Alaska Tax Burden
Alaska ranks #51 nationally for total tax burden with a combined rate of 3.00%.
Is Alaska a High-Tax State?
Alaska is a relatively low-tax state, ranking #51 out of 50 at 3.00%. Notably, Alaska has no state income tax — one of only a handful of states with this benefit. This makes it attractive for high earners, though the burden may shift to property or sales taxes.
Property taxes are a major factor here — at 0.73% effective rate, homeowners in Alaska pay significantly more than the national median of ~1.1%. On a $300,000 home, that's approximately $219,000/year in property taxes alone. With a median household income of $77,736, the average Alaska resident pays approximately $2,332 per year across all state and local taxes.
Tax Planning Tips for Alaska Residents
No state income tax: Alaska is one of the few states with zero income tax — your savings are most significant on earned income. Maximize W-2 salary, freelance income, and business profits while living here. However, be aware that the burden may shift to property taxes instead.
Property tax protest: With an effective rate of 0.73%, property tax appeals are worth pursuing in Alaska. Homeowners who formally protest their assessed value often achieve reductions of 5–15%. On a $300,000 home, that's a potential savings of $21,900/year. Check your county assessor's deadline — most states allow annual appeals.
High sales tax (1.76%): For major purchases — vehicles, appliances, furniture — calculate whether buying across state lines (if near a border) saves meaningful money. A $30,000 car purchase costs an extra $52,800 in sales tax in Alaska.
For retirees: With no income tax, retirement account withdrawals (401k, IRA, pensions) are not taxed at the state level — a significant benefit for retirees with substantial savings.
All 27 Counties in Alaska
| Rank | County | Property Tax | Income Tax | Sales Tax | Total Burden | Nat'l Rank |
|---|---|---|---|---|---|---|
| 1 | Anchorage Municipality | 1.31% | 0.000% | 1.76% | 5.55% | #2766 |
| 2 | Fairbanks North Star Borough | 1.25% | 0.000% | 1.76% | 4.83% | #2930 |
| 3 | Kodiak Island Borough | 1.04% | 0.000% | 1.76% | 4.63% | #2972 |
| 4 | Juneau City and Borough | 0.94% | 0.000% | 1.76% | 4.54% | #2989 |
| 5 | Matanuska-Susitna Borough | 1.15% | 0.000% | 1.76% | 4.52% | #2992 |
| 6 | Nome Census Area | 1.52% | 0.000% | 1.76% | 4.51% | #2994 |
| 7 | Haines Borough | 0.89% | 0.000% | 1.76% | 4.34% | #3034 |
| 8 | Chugach Census Area | 1.05% | 0.000% | 1.76% | 4.21% | #3055 |
| 9 | Dillingham Census Area | 1.48% | 0.000% | 1.76% | 4.15% | #3060 |
| 10 | Ketchikan Gateway Borough | 0.71% | 0.000% | 1.76% | 3.68% | #3103 |
| 11 | Wrangell City and Borough | 0.65% | 0.000% | 1.76% | 3.52% | #3117 |
| 12 | Aleutians West Census Area | 0.78% | 0.000% | 1.76% | 3.50% | #3119 |
| 13 | Bristol Bay Borough | 0.99% | 0.000% | 1.76% | 3.24% | #3131 |
| 14 | Southeast Fairbanks Census Area | 0.85% | 0.000% | 1.76% | 3.09% | #3133 |
| 15 | Kenai Peninsula Borough | 0.66% | 0.000% | 1.76% | 3.01% | #3135 |
| 16 | Petersburg Borough | 0.67% | 0.000% | 1.76% | 2.99% | #3137 |
| 17 | Sitka City and Borough | 0.51% | 0.000% | 1.76% | 2.85% | #3143 |
| 18 | Hoonah-Angoon Census Area | 0.52% | 0.000% | 1.76% | 2.63% | #3147 |
| 19 | Yukon-Koyukuk Census Area | 1.01% | 0.000% | 1.76% | 2.41% | #3152 |
| 20 | Skagway Municipality | 0.33% | 0.000% | 1.76% | 2.38% | #3154 |
| 21 | North Slope Borough | 0.75% | 0.000% | 1.76% | 2.33% | #3157 |
| 22 | Yakutat City and Borough | 0.84% | 0.000% | 1.76% | 2.25% | #3161 |
| 23 | Prince of Wales-Hyder Census Area | 0.46% | 0.000% | 1.76% | 2.22% | #3162 |
| 24 | Kusilvak Census Area | 0.24% | 0.000% | 1.76% | 1.05% | #3194 |
| 25 | Denali Borough | 0.17% | 0.000% | 1.76% | 1.03% | #3195 |
| 26 | Copper River Census Area | 0.08% | 0.000% | 1.76% | 0.86% | #3206 |
| 27 | Northwest Arctic Borough | 0.14% | 0.000% | 1.76% | 0.84% | #3208 |
Alaska Tax Burden Summary
Alaska ranks #51 for total tax burden in the United States with a combined effective rate of 3.00%. Residents earning $100,000 pay approximately $3,000 in total state and local taxes — including $219,000 in property tax on a $300,000 home, $0 in state income tax, and an estimated $70,400 in sales tax on $40,000 of taxable spending. While Alaska has no state income tax, residents face higher property taxes that partially offset the income tax savings. The absence of income tax makes Alaska particularly attractive for high earners, retirees drawing from 401(k) accounts, and business owners with significant pass-through income.
With a median household income of $77,736 and a population of 734,821, Alaska has 27 counties with tax burdens ranging from 0.84% to 5.55%. As a relatively low-tax state, Alaska offers meaningful savings compared to the national average, especially for those relocating from high-tax states in the Northeast or West Coast.