Alaska is one of five US states with no statewide sales tax. Instead, it has a web of local taxes set by boroughs and municipalities. With these combined local taxes, the effective Alaska sales tax rate ranges from 0%–7%, depending on where a transaction takes place.

Below, we’ll go over how Alaska’s tax structure works, what rates apply in major Alaskan cities and boroughs, and how to calculate what your business owes on a given transaction.

Key takeaways

• Alaska levies no state sales tax, but local borough and municipal taxes can reach as high as 7.85% when combined.

• Normal economic nexus thresholds don’t apply in Alaska. Whether you have an obligation in a given Alaska locality depends on that locality’s rules.

• Businesses that sell across multiple Alaska jurisdictions can face separate registration, filing, and exemption rules for each taxing locality.

What is the Alaska sales tax rate?

Alaska has no statewide sales tax. It’s one of five US states that don’t have one, along with Delaware, Montana, New Hampshire, and Oregon.

This means local sales tax rates are key for pricing transactions in Alaska. Many boroughs and municipalities in Alaska levy their own sales taxes, and the tax rate on any given transaction depends on where it takes place. In 2026, combined rates across Alaska ranged from 0.00% in unincorporated areas to 7.00% in some municipalities, with a population-weighted average of 1.82%.

How does sales tax in Alaska work for businesses that collect tax?

Because it doesn’t have a state sales tax, Alaska also doesn’t have a single centralized sales tax authority. Instead, each taxing jurisdiction sets its own rate, defines its own taxable goods and services, and runs its own registration and filing requirements. There’s no statewide definition of what constitutes a “taxable transaction,” and there are few state-mandated tax exemptions. Services that are taxable in Juneau might be exempt in Sitka, for example. Each jurisdiction warrants its own review if you’re selling across multiple locations in the state.

Remote sellers

Remote sellers can’t rely on typical economic nexus thresholds because there’s no statewide sales tax. Instead, in 2019, the Alaska Remote Seller Sales Tax Commission (ARSSTC) was created for municipalities to coordinate sales tax collection for remote sales into Alaska. ARSSTC gives remote sellers a single registration and filing path. It doesn’t cover every taxing locality in the state, but participation is growing.

Whether your business has an obligation in a given Alaska locality depends on that locality’s rules. Many smaller jurisdictions haven’t yet explicitly addressed remote sellers; check ARSSTC regulations for the latest compliance rules.

What are the local sales tax rates in Alaska?

Local sales taxes in Alaska come from two sources: boroughs and municipalities. In some areas, both borough and municipality taxes apply.

In other areas, such as unincorporated borough territory, there is no local tax at all, and the effective rate is 0%. The combined tax rate is 0% in Anchorage and Fairbanks—Alaska’s two most populous cities—which means a large portion of in-state transactions carry no sales tax at all.

What are Alaska’s sales tax rates by city?

Alaska’s cities set their own municipal sales tax rates. Since cities are located within boroughs, transactions made within a given city might be subject to both a municipal and a borough tax. In some cases, such as Sitka, the borough and the city have a unified government and a combined municipal and borough tax rate.

Here are the minimum combined sales tax rates for Alaska’s major cities.

What are Alaska’s sales tax rates by borough?

In Alaska, boroughs serve the same administrative function as counties do elsewhere. Large portions of the state fall within the “Unorganized Borough,” which has no borough-level government and thus no borough-level sales tax. Other highly populated boroughs have set a 0% borough sales tax rate. As stated previously, there are also multiple city-boroughs in the state, which apply a single tax rate for both city and borough.

Minimum combined sales tax rates for some of Alaska’s boroughs are listed below.

How should businesses calculate overall sales tax rates in Alaska?

To calculate the sales tax rate for a transaction made in Alaska, start by determining the applicable municipal and borough tax rates. Then add them together to find the full rate.

Here are a few data points to double-check:

• Transaction location: Many Alaska jurisdictions that have addressed remote sales use destination-based sourcing. That means the delivery address determines the sales tax rate, rather than your location, as the seller. With Stripe’s sales tax calculator, you can enter a transaction location and sale amount, and get the applicable combined rate without manually cross-referencing borough and city tax tables.

• Exemptions: Borough and city codes usually determine their own exemptions. You need to check the rules in the borough or municipality where you do business by contacting the local tax authorities directly.

• Current rates: In Alaska, local sales tax rates change frequently through voter initiatives and municipal ordinances. The ARSSTC member portal and individual borough websites publish current rates, so you can verify them before you file.

How Stripe Tax can help

Stripe Tax reduces the complexity of tax compliance so you can focus on growing your business. Stripe Tax helps you monitor your obligations and alerts you when you exceed a sales tax registration threshold based on your Stripe transactions. In addition, it automatically calculates and collects sales tax, value-added tax (VAT), and goods and services tax (GST) on both physical and digital goods and services—in all US states and in more than 100 countries.

Start collecting taxes globally by adding a single line of code to your existing integration, clicking a button in the Dashboard, or using our powerful application programming interface (API).

Stripe Tax can help you:

• Understand where to register and collect taxes: See where you need to collect taxes based on your Stripe transactions. After you register, switch on tax collection in a new state or country in seconds. You can start collecting taxes by adding one line of code to your existing Stripe integration or add tax collection with the click of a button in the Stripe Dashboard.

• Register to pay tax: Let Stripe manage your global tax registrations and benefit from a simplified process that prefills application details—saving you time and simplifying compliance with local regulations.

• Automatically collect tax: Stripe Tax calculates and collects the right amount of tax owed, no matter what or where you sell. It supports hundreds of products and services and is up-to-date on tax rules and rate changes.

• Simplify filing: Stripe Tax seamlessly integrates with filing partners, so your global filings are accurate and timely. Let our partners manage your filings so you can focus on growing your business.

Learn more about Stripe Tax, or get started today.