State-by-State Guide to Taxes on Retirees
Tool | December 2020

Alaska State Tax Guide for Retirees

State tax rates and rules for income, sales, property, estate, and other taxes that impact retirees.

Alaska

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The Bottom Line
Flag of Alaska

Mixed Tax Picture

Although the Last Frontier has no state income or sales tax, it isn't necessarily a tax haven for retirees. High property taxes have a lot to do with the mixed tax picture for seniors. The state also has very high tax rates for beer and other alcoholic beverages. So don't cry in your beer when you get your property tax bill in the mail.

There is, however, one unique perk if you live in Alaska—the state sends all permanent residents (who have lived there for at least one year) an annual dividend check from its oil wealth savings account. The 2020 payout was $992, which goes a long way in balancing out any bad tax news.

Income Tax Range

Alaska has no state income tax.

Taxation of Social Security Benefits

Social Security benefits are not taxed by the state.

Tax Breaks for Other Retirement Income

Alaska has no income tax.

Sales Tax

Alaska is one of five states with no state sales tax. However, localities can levy sales taxes, which can reach 7.5%. Higher rates are found in locations that lack a property tax. But, according to the Tax Foundation, the statewide average is only 1.76%.

Real Property Taxes

Homeowners 65 and older (or surviving spouses 60 and older) are exempt from municipal taxes on the first $150,000 of assessed value of their property.

Annual Car Taxes and Fees

An annual vehicle registration tax based on the car's class and model year may be imposed by a municipality.

Estate and Inheritance Taxes

No estate or inheritance tax.

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