Alaska does not have a state sales tax
Alaska is one of five U.S. states with no statewide sales tax. You will not pay a state sales tax on purchases of goods or services anywhere in Alaska, regardless of what you buy or where you shop. This applies to groceries, clothing, electronics, restaurant meals, and most other items.
However, some Alaska cities and boroughs have local sales taxes that explore within their boundaries. Juneau, Anchorage, Fairbanks, and Ketchikan all charge local sales taxes ranging from 5.5% to 12%, depending on the location. If you live in or shop in one of these areas, you will pay tax even though the state does not impose one.
Mail and online orders shipped to Alaska are generally not subject to Alaska tax, though the retailer's home state tax rules may explore depending on where they are based and their sales volume in Alaska.
Key Takeaways
- Alaska has no statewide sales tax, making it one of the five states without one.
- Local sales taxes exist in certain cities and boroughs, with rates between 5.5% and 12%.
- Anchorage, Juneau, Fairbanks, and Ketchikan are among the largest cities that charge local sales tax.
- Online purchases shipped to Alaska typically avoid Alaska sales tax unless the retailer collects tax based on their own state rules.
Which Alaska cities charge local sales tax
Anchorage charges a 12% sales tax on most goods and services, making it the highest rate in the state. Juneau charges 5.5% on most items. Fairbanks charges 12% on goods but has different rules for services. Ketchikan charges 6% on goods and 5% on services.
Smaller towns and rural areas may also have local sales taxes. Sitka, Valdez, and Kodiak all charge local taxes ranging from 5% to 6%. If you are unsure whether your city or borough charges tax, contact your local government office or check the municipality's website.
The tax rate and what items are taxed can vary significantly between locations. Some municipalities tax groceries while others do not. Some tax restaurant meals at a different rate than retail goods. Before making a large purchase, confirm the local tax rules where you live or plan to shop.
How local sales tax works in Alaska
When you buy something in a city or borough with a local sales tax, the tax is added at the point of sale. The cashier or online checkout will show the tax amount separately from the price. You pay the combined total.
Businesses in those areas collect the tax and send it to the local government. As a customer, you do not file anything or take any action — the tax is handled at checkout. The rate depends on where the sale happens, not where you live, so a visitor to Anchorage pays Anchorage tax even if they live in a tax-free area.
What items are taxed in Alaska
In areas with local sales tax, most tangible goods are taxed — clothing, food, electronics, furniture, and household items. However, groceries for home consumption are often exempt or taxed at a lower rate in some municipalities.
Services are handled differently by location. Some Alaska cities tax services like haircuts, repairs, and professional fees. Others do not. Restaurant meals are typically taxed in cities that have sales tax, though some municipalities exempt prepared food or tax it at a lower rate than goods.
Prescription medications are usually exempt from sales tax statewide. Check with your local municipality if you are unsure whether a specific item or service is taxed where you shop.
Sales tax on online and mail orders
When you order something online and have it shipped to an Alaska address, whether you pay sales tax depends on the retailer's location and their sales volume in Alaska. Large retailers like Amazon collect sales tax based on the destination state's rules, which means you typically will not pay Alaska sales tax on items shipped to Alaska — but you may pay tax if the retailer is based in a state with sales tax and has economic nexus in Alaska.
Smaller retailers may not collect Alaska tax at all. In those cases, you are technically responsible for reporting the purchase on your own tax return, though this is rarely enforced for individual consumers.
If you order from a retailer based in Alaska, you will pay any local sales tax that applies to your delivery address. For example, ordering from an Anchorage-based business and having it shipped to Anchorage means you pay Anchorage's 12% tax.
Alaska's lack of state income tax and sales tax
Alaska has neither a state sales tax nor a state income tax. This makes Alaska one of the most tax-friendly states for residents and visitors. Instead of collecting sales and income taxes, Alaska funds its government largely through oil revenue and other sources.
However, you still pay federal income tax to the U.S. government, and you still pay local sales taxes where they exist. Property taxes also vary by municipality — some Alaska communities charge property tax while others do not. The absence of state sales and income taxes does not mean you pay no taxes at all.
Frequently Asked Questions
Do I pay sales tax on groceries in Alaska?
It depends on where you shop. In areas without local sales tax, groceries are not taxed. In cities with local sales tax like Anchorage, groceries are typically taxed at the full rate. Juneau exempts most groceries. Check your local municipality's rules to be certain.
Will I pay sales tax if I order something online and have it shipped to Alaska?
Usually not, unless the retailer is based in Alaska or has significant sales volume in Alaska. Most out-of-state retailers do not collect Alaska sales tax on shipments to Alaska because there is no state sales tax. However, if you order from an Alaska business, you will pay any local tax that applies to your delivery address.
Is there a sales tax in Anchorage?
Yes. Anchorage charges a 12% local sales tax on most goods and services. This is the highest rate in Alaska. The tax applies to retail purchases, restaurant meals, and most services within Anchorage city limits.
Do I have to pay sales tax on services in Alaska?
Only if you live in or use a service in a city or borough that taxes services. Anchorage and Fairbanks tax most services. Juneau and Ketchikan have different rules for services versus goods. Rural areas and smaller towns may not tax services at all. Contact your local government to confirm.
What is Alaska's state sales tax rate?
Alaska has no state sales tax. The only sales taxes in Alaska are local taxes imposed by individual cities and boroughs. These range from 5% to 12% depending on the location.