Alaska Sales Tax

On this page you will find handy sales and use tax information about Alaska.

How to use this page:

We’ve pulled in the information from all our Charts for a consolidated view by state.  Here you can see the sales tax rates and if the state has remote seller nexus rules. You can also see any sales tax holidays or amnesty programs that may exist, though these do not apply to all states.

Below the chart you can find any News & Tip item we have published that relates to Alaska that you can filter by topic. This will help you get informed on current and past legislation that has passed in the state.

State Rate

0.000%

Range of Local Rates

0% – 7.85% A cap on the local sales/use tax applies on sales of any item of tangible personal property. Some local jurisdictions do not impose a sales tax.

Local Rates Apply to Use Tax

Yes/No Some of the cities and counties do apply use tax.

ECONOMIC NEXUS

4/1/2020 – Alaska Remote Seller Sales Tax Commission

Effective date unique for each municipality – get the details

MARKETPLACE NEXUS

4/1/2020 – Alaska Remote Seller Sales Tax Commission

Effective date unique for each municipality – get the details

City of Craig, Alaska Sales Tax Free Day

November 27, 2021

The conditions for the sales tax holiday are as follows:

  1. The promotion does not include the payment of rents and leases.
  2. All sales made on the tax-exempt day must be recorded like any other exempt sale, and the record from that day submitted with businesses quarterly sales tax return.
  3. Sales are limited to stock on hand items only.
  4. Participation in the promotion by local merchants is voluntary.

Click here for more information.

Administration Information
Streamlined Sales Tax Status

No - no state sales tax, but has local taxes

NUMBER OF TAXING AUTHORITIES

107

HOME RULE AUTHORITIES

ARSSTC collects for participating localities, otherwise remit to each locality

Sales Tax Sourcing (Intrastate)

Destination

Sales Tax Return Due Date

By midnight of the last day of the month following the filing period

Exemption Information
RESALE CERTIFICATE

TYPES OF EXEMPTIONS

Alaska does not impose a statewide sales tax and therefore does not have any statewide sales tax exemptions. Cities and boroughs are authorized to levy a sales and use tax on sales, rents, or services made within the boroughs or city. Local exemptions may be granted by ordinance.

History & Fun Facts
HISTORY

There is no state sales tax in Alaska; however, local governments – which include boroughs, the Alaska equivalent of counties, and municipalities – may levy up a sales tax. Municipal sales taxes are collected in addition to borough sales taxes, if any. Regulations and exemptions vary widely across the state. The two largest cities, Anchorage and Fairbanks, do not charge a local sales tax. The state capital, Juneau, has a 5 percent sales tax rate.

 

In reaction to the 2018 South Dakota v. Wayfair decision, local governments in Alaska signed an intergovernmental agreement to establish the Alaska Remote Sellers Sales Tax Commission. The Commission is comprised of local government members with current sales tax in place and that have adopted the Commission’s “Remote Seller Sales Tax Code & Common Definitions” that was passed on January 6, 2020. Under the code, remote sellers and marketplace facilitators are required to collect and remit local sales tax, provided they exceed the code’s economic threshold.

FUN FACTS
  • Over 100 municipalities (reporting) levy a general sales tax. Sales tax rates typically range from 2 percent to 5 percent.
  • Other types of local taxes levied are raw fish taxes, hotel/motel “bed” taxes, severance taxes, liquor and tobacco taxes, gaming (pull tabs) taxes and fuel transfer taxes.

State Notices & Resources for Remote Sellers

Use this state by state guide to find each state\’s initial guidance on how to proceed post-Wayfair, state resources such as FAQs, and any state activity such as going through a legislative process that impacts remote sellers.

Alaska Provides Guidance on Sales Tax for Remote Sales

The Alaska Remote Seller Sales Tax Commission provided information on what types of charges are in the “sales price” for a remote sale.

Economic Nexus State Guide

Key information such as effective dates, thresholds, and includable sales for out-of-state sellers making sales into states that have enacted economic nexus legislation both before and after the South Dakota v. Wayfair Supreme Court decision.

Craig, Alaska Designated November 27, 2021 as a Sales Tax Free Day

Craig, Alaska designated November 27, 2021 as a Sales Tax Free Day to give marketing opportunities to local merchants.

Western State Sales Tax Updates

Explore some important sales tax updates coming out of Western states so you can get caught up and make any changes as necessary to keep your company compliant.

Alaska Introduces Bill That Would Create State Sales Tax, Adopt Streamlined Sales Tax

Alaska would adopt a new two percent state sales and use tax and enter the Streamlined Sales and Use Tax Agreement under a new bill introduced in the Alaska House of Representatives on August 30, 2021.

Alaska Remote Seller Sales Tax Commission Approves Remote Seller Sales Tax Code

The Alaska Remote Seller Sales Tax Commission passed its Remote Seller Sales Tax Code that would apply in local municipalities that adopt it.

Three Years of South Dakota v. Wayfair: Local Tax Issues

Learn why managing local taxes is such a large challenge for taxpayers post-Wayfair and about local efforts to simplify compliance. This is part 4 of our 5 part series on three years of the Wayfair decision.

How the West Has Responded to Wayfair

A whirlwind of sales tax changes have swept across the Western region of the U.S. following the Wayfair decision. From novel approaches to economic nexus to shifting thresholds – keeping up with changes for remote sellers is no easy feat…

Alaska City to Impose Requirements for Remote Sellers and Marketplace Facilitators

The city of Nome, Alaska will require remote sellers and marketplace facilitators to collect and remit tax if they exceed certain economic thresholds, effective September 1, 2019.

House Introduces Online Sales Simplicity and Small Business Relief Act of 2018

On September 13, 2018, Rep. Jim Sensenbrenner (R-WI) and additional U.S. House members introduced the Online Sales Simplicity and Small Business Relief Act of 2018.

Remote Seller Resources

Comprehensive list of resources for remote sellers following the South Dakota v. Wayfair Supreme Court decision – including state notices, videos, articles, training opportunities, and more.

U.S. Supreme Court Issues Decision In South Dakota v. Wayfair

On June 21, 2018, the U.S. Supreme Court issued its decision in the South Dakota v. Wayfair case, ruling in favor of South Dakota and overturning Quill’s physical presence rule.

Record Number of Sellers Participate in 2017 MTC Amnesty Program

The volume of applicants for the 2017 online marketplace seller tax amnesty program overwhelmed the Multistate Tax Commission.

Multistate Tax Commission Announces Tax Amnesty Program for Online Sellers

The MTC organized a tax amnesty program for online sellers, running from August 17 to November 1, 2017. The voluntary disclosure program allowed sellers to start remitting sales tax on future sales without penalty or liability for unpaid, prior accumulated sales tax in 25 participating states.

No Regulation Without Representation Act of 2017 Introduced

Under the proposed House bill, a state may tax or regulate a person’s activity in interstate commerce only when the person is physically present in the state during the period in which the tax or regulation is imposed.

Congress Introduces Marketplace Fairness Act of 2017 and Remote Transactions Parity Act of 2017

Introduced on April 27, 2017, the Marketplace Fairness Act of 2017, if enacted, would authorize states meeting certain requirements to require remote sellers that do not meet a small seller exception to collect their state and local sales and use taxes.

Online Sales Simplification Act of 2016 Discussion Draft is Introduced

The proposed legislation would implement a “hybrid origin” approach for remote sales. States could impose sales tax on remote sales if the origin state participates in a clearinghouse.

No Regulation Without Representation Act of 2016 Introduced

Taking the opposite approach of the Marketplace Fairness Act and Remote Transactions Parity Act, the proposed bill would limit the ability of states to require remote sellers to collect use tax. However, the bill failed to pass.

Congress Approves Permanent Extension of Internet Tax Freedom Act

Congress approved a permanent extension of the Internet Tax Freedom Act, signed into law by the President 02/24/16. More…

Internet Tax Freedom Act Extended Through October 1, 2016

The President signed an act to extend the Internet Tax Freedom Act through 10/01/16. More…

Internet Tax Freedom Act Extended Until December 11, 2015

U.S. House of Representatives passed a provision to extend the Internet Tax Freedom Act until 12/11/15. More…

House Introduces Remote Transactions Parity Act of 2015

U.S. House of Representatives introduced the Remote Transactions Parity Act of 2015 on 06/15/15. More…

Senate Introduces Marketplace Fairness Act of 2015

On March 10, 2015, a bipartisan group of senators introduced the Marketplace Fairness Act of 2015.