This blog was last updated on December 22, 2025
The State of Alaska sales tax system is unique compared to other U.S. states. Alaska does not impose a statewide sales and use tax, making it one of the few states without a general retail sales tax. Instead, sales tax in Alaska is administered at the local level, where cities and boroughs are permitted to levy their own taxes under Alaska tax policy.
Because of this decentralized structure, Alaska tax rates can vary significantly depending on the municipality. Businesses operating in Alaska must understand Alaskan municipal taxes to remain compliant.
Does Alaska Have Sales Tax?
At the state level, the answer is no—Alaska does not have a state sales tax. However, many local jurisdictions impose a form of Alaska retail tax, which applies to sales of goods and services within their boundaries. These local sales taxes fund municipal services and infrastructure.
Examples of Alaska local taxing jurisdictions include Juneau, Ketchikan Gateway Borough and Sitka, Other municipalities, such as Anchorage and Fairbanks, do not impose a general sales tax but may levy specific excise-style taxes on items like alcohol, tobacco, or short-term lodging.
What’s Taxable Under Alaska Local Sales Taxes?
While Alaska business taxes do not include a statewide sales tax, many municipalities impose local sales and use taxes on common retail transactions.
Typical taxable items and services under Alaskan municipal taxes include:
- Clothing
- Digital goods
- Non-prescription medical items or drugs
- Rentals or leases
- Certain installation or repair services
Sales Tax Nexus in Alaska Locals
To streamline compliance for remote sellers, several Alaska local governments have entered into an intergovernmental agreement creating the Alaska Remote Seller Sales Tax Commission (ARSSTC). This commission provides centralized administration for participating jurisdictions that have adopted a uniform local sales tax code.
Under ARSSTC rules, remote sellers and marketplace facilitators may be required to collect sales tax in Alaska when statewide sales thresholds are met.
Alaska Local: Physical Nexus
Physical nexus is established when a business has a tangible presence in a local jurisdiction. Physical presence may trigger collection obligations for Anchorage sales tax, Juneau sales tax, or other local taxes, depending on the jurisdiction.
Alaska Local: Economic Nexus
The ARSSTC administers economic nexus for remote sellers. If your business has statewide gross sale of $100,000 or more from sales of property, products, or services delivered into Alaskayou may be required to register and collect applicable Alaskan municipal taxes through the commission.
More information is available on the ARSSTC Remote Seller Sales Tax Code webpage.
Alaska Local Sales Tax Exemptions
Certain sales in Alaska locals can be exempt from the sales and use tax requirements, though exemptions vary by municipality.
Common local exempt products and services include:
- Professional medical services
- Newspapers
- Certain building materials or construction services
- Select medical equipment
Entity or Use Based Exemptions
Additionally, Alaska locals exempt sales to certain entities from sales and use tax, including the following:
- Certain qualified nonprofit entities
- 501(c)(3) and 501(c)(4) organizations
- Senior citizens
- Retailers selling for resale
- Schools
- Government
How to Claim Sales Tax Exemption in Alaska
Because Alaska does not impose a statewide sales tax, there are no state-level exemption certificates. Sellers and purchasers must contact the applicable local jurisdiction directly to determine documentation requirements for exemptions under Alaskan municipal taxes.
Alaska Filing and Remittance Requirements
Since there is no state-level sales tax, businesses must file returns and remit tax directly to the applicable local jurisdiction or through the ARSSTC if the locality participates. Filing frequencies, tax rates, and reporting requirements vary by municipality.
Frequently Asked Questions – Sales Tax in Alaska
Do Alaska locals have sales tax holidays?
Yes, Alaska locals do offer sales tax holidays. However, many are limited to physical sales in the locality or seasonal.
Are there any special point of sale fees in Alaska?
Point-of-sale fees are fixed amount or rate-based assessments levied on certain products or services at the time of sale and paid by the final consumer at retail. At the state level, Alaska imposes a tire fee on new tires sold. With tired sold with studs over a certain weight having an additional fee. Locals do not generally impose point-of-sale fees.
Do Alaska locals apply sales tax to shipping charges?
Locals generally include shipping charges as a part of the sales price and therefore such charges are subject to tax.
For sourcing sales tax, are Alaska locals origin or destination based?
Alaska locals generally employ destination based sourcing.
How to Register for an Alaska Sales Tax License?
Alaska has no state level tax; taxpayers may contact the local jurisdiction or through AARSTC if applicable.
Additional Resources
For more information on U.S. sales tax compliance across all 50 states, check out our:
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