Property owners in Fairbanks pay a 2026 areawide property tax mill rate of 10.677 to the Fairbanks North Star Borough, with additional mills added if the parcel sits inside a service area. There is no general sales tax from the borough or the City of Fairbanks, though the City of North Pole charges 5.5% inside its limits. The borough also collects excise taxes on short-term lodging, tobacco, alcohol, and marijuana.
Property Tax Rate for 2026
Property tax is the borough’s main revenue source, authorized under Alaska Statute AS 29.45.010.1Alaska Legislature. Municipal Taxation The borough’s Assessing Department sets the market value of every property inside the borough,2Fairbanks North Star Borough. Assessing and that assessed value is the base your tax is calculated against.
A mill rate is one dollar of tax per $1,000 of assessed value. The 2026 total areawide rate of 10.677 includes a general government portion of 4.808 mills, with the remainder going to education and other areawide services.3Fairbanks North Star Borough. Resolution No. 2026-20 Every property inside the borough pays at least that rate. A $250,000 home at the areawide rate alone owes roughly $2,669 for the year.
Service Area Surcharges
Properties inside a service area pay additional mills for things like road maintenance and volunteer fire protection, and those add-ons swing widely. Smith Ranch adds just 0.310 mills. Chena Goldstream Volunteer Fire adds 2.205 and University Fire adds 2.878. At the top end, Ballaine Lake Sewer and Water adds 14.076 mills and McCloud adds 14.857.3Fairbanks North Star Borough. Resolution No. 2026-20
Two homes with the same assessed value can owe very different amounts. That $250,000 home in the Ballaine Lake Sewer and Water district pays about $6,188 a year, more than double the areawide-only bill. Check your tax bill or the borough website to confirm which service areas apply to your parcel.
Sales Tax in Fairbanks
Alaska has no statewide sales tax, though it lets local governments impose their own.4Department of Commerce, Community, and Economic Development. Alaska Sales Tax Information Neither the Fairbanks North Star Borough nor the City of Fairbanks has one. You pay sticker price at the register.
The City of North Pole, which sits within the borough, is the exception. It charges a 5.5% city sales tax on transactions inside its corporate limits, capped at $16.50 per individual sale.5City of North Pole. Taxes Some items are exempt. Ask the retailer if you’re unsure.
Excise Taxes
The borough collects targeted excise taxes on specific products and activities rather than on general retail sales.6Fairbanks North Star Borough. Sales / Excise Tax Information
Short-term lodging, including hotels, motels, and vacation rentals, carries a 10% room tax on the daily rate. Long-term apartment rentals are not subject to it. Tobacco products are taxed at 20% of the wholesale price, collected before the product reaches the consumer. Alcoholic beverages and marijuana products are also taxed at wholesale, with distributors and wholesalers remitting rather than retailers collecting at the point of sale.
Exemptions That Lower Your Bill
Alaska law requires several property tax exemptions that most homeowners qualify for in some form. None are automatic. You have to apply, and for the 2026 tax year the enrollment window runs from July 1, 2025, through February 14, 2026. A late extension can be requested between February 15 and March 14, 2026, but only if the extension form is submitted together with the exemption application.7Fairbanks North Star Borough. 2026 Homeowner Property Tax Exemptions
Senior Citizen and Disabled Veteran
Under AS 29.45.030(e), residents aged 65 or older and disabled veterans with a service-connected disability of 50% or higher are exempt from tax on the first $150,000 of their primary residence’s assessed value.8Justia Law. Alaska Statutes 29.45.030 – Required Exemptions Widows and widowers aged 60 or older of someone who qualified under either category are also eligible. The property has to be your primary residence and permanent home.
First-time senior applicants need proof of age such as a current driver’s license, state ID, passport, or military ID.9Fairbanks North Star Borough. Facts for Senior Citizen/Widow Widower Exemption Program Disabled veterans submit their VA disability rating letter each year during the enrollment window. Only one exemption applies per property, so if both spouses qualify under different categories, you pick one.
Residential Homeowner
Any qualifying homeowner using the property as a primary residence can apply for the residential exemption, which covers up to $50,000 of assessed value, with a maximum of $10,000 applied to service area assessments. It cannot be stacked with the senior or veteran exemption on the same property.
Other Exemptions
The borough also offers exemptions for volunteer firefighters and emergency medical services personnel, and the Irving Hernandez exemption. All share the February 14, 2026, enrollment deadline.7Fairbanks North Star Borough. 2026 Homeowner Property Tax Exemptions
When Property Tax Is Due
The borough splits the annual bill into two installments. The first half is due on the first business day in September. The second half is due on the first business day in November.10Fairbanks North Star Borough. FAQ – Tax Bill and Payment Information
Missing either deadline triggers a penalty of up to 5% on the unpaid balance of that installment, plus interest at 8% per year running from the due date.11Fairbanks North Star Borough. Pay Property Tax Online On a $3,000 installment, one missed deadline can add $150 in penalty alone, with interest accruing on top. Mailed payments must be postmarked on or before the due date; the borough won’t take responsibility for delayed postmarks.
You can pay online by credit card or e-check through ACI Payments, which charges a convenience fee the borough doesn’t receive. Phone payments go through 800-272-9829 using jurisdiction code 1206. Checks can be mailed to P.O. Box 71320, Fairbanks, AK 99707, or paid in person at 907 Terminal Street.11Fairbanks North Star Borough. Pay Property Tax Online A returned check adds a $30 fee on top of any penalties already running. After paying, confirm the payment posted to the right parcel, especially if you own more than one property.
Appealing Your Assessment
If your assessed value looks too high or wrongly classified, you can appeal to the borough’s Board of Equalization. The window is short. A written appeal has to reach the Assessor within 30 days of the date on your assessment notice.12Fairbanks North Star Borough. Board of Equalization (BOE)
You carry the burden of proof. You need to show by a preponderance of evidence that the valuation is unequal, excessive, or otherwise wrong. Testimony is accepted in person, by teleconference, or by written affidavit.
If a medical condition or similar event beyond your control caused you to miss the 30-day window, you can request a deadline extension within 30 days after the original appeal period closed, supported by an affidavit and documentation. At that stage the board decides only whether your reason was valid, not whether your valuation was wrong.