State-by-State Guide to Taxes on Middle-Class Families
Tool | November 2020

Alaska State Tax Guide for Middle-Class Families

State tax rates and rules for income, sales, gas, property, cigarette, and other taxes that impact middle-class families.

Alaska

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The Bottom Line
Flag of Alaska

Most Tax-Friendly

In the Last Frontier, not only is there no state income tax, but the state actually pays legal residents an annual stipend, called the Permanent Fund Dividend. The state's real estate and sales taxes vary dramatically by location.

Income Tax Range

Alaska has no state 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

In Alaska, the median property tax rate is $1,182 per $100,000 of assessed home value.

Motor Fuel Taxes

Gasoline: 13.77¢ per gallon.
Diesel: 13.69¢ per gallon
(Both rates are the lowest in the country).

Sin Taxes

Cigarettes: $2 per pack; many localities add steep taxes (Juneau's is $3 per pack)
All other tobacco products: 75% of the wholesale price
Vapor products: No statewide tax, but several localities impose one

Beer $1.07 per gallon
Wine: $2.50 per gallon
Liquor: $12.80 per gallon

Marijuana: $50 per ounce for mature bud/flower, $15 per ounce for trim, $25 per ounces for bud/flower that is considered immature or abnormal. Clones are taxed at a flat rate of $1 per clone.

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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