Alaska Sales Tax Calculator: Local Rates, Caps, and Exemptions

Alaska has no statewide sales tax, so the only sales tax you pay in Alaska is whatever the local borough or city charges where the sale takes place or where your order is delivered. More than 100 municipalities levy their own rates, running from roughly 1% up to about 7.5%, and in places where a city tax stacks on top of a borough tax the combined rate climbs higher still. What you actually owe depends entirely on the address.

What Local Rates Look Like

Under Alaska Statute 29.45.650, both boroughs and cities may levy and collect sales taxes.¹ When a city sits inside a borough that also taxes sales, both can apply to the same purchase.

A sampling of current rates from the Alaska Remote Seller Sales Tax Commission:²

Anchorage: 0% general retail sales tax. The state’s largest city charges no general sales tax, though it does impose a separate 5% tax on alcoholic beverages.
Fairbanks and the Fairbanks North Star Borough: 0%. Neither the city nor the borough levies a general retail sales tax.
Juneau: 5% on general retail sales, plus an additional 3% on alcoholic beverages.
Wasilla: 2.5%.³
Kodiak: 7% on general retail sales.
Kenai Peninsula Borough: 3% borough-wide, plus city taxes in Homer (4.85%), Seward (4%), and Kenai (3%).⁴
Ketchikan: 2.5% borough tax plus up to 5.5% city tax in summer months.
Bethel: 6% general retail plus a 15% tax on alcoholic beverages.

Stacking matters. A purchase in Homer carries 4.85% city tax plus 3% borough tax, totaling 7.85%. The stacking rules depend on local ordinances, since the statute allows boroughs to partially or fully exempt sources that a city within the borough already taxes.¹

Summer and Winter Rates

Several tourist-heavy communities raise their rates in summer and drop them in winter. Current examples from the ARSSTC rate sheets include:²

Ketchikan (city): 5.5% April through September, 3% October through March.
Haines Borough: 7% in summer, 4.5% in winter.
Craig: 7% April through September, 6% October through March.
Seldovia: 6.5% April through September, 2% October through March.
Pelican: 6% May through September, 4% October through April.

Timing changes the bill. A $1,000 purchase in Seldovia costs $65 in tax in June and $20 in December. ARSSTC publishes updated rate sheets on the first of each month, so always check the rate for the actual transaction date.⁵

Per-Transaction Tax Caps

Many Alaska municipalities cap the amount of sales tax collected on a single transaction, which matters most for cars, equipment, and construction materials. The cap limits the taxable portion of the sale price rather than the tax rate itself.

Wasilla collects its 2.5% tax only on the first $500 of any sale, so the maximum tax per transaction is $12.50 no matter how large the purchase.³ Juneau applies its 5% rate only to the first $14,300 of a single item or service, capping the tax at $715. A $30,000 purchase in Juneau carries the same $715 in tax as a $14,300 one.

Cap amounts vary, and not every municipality has one. For a major purchase, checking the local cap can save hundreds of dollars.

How to Calculate What You Owe

Because there is no state layer, the whole calculation turns on identifying the correct local rate.

Pin down the exact address of the transaction or delivery. Tax boundaries follow city and borough limits, and two addresses a few blocks apart can carry different rates.
Look up the rate on the current ARSSTC rate sheet. If a city sits inside a taxing borough, add both rates.⁵
Check whether the municipality caps the taxable amount per transaction. If so, apply the rate only to the capped portion.
Convert the combined rate to a decimal and multiply by the taxable amount.
Add the result to the purchase price.

A worked example: a $2,000 appliance in Juneau. The rate is 5% and the cap is $14,300, so the full price is taxable. $2,000 × 0.05 = $100 in tax, for a total of $2,100. If the same appliance cost $20,000, tax applies only to the first $14,300: $14,300 × 0.05 = $715, for a total of $20,715 rather than $21,000.

Online Orders Shipped to Alaska

After the 2018 Supreme Court decision in South Dakota v. Wayfair, states and localities could require out-of-state sellers to collect sales tax even without a physical presence in the jurisdiction.⁶ Alaska’s response was the Alaska Remote Seller Sales Tax Commission (ARSSTC), a single registration and compliance system so remote sellers don’t have to register separately with dozens of municipalities.

A remote seller has to start collecting once it reaches $100,000 in statewide annual gross sales into ARSSTC member jurisdictions.⁷ After that, the seller collects the correct local tax based on the delivery address and remits it through the commission. In practice, this is why most major online retailers now add the applicable local Alaska rate at checkout.

Not every Alaska locality participates in ARSSTC. If your delivery address is in a non-member jurisdiction, the retailer may not collect anything. That doesn’t automatically end your obligation; some municipalities require buyers to self-report use tax on untaxed purchases, though enforcement on individual consumers is rare.

Shipping charges count. Under ARSSTC’s Uniform Code, delivery charges on remote sales into member jurisdictions are generally part of the taxable sales price. A $50 item with $10 shipping into a 5% jurisdiction is taxed on $60. Rules for in-person sales where a local business delivers using its own vehicles depend on the specific municipal ordinance.

Exemptions You Can Actually Count On

State law mandates very few exemptions; almost everything is a local decision. A few categories show up across many municipalities:

Resale purchases. Goods bought for resale are widely exempt to prevent double taxation, and businesses need documentation. ARSSTC offers a Remote Reseller Sales Tax Exemption Certificate for sellers without a physical presence in the taxing jurisdiction.⁸
Prescription drugs and medical services. Many municipalities exempt these, though the specific scope varies.
Groceries. Some localities exempt unprepared food, plenty do not. It’s one of the least uniform exemptions in the state.
Fuel. The statute prohibits boroughs from taxing the physical transfer of refined fuel unless it is part of a retail sale.¹

Because exemptions are set locally, something exempt in one town may be taxed in the next. The ARSSTC exemption certificate directory and the local clerk’s office are the two places to confirm.⁹

Senior Exemption Cards

A number of Alaska municipalities issue sales tax exemption cards to older residents. Ketchikan Gateway Borough is representative: a resident age 65 or older who qualifies for the Alaska Permanent Fund Dividend and has lived in the borough for at least 180 consecutive days can apply for a card that exempts purchases for personal and spousal use from both borough and city sales tax.¹⁰ If you’re 65 or older and live in a taxing municipality, ask your borough or city clerk whether a similar program exists.

Deducting Alaska Sales Tax on Your Federal Return

Alaska has no state income tax, which actually tilts a federal tax decision in your favor. Itemizers on Schedule A can deduct either state and local income taxes or state and local sales taxes, but not both.¹¹ With no state income tax to deduct, the sales tax option is usually the one to take.

For the 2026 tax year, the total deduction for state and local taxes (the SALT cap) is $40,400 for most filers, or $20,200 for married taxpayers filing separately. The cap phases down for taxpayers with modified adjusted gross income above $505,000. You can calculate your deduction using actual receipts or the IRS optional sales tax tables. If you made a large purchase during the year, such as a vehicle or boat, keep the receipt; the tax on that single item may exceed what the tables would give you.

If You’re the One Collecting the Tax

Businesses that collect sales tax in Alaska act as agents for the municipality and face penalties for late filing or payment. Each jurisdiction sets its own structure, and they tend to be aggressive. Wasilla’s ordinance is a useful illustration: a 5% penalty on unpaid tax for each month or partial month of delinquency, capped at 20%, plus a $25 late filing fee and interest at an annual rate of 15%.¹² Wasilla also assesses a $50 violation fee for each month a return isn’t filed, and may suspend or revoke a business license if delinquent taxes remain unpaid beyond 30 days. Most jurisdictions allow a one-time penalty waiver if you pay in full within a short window of the due date, but only once.

1
Alaska State Legislature. Alaska Code 29.45.650 – General Sales and Use Taxes
2
ARSSTC. Member Jurisdictions
3
City of Wasilla. Sales Tax Information
4
Kenai Peninsula Borough. Sales Tax Overview
5
ARSSTC. Tax Rates
6
Supreme Court of the United States. South Dakota v. Wayfair, Inc., et al.
7
ARSSTC. FAQs for Sellers
8
ARSSTC. Business/Sellers
9
Alaska Remote Seller Sales Tax Commission. Exemption Certificate Directory
10
Ketchikan Gateway Borough. Senior Tax Exemptions
11
Internal Revenue Service. Publication 600, State and Local General Sales Taxes
12
City of Wasilla. Frequently Asked Questions