Alaska Sales Tax Guide — No State Sales Tax (2026)

Last updated: 2026-03-27

What is the sales tax rate in Alaska?

How do you register to collect sales tax in Alaska?

How to register for sales tax in Alaska

Before you can collect sales tax, you need to register with the relevant local jurisdictions in Alaska. Here is the step-by-step process.

1. Alaska has no state sales tax, so no state-level registration is required
2. If selling in a local jurisdiction that imposes sales tax, register with that borough or city directly
3. Remote sellers can register through the Alaska Remote Seller Sales Tax Commission (ARSSTC) at arsstc.org for centralized compliance
4. Obtain an Alaska business license from the Division of Corporations, Business and Professional Licensing
5. Check each local jurisdiction for specific requirements — over 100 localities impose their own sales tax

How to collect sales tax in Alaska

Alaska does not impose a state sales tax, but there are still important considerations for businesses operating in the state.

1. Identify which local jurisdictions where you have sales tax obligations
2. Determine the local tax rate for each jurisdiction — rates range from 1% to 7.5%
3. Charge local sales tax at the point of sale for transactions within taxing jurisdictions
4. Track sales by jurisdiction for accurate remittance to each local authority
5. Accept and verify exemption certificates where applicable — requirements vary by jurisdiction

How to file and remit sales tax in Alaska

Alaska has no state sales tax, so no state-level sales tax returns are required. However, there may be other filing obligations.

1. File returns directly with each local taxing jurisdiction or use the ARSSTC centralized filing system for remote sellers
2. Filing frequency and due dates vary by jurisdiction — check with each borough or city
3. Report total sales, exempt sales, and taxable sales for each jurisdiction
4. Remit taxes to each jurisdiction by its specific deadline
5. Maintain records of all sales and tax collected for at least 3 years

What is exempt from Alaska sales tax?

Since Alaska has no state sales tax, general exemptions do not apply. However, related taxes may have their own exemptions.

• •Varies by local jurisdiction — there are no statewide exemptions since there is no state sales tax
• •Many jurisdictions exempt groceries and prescription drugs
• •Sales to the federal government are generally exempt
• •Fuel is often subject to separate excise taxes rather than local sales tax
• •Some jurisdictions exempt certain services or categories of goods

What are the highest combined sales tax rates in Alaska?

Because Alaska allows local jurisdictions to add their own sales taxes on top of the state rate, combined rates vary by location. Here are some of the highest combined rates in major Alaska cities.

What is use tax in Alaska?

Alaska has no state-level use tax. However, some local jurisdictions impose a use tax on goods purchased outside the jurisdiction for use within it. Check with specific boroughs and cities for local use tax obligations. Because there is no statewide framework, use tax compliance is handled entirely at the local level.

Does Alaska have marketplace facilitator rules?

Alaska does not have a statewide marketplace facilitator law since it has no state sales tax. However, the Alaska Remote Seller Sales Tax Commission (ARSSTC) has adopted rules requiring marketplace facilitators to collect and remit local sales taxes on behalf of third-party sellers for participating jurisdictions. Not all Alaska jurisdictions participate in the ARSSTC system.

What are the penalties for sales tax non-compliance in Alaska?

Penalties vary by local jurisdiction since Alaska has no state sales tax. Local jurisdictions typically charge interest on late payments and may impose penalties of 5-25% for late filing. The ARSSTC has its own penalty structure for remote sellers registered through the commission. Contact the specific jurisdiction for details on enforcement and penalty rates.

This is general information, not legal or tax advice. Tax rules change frequently — always verify with the official state agency. Sources: Alaska Department of Revenue.