State-by-State Guide to Taxes

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%.

Alaska has no income tax.

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

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.

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.

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.

19.49%

None.

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.