a local sales tax:
- Identify Applicable Local Sales Tax: The first step is to determine if the location(s) where you’ll be conducting business have a local sales tax. You can usually find this information on the website of the borough or municipality you’ll be operating in.
- Local Registration Requirements: If a local sales tax applies, each jurisdiction might have its own registration process and requirements. They might have a dedicated website or department handling sales tax registration for businesses.
How to collect sales tax in Alaska
If you’re operating in a location with a local sales tax, here’s what you need to consider for sales tax collection:
- Identify Applicable Local Tax Rate
- The first step is to pinpoint the specific local sales tax rate that applies to your business location. This information can typically be found on the website of the borough or municipality.
- Charge the Local Sales Tax Rate
- If a local sales tax applies, you’ll need to factor that rate into your pricing and collect it from customers at the point of sale.
- Remit Collected Tax
- Each local jurisdiction might have its own process for remitting collected sales tax. This could involve filing returns and submitting payments electronically or by mail.
How to get a sales tax permit/license in Alaska?
In Alaska, there’s no need to obtain a sales tax permit/license because the state itself doesn’t have a statewide sales tax.
However, some Alaskan boroughs and municipalities may impose their own local sales taxes. If you’re operating in a location with a local sales tax, then you’ll need to register for that specific local sales tax and potentially obtain a permit, but it won’t be called a “sales tax permit”.
When are Alaska’s sales tax returns due?
There are no sales tax return deadlines in Alaska at the state level because Alaska itself doesn’t have a statewide sales tax. However, some Alaskan boroughs and municipalities may impose their own local sales tax return due dates.
Is anyone exempt from sales tax in Alaska?
Since Alaska doesn’t have a statewide sales tax, there are technically no exemptions at the state level. However, local jurisdictions might have specific exemptions for certain goods or services.
Luckily, most Alaskan boroughs and municipalities have their own websites. These websites typically have sections dedicated to taxes or finance where you might find information on local sales tax exemptions.
