Alaska state income tax rates

Alaska is one of only nine U.S. states with no income tax. That means employers don’t withhold state or local taxes from Alaska residents’ paychecks.

Alaska personal income tax rates for 2024

Alaska residents don’t have to pay state income taxes.

Who has to file Alaska state taxes?

If you own a business, Alaska levies taxes on any income earned from your company. The corporate tax rate ranges from 0 percent to 9.4 percent.

The state requires businesses to file annual returns, due 30 days after the filing date for federal income taxes. You might also have to make estimated payments quarterly. While you can file extensions for your return, you cannot get an extension on your tax bill.

If you need to file a return for corporate income taxes, you can file online through the Alaska Department of Revenue, Tax Division.

Alaska sales tax rate

Alaska doesn’t assess a statewide sales tax, but localities might impose sales taxes. The average sales tax in Alaska is 1.82 percent, according to the Tax Foundation. That’s a low rate compared with other states that often charge sales tax at both the state and local levels.

Other things to know about Alaska taxes

While Alaskans enjoy low taxes thanks to no state income tax and the low sales tax rate, the state does collect taxes in other ways:

• Property tax on owner-occupied properties in Alaska works out to 1.07 percent, according to the Tax Foundation.
• Alaska charges an effective gas tax of about $0.09 cents per gallon, according to a study by the Tax Foundation, which combines various fees and taxes to come up with a cents-per-gallon tax rate. Alaska’s effective gas tax is the cheapest in the nation.
• Alaska residents pay a $2 cigarette tax per pack of 20. Still, that’s much lower than New York’s $5.35 per pack.