Alaska
Alaska is one of five US states without a statewide sales tax, despite this, the state of Alaska has municipalities that collect sales tax. Alaska state laws allow cities and counties to make their own sales tax ordinances and determine what is taxable. In turn, there are very few non-taxable items under Alaska state law.
Provinces
Alaska
Provinces
Alaska
About
Alaska
About
Alaska
Alaska
Alaska
Standard rate
Local municipalities may impose a sales tax, typically ranging from 1% to 7%, depending on the location.Sales of tax-free products and services
Local jurisdictions can define what products or services are exempt from local sales taxes. Some common tax-free products across the state include:- Food items for home consumption,
- Health-related services and medical products,
- Certain sales made by nonprofits may be exempt.
Who is obliged to register for Sales Tax in Alaska?
If a business operates in a municipality that imposes a sales tax, it must register locally. Businesses selling tangible goods or providing taxable services within local taxing areas need to obtain a sales tax permit from the local authority.
Standard rate
1% to 7%
Reduced rate
-
Threshold
$100,000
Threshold
On April 1, 2020, Alaska introduced thresholds for goods and digital services. Remote sellers are required to register and pay sales tax if their gross receipts exceed USD 100,000 in the state during the current or previous calendar year. As of January 1, 2025, the 200-transaction threshold, which was also previously introduced, has been abolished, leaving only the USD 100,000 threshold.Sales Tax payment and filing date
Typically, businesses file tax returns monthly or quarterly, depending on their sales volume. Tax payments and returns are usually due by the 15th or the last day of the following month. Local authorities provide clear deadlines in their tax registration materials.Penalty and Interest
Failure to file a return or make payment on time usually results in penalties and interest charges. These vary by locality but typically include:- Late filing penalty: A flat fee or percentage of the unpaid tax (e.g., 5% per month).
- Interest: Generally, accrues at a rate of 1% per month on the outstanding balance.
Sales Tax Holiday
Alaska does not offer statewide sales tax holidays. Some local jurisdictions may declare specific sales tax holidays for particular items (e.g., back-to-school supplies), but this is uncommon.Alaska Sales Tax nexus
For sales tax purposes, Alaska sets an economic Nexus threshold at $100,000 in gross sales or 200 transactions in the state during the current or previous calendar year.
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