Alaska Sales Tax Guide 2025: A Step-by-Step Guide for Businesses

Alaska Sales Tax: 2025 Overview

Sales tax in Alaska does not include a statewide rate as of 2025, but local jurisdictions may impose sales taxes ranging from 1% to 7%, resulting in combined rates up to 7%. Alaska does not participate in the Streamlined Sales Tax initiative (SSUTA), leaving compliance to the discretion of individual municipalities.

Known for its decentralized tax system, Alaska requires businesses to navigate varying rules and rates imposed by local governments.

Alaska Sales Tax Due Date

In Alaska, the due dates for paying sales taxes depend on your assigned filing frequency, which is determined by local municipal requirements and your total taxable sales.

Filing Frequency	Criteria	Due Date
Monthly	Common for businesses with higher sales volumes, as required by local jurisdictions.	Due on the last day of the following month.
Quarterly	For businesses with moderate sales volumes, based on local tax codes.	Due on the last day of the month following the quarter (e.g., April 30 for Q1).
Annually	For businesses with lower sales volumes or as specified by local jurisdictions.	Due on January 31 of the following year.

Key Notes

• Alaska does not have a statewide sales tax, but local municipalities may impose their own sales tax requirements and deadlines.
• Late filings or payments may result in penalties and interest, so ensure compliance with local regulations.
• Payments and filings can be completed through the Alaska Remote Seller Sales Tax Commission (ARSSTC), if applicable.

State of Alaska Sales Tax Rate in 2025

Alaska does not impose a statewide sales tax, but local jurisdictions may levy taxes ranging from 1% to 7%, creating a combined rate up to 7% in some areas.

Tax Type	Rate	Description
State Sales Tax	None	Alaska does not have a statewide sales tax.
Local Sales Tax	Varies by Location	Additional sales tax imposed by municipalities, ranging from 1% to 7%, depending on the jurisdiction.

Notes

• The total sales tax rate depends entirely on local municipality rules.
• Alaska’s local sales tax structure often includes exemptions, such as for groceries or medical supplies, which vary by location.

2025 Alaska Local Sales Tax Rates Table

Below is a table highlighting the 20 largest municipalities in Alaska along with their respective local and combined sales tax rates:

Municipality	Local Sales Tax Rate	Total Sales Tax Rate
Bethel	6.0%	6.0%
Cordova	6.0%	6.0%
Fairbanks	0.0%	0.0%
Haines	5.5%	5.5%
Homer	4.5%	4.5%
Juneau	5.0%	5.0%
Kenai	3.0%	3.0%
Ketchikan	4.0%	4.0%
Kodiak	7.0%	7.0%
Nome	5.0%	5.0%
Palmer	3.0%	3.0%
Petersburg	6.0%	6.0%
Seward	4.0%	4.0%
Sitka	6.0%	6.0%
Soldotna	3.0%	3.0%
Valdez	6.0%	6.0%
Wasilla	2.5%	2.5%
Wrangell	5.5%	5.5%
Yakutat	4.0%	4.0%
Unalaska	3.0%	3.0%

Notes

• Sales tax rates in Alaska are determined by local municipalities, as there is no statewide sales tax.
• The total sales tax rate reflects only the local rate, as Alaska does not impose a state-level tax.
• Rates are subject to change, so it’s important to use a tax rate lookup and verify with the relevant local tax authorities or the Alaska Remote Seller Sales Tax Commission (ARSSTC).

Alaska Sales Tax Calculator Example with Customers in Multiple Locations

An online retailer based in California establishes economic nexus in Alaska by exceeding $100,000 in annual sales or 200 transactions, requiring them to collect and remit sales tax for purchases made by Alaska residents. The retailer makes sales to customers in multiple cities, each with different local tax rates.

Detail	Description
Business	Online retailer based in California with economic nexus in Alaska.
Customer Purchases	Customer A in Juneau $1,200 total, $800 taxable, $400 exempt (e.g., groceries or medications). Customer B in Sitka $900 total, $600 taxable, $300 exempt. Customer C in Kodiak $500 total, $400 taxable, $100 exempt.
Customer Locations	Juneau 5.0% local tax. Sitka 6.0% local tax. Kodiak 7.0% local tax.

Alaska Sales Tax Calculations

Customer	Taxable Amount	Local Tax Rate	Total Sales Tax Due
Customer A	$800	$800 × 5.0% = $40.00	$40.00
Customer B	$600	$600 × 6.0% = $36.00	$36.00
Customer C	$400	$400 × 7.0% = $28.00	$28.00

Total Sales Tax Due in Alaska

$40.00 (Customer A) + $36.00 (Customer B) + $28.00 (Customer C) = $104.00

Key Considerations for Businesses

• Location Accuracy: Confirm customer addresses to apply the correct local tax rates. For example, Juneau, Sitka, and Kodiak each have different local rates.
• Exemption Management: Properly classify exempt items like groceries or medications and maintain exemption certificates as needed.
• Tax Reporting: Track taxable and exempt sales by municipality for accurate reporting and timely remittance to the applicable local tax authorities through the Alaska Remote Seller Sales Tax Commission (ARSSTC).

Is there a Alaska SaaS sales tax?

Yes, Alaska does not impose a statewide sales tax, but local jurisdictions may apply sales taxes to Software as a Service (SaaS) products.

Category	Details	Examples
Statewide Sales Tax	Alaska does not have a statewide sales tax, so there is no state-level tax on SaaS products.	N/A
Local Sales Taxes	Local jurisdictions may impose sales tax on SaaS products, depending on their individual tax codes.	SaaS taxed in certain municipalities.
Requirements for Businesses	SaaS providers with nexus in specific Alaskan jurisdictions may need to collect and remit local sales tax.	Out-of-state providers meeting nexus thresholds.

Additional Considerations

• Taxability of SaaS products varies based on local tax codes, as Alaska does not regulate sales tax at the state level.
• Businesses can streamline compliance by getting started with Kintsugi for sales tax automation, ensuring accurate tax calculations and filings for Alaskan jurisdictions.
• For further guidance, consult the relevant local jurisdiction's tax authority or a tax professional.

Is there sales tax on clothing in Alaska?

No, Alaska does not impose a statewide sales tax on clothing, but some local jurisdictions may apply sales taxes to clothing purchases:

Category	Details
Statewide Tax	There is no statewide sales tax on clothing in Alaska.
Local Sales Taxes	Certain municipalities or local jurisdictions may impose sales taxes on clothing. Rates and exemptions vary by location.
Exemptions	Some local jurisdictions may exempt clothing from sales tax or offer tax-free periods, but this depends on local tax ordinances.

FAQs

Does Alaska have state tax?

No, Alaska does not have a statewide sales tax, but local jurisdictions may impose their own sales taxes, ranging from 1% to 7%.

How do you calculate sales taxes in Alaska?

To calculate Alaska sales tax, multiply the taxable amount by the local tax rate, which varies by jurisdiction. Ensure exemptions and specific local rules are applied correctly.

Sales Tax Nexus in Alaska

Sales tax nexus in Alaska establishes a business's obligation to collect and remit sales tax, which is determined by local jurisdictions since Alaska does not impose a statewide sales tax.

Type of Nexus	Description	Threshold/Criteria
Physical Nexus	Created by having a physical presence in a taxing jurisdiction in Alaska, such as a location, employees, or inventory.	Office, warehouse, storefront, or employees operating within a taxing municipality in Alaska.
Economic Nexus	Triggered by making substantial sales into a taxing jurisdiction, even without a physical presence.	More than $100,000 in gross sales or 200 separate transactions annually in a taxing jurisdiction.
Affiliate Nexus	Created through relationships with in-state businesses that help facilitate sales.	An affiliate based in a taxing jurisdiction promotes or sells products for the out-of-state retailer.
Marketplace Nexus	Applies to sales made through marketplace facilitators operating in Alaska’s taxing jurisdictions.	Facilitators must collect and remit sales tax on behalf of sellers in applicable jurisdictions.
Inventory Nexus	Triggered by storing inventory in a taxing jurisdiction, even if through a third party (e.g., warehouses).	Any physical inventory located within a taxing municipality in Alaska.
Employee or Agent Nexus	Having employees, independent contractors, or agents perform services in a taxing jurisdiction.	Sales or service activities conducted by representatives within a taxing municipality.

Notes

• Alaska does not impose a statewide sales tax; sales tax nexus is determined by individual local jurisdictions.
• Businesses with nexus in a taxing jurisdiction must register with that jurisdiction and collect sales tax as required.
• Marketplace facilitators are responsible for collecting and remitting sales tax for third-party sales made through their platforms in applicable jurisdictions.

FAQs

What is the sales tax nexus in Alaska?

Sales tax nexus in Alaska is established through physical presence or economic nexus, triggered by exceeding $100,000 in annual sales or 200 transactions in taxing jurisdictions.

Alaska Sales Tax Exemptions in 2025

In 2025, Alaska does not impose a statewide sales tax, but local jurisdictions may offer exemptions for groceries, prescription medications, and certain medical devices.

What is an Alaska state tax-exempt certificate?

An Alaska state tax-exempt certificate is a document that allows eligible buyers to make tax-exempt purchases in taxing jurisdictions within Alaska. It certifies that the buyer qualifies for an exemption under local sales tax laws, as Alaska does not impose a statewide sales tax.

• Purpose: Used for transactions exempt from sales tax, such as purchases by government agencies, nonprofit organizations, or for resale purposes.
• Usage: The buyer provides the certificate to the seller at the time of purchase to avoid paying sales tax.
• Retention: Sellers must keep a copy of the certificate on file to validate tax-exempt transactions in case of an audit.

Valid Reasons for Exemption

Exemption Category	Description	Examples
Resale	Items purchased for resale.	Products bought by retailers for inventory.
Nonprofit Organizations	Tax-exempt entities making qualified purchases.	Purchases by charitable organizations.
Government Agencies	Federal, state, or local government entities.	Office supplies bought by government offices.
Local-Specific Exemptions	Items exempt per local tax rules.	Groceries or medical devices in some jurisdictions.

What is exempt from sales tax in Alaska?

Nearly 75% of business owners struggle with understanding tax exemptions, which can lead to compliance risks. This table simplifies key sales tax exemptions in Alaska:

Category	Exempt Items
Essential Goods	Groceries, prescription drugs, and durable medical equipment used for home healthcare.
Government Entities	Purchases by federal, state, and local government agencies.
Nonprofit Organizations	Purchases by qualifying charitable and religious organizations for exempt purposes.
Services	Most professional services, including legal, medical, and consulting, are generally exempt from sales tax.
Occasional Sales	Casual or infrequent sales by individuals not engaged in regular business activities.
Resale	Items purchased for resale are exempt with the appropriate documentation.
Utilities	Certain utilities, such as residential heating fuel and electricity, may be exempt in specific municipalities.

Additional Notes

• Alaska does not impose a statewide sales tax; however, local jurisdictions may apply their own sales taxes and exemptions.
• Businesses must review tax rules for each local municipality where they operate.

Alaska Sales Tax Permits, Registration, and Filing in 2025

This section simplifies obtaining permits, filing returns, and meeting payment deadlines effectively for businesses with buyers in Alaska.

How do I get an Alaska sales tax permit?

To obtain a sales tax permit in Alaska, follow these steps:

• Register Online: Visit the Alaska Remote Seller Sales Tax Commission (ARSSTC) to start your registration for local jurisdictions that impose sales tax.
• Provide Business Details: Submit information such as your business name, address, type of business entity, and federal EIN or Social Security number.
• Pay the Registration Fee: Alaska does not charge a state-level fee for obtaining a sales tax permit, but local jurisdictions may have fees.
• Receive Your Permit: Once approved, you'll receive registration confirmation, allowing you to collect and remit sales tax for applicable local jurisdictions.
• Note: Alaska does not impose a statewide sales tax. Businesses must register for permits with local jurisdictions where they have nexus.

How do I submit an Alaska sales tax registration?

To register for Alaska sales tax, follow these steps. Alaska also offers customer support for registration through local municipalities or by contacting the Alaska Remote Seller Sales Tax Commission (ARSSTC) at (907) 790-5300.

Determine if You Need to Register

You must register for Alaska sales tax if your business:

• Has a physical presence (nexus) in a taxing municipality (e.g., office, warehouse, employees).
• Meets economic nexus thresholds by making over $100,000 in sales annually in a taxing jurisdiction.

Gather Required Information

Before starting, ensure you have:

• Business Information: Legal name, DBA (if applicable), federal EIN or SSN.
• Address Details: Physical and mailing addresses.
• Business Type: LLC, sole proprietorship, corporation, etc.
• Sales Estimates: Estimated taxable sales within each applicable municipality.
• Bank Account Information: For filing and payment setup.

Register Online

• Visit the Alaska Remote Seller Sales Tax Commission (ARSSTC) website.
• Create an account or log in.
• Select Register a New Business and follow the prompts to complete your sales tax registration.

Submit Application

• Review the form for accuracy before submitting.
• Once approved, you will be registered with the applicable municipalities and receive instructions for collecting and remitting sales tax.

Begin Collecting and Filing Sales Tax

• Start collecting sales tax and considering use tax obligations in applicable Alaskan jurisdictions.
• File and remit collected sales tax through the ARSSTC portal based on your assigned filing frequency (monthly, quarterly, or annually).

Alaska Sales Tax Filing

This section breaks down Alaska's sales tax requirements, including filing rules, taxable items, and permits.

What are the main Alaska filing requirements?

Alaska sales tax filing requirements depend on the local jurisdiction where sales tax is collected, as there is no statewide sales tax:

• Filing Frequency: Businesses must file monthly, quarterly, or annually based on the requirements of the local jurisdiction.
• Due Date: Returns are typically due on the last day of the month following the reporting period, but deadlines may vary by jurisdiction.
• Filing Method: Returns must be filed through the local jurisdiction or the Alaska Remote Seller Sales Tax Commission (ARSSTC) for remote sellers.
• Additional Requirements: Businesses must report all taxable and exempt sales and remit payment for collected taxes by the due date to avoid penalties and interest.

Filing Frequency Criteria

Filing Frequency	Criteria
Monthly	For businesses with significant sales tax collections, as determined by local jurisdictions.
Quarterly	For businesses with moderate sales tax collections, per local requirements.
Annually	For businesses with minimal sales tax collections, as specified by the local jurisdiction.

Note: Filing requirements and deadlines vary depending on the jurisdiction, so it’s essential to verify specific rules with the appropriate local tax authority. Remote sellers should follow ARSSTC guidelines.

What does Alaska sales tax apply to?

Alaska sales tax applies at the local jurisdiction level, as there is no statewide sales tax, and it can vary significantly across different boroughs and municipalities. Certain exemptions may apply, such as for groceries, prescription medications, and medical equipment.

Category	Description	Examples
Tangible Personal Property	Most goods, unless exempt by local laws.	Furniture, electronics, clothing (if taxable).
Taxable Services	Certain services may be subject to local sales tax.	Amusements, cleaning services, some repairs.
Digital Goods	Digital products transferred electronically.	Prewritten software, e-books, digital media.
Leases and Rentals	Rentals of equipment and property.	Equipment rentals, car rentals.
Prepared Foods	Meals and drinks sold by food service businesses.	Restaurant meals, takeout, catering.

Note: Alaska’s sales tax rules and rates are determined by local jurisdictions, so businesses must verify specific local requirements and exemptions. Remote sellers are subject to the Alaska Remote Seller Sales Tax Commission (ARSSTC) guidelines.

How to file sales tax in Alaska

To file sales tax in Alaska, follow these steps:

• Log in to ARSSTC: Access the Alaska Remote Seller Sales Tax Commission (ARSSTC) portal using your credentials.
• Complete the Sales Tax Return: Enter total taxable sales, exempt sales, and taxes owed for applicable local jurisdictions.
• Calculate Tax Due: The ARSSTC system automatically calculates the tax owed based on your entries and local tax rates.
• Submit Payment: Pay electronically through the ARSSTC portal or by other approved methods.
• Meet Deadlines: Returns are typically due by the last day of the month following the reporting period, but deadlines vary by jurisdiction.
• Maintain Records: Keep copies of filed returns and payment confirmations for audit purposes.

FAQs

What day is Alaska sales tax due?

Sales tax in Alaska is due based on local jurisdiction rules, typically on the last day of the month following the reporting period.

Does Alaska have a sales tax holiday?

No, Alaska does not have a statewide sales tax holiday, as it does not impose a state-level sales tax. Local jurisdictions may set their own tax-free periods.

Automate Your Alaska Sales Tax with Kintsugi

Managing Alaska sales tax compliance can be complex, from verifying local tax rates to tracking exemptions, ensuring accurate revenue reporting, and meeting filing deadlines. Kintsugi simplifies this process with powerful automation tools designed for modern businesses.

Feature	Description
Accurate Tax Rate Calculations	Automatically apply the correct state and local sales tax rates based on your customer’s location.
Exemption Management	Seamlessly identify and apply exemptions for groceries, prescription medications, and other qualifying items.
Effortless Filing	Streamline your tax reporting and filing process with integrations that calculate, track, and submit sales tax payments.
ERP and eCommerce Integration	Connect with platforms like Shopify, QuickBooks, Amazon, and more for seamless tax data management.

Let Kintsugi handle the complexities of Alaska sales tax so you can focus on growing your business. Visit our Product Platform and Pricing pages to learn more and get started today!