The Kiplinger Tax Map: Guide to State Income Taxes, State Sales Taxes, Gas Taxes, Sin Taxes
Tool | Updated October 2019

State-by-State Guide to Taxes

Compare state tax rates and rules — on income, ordinary purchases, gas, sin products, property, and more — across the U.S.


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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 (see more details below, under “Oddball Tax”), which, even though it’s down from past peaks, more than outweighs the state’s modest real estate and sales tax levies. Alaska is one of among Kiplinger’s top ten most tax-friendly states.

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%.

Income Tax Range

Alaska has no income tax.

Motor Fuel Taxes

Gasoline: $0.1432 per gallon.
Diesel: $0.1431 per gallon
(both are the country’s lowest).

Property Taxes

Although taxing property is the primary method of raising revenues for most of the larger municipalities in the state, smaller municipalities favor a sales tax. This is primarily because the smaller incorporated areas lack a tax base large enough to support the property tax.

In Alaska, residents pay an average of $1,234 in taxes per $100,000 of assessed home value.

Vehicle Taxes

Municipalities determine the sales tax for vehicles and can also choose to levy an annual registration tax. This registration tax is separate from the vehicle’s registration fee and is based on vehicle class and model year. For example, a two-year-old car in Anchorage would have a motor vehicle registration tax of $150.

Sin Taxes

Cigarettes: $2 per pack by the state. 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 and hard cider: $1.07 per gallon
Wine: $2.50 per gallon
Liquor: $12.80 per gallon

Marijuana: $50 per ounce.

Taxes On Wireless Service


Inheritance and Estate Taxes


Oddball Tax

Not a tax, but the opposite: The state gives each legal resident who’s lived in the state for a full year an annual “Permanent Fund Dividend” that stems from the state’s taxation of energy production. The 2019 payout will be $1,606, well off the 2015 peak of $2,072.

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