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Alaska Sales Tax Calculator 2026 (No State Tax, Local Only)

Last updated: May 2026  ·  Sources: Tax Foundation, Avalara, Alaska Dept. of Revenue

Alaska: No State Sales Tax (Local Only) Alaska has no state sales tax — but it's not a pure no-tax state. Alaska allows municipalities to levy local sales taxes independently, and they vary wildly: Anchorage (the largest city, 40% of the state's population) has no local sales tax. Ketchikan charges 7.5%. Fairbanks charges nothing. Many small rural Alaskan communities charge 4%–6%. The statewide average is 1.82%, pulled down by Anchorage's zero rate.

Alaska Sales Tax Calculator

Select a city to see the local sales tax rate. No state-level tax applies.

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Applied rate:5%

No state sales tax in Alaska. Local taxes may apply depending on municipality.

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Alaska Sales Tax Guide 2026

Alaska occupies a unique position in American sales tax policy: no state-level sales tax, but with significant variation at the local level. Unlike Delaware, Montana, New Hampshire, and Oregon — which have no sales tax at any level — Alaska allows its municipalities to levy their own sales taxes independently of the state. The result is a patchwork where Anchorage (Alaska's largest city, home to about 40% of the state's population) charges zero sales tax, while smaller communities like Ketchikan charge 7.5%.

The majority of Alaskans live in the Anchorage/MatSu area (Matanuska-Susitna Borough), which has no borough-level sales tax (though Wasilla within MatSu has a 2.5% rate). Fairbanks, the second-largest city, also has no sales tax. This means most Alaskans experience a zero or very low sales tax environment in their daily lives.

Small and remote Alaskan communities tend to have higher local sales tax rates — partly because they have fewer alternative revenue mechanisms and higher service costs. Ketchikan's 7.5% funds city services in a community accessible primarily by ferry or plane. Bethel and Nome charge 6% to fund local infrastructure in communities with very high operating costs.

Alaska also receives no federal income tax on most residents (due to lack of state income tax and special Alaska circumstances), and uniquely, Alaska pays eligible residents an annual Permanent Fund Dividend from oil revenues — typically $1,000–$1,700/year per resident. The combination of no income tax, no state sales tax, and an annual dividend makes Alaska distinctively tax-light for residents, partially offset by very high costs of living, especially in remote areas.

Alaska Sales Tax by City

CityState RateLocal RateCombined
Juneau0%5%5%
Ketchikan0%7.5%7.5%
Sitka0%5%5%
Kodiak0%6%6%
Fairbanks0%0%0%
Anchorage0%0%0%
Wasilla0%2.5%2.5%
Nome0%5%5%
Bethel0%6%6%
Kenai0%0%0%

Source: Alaska Dept. of Commerce — Municipal Tax Data. Last updated: May 2026

Worked Examples: Alaska Sales Tax

Comparing the highest-rate and lowest-rate locations in Alaska: Ketchikan (7.5%) vs. Fairbanks (0%).

Highest Rate: Ketchikan

7.5%

PurchaseTaxTotal
$100.00$7.50$107.50
$500.00$37.50$537.50
$1,000.00$75.00$1,075.00

Lowest Rate: Fairbanks

0%

PurchaseTaxTotal
$100.00$0.00$100.00
$500.00$0.00$500.00
$1,000.00$0.00$1,000.00

Category Comparison at Ketchikan (7.5%)

ItemPriceSales TaxTotal
Groceries$150.00$11.25$161.25
Electronics ($500 TV)$500.00$37.50$537.50
Clothing ($80 jacket)$80.00$6.00$86.00
Restaurant Meal$60.00$4.50$64.50

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Alaska Sales Tax: Frequently Asked Questions

No. Anchorage, Alaska's largest city with approximately 290,000 residents, has no sales tax of any kind — no state, no municipal. This is one reason Anchorage is surprisingly tax-light for a major US city: no state income tax, no local income tax, no city sales tax. The Municipality of Anchorage funds its services primarily through property taxes. For consumers, shopping in Anchorage is truly tax-free on retail goods. Anchorage does collect a tax on prepared restaurant meals (5%) and hotel stays (12%), but these are targeted excise taxes, not general sales taxes.

Sources & Methodology