Alaska Tax Guide
0%state income tax
Alaska is one of the most tax-friendly states in America. It has no state income tax AND no state sales tax. Residents also receive an annual Permanent Fund Dividend from oil revenue. Property taxes are slightly above the national average.
Alaska Tax at a Glance
Income Tax
None
No state income tax
Sales Tax
None
No state sales tax
Property Tax
1.19%
Near the national average for property tax
Estate Tax
No
No state estate tax
How Alaska Compares to the National Average
Notable Tax Facts
- No state income tax and no state sales tax — one of only two states with neither
- Residents receive an annual Permanent Fund Dividend (PFD) from oil revenue
- Some local jurisdictions do levy their own sales taxes
- The PFD has historically ranged from ~$1,000 to $3,200 per person
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Alaska Tax FAQ
Does Alaska have income tax?
No. Alaska is one of nine states with no state income tax. It has never had a broad-based state income tax.
Does Alaska have sales tax?
Alaska has no state-level sales tax. However, some local municipalities do levy their own sales taxes, typically ranging from 1% to 7.5%.
What is the Alaska Permanent Fund Dividend?
The PFD is an annual payment to Alaska residents from investment returns on the state's oil wealth. It varies each year but has historically been between $1,000 and $3,200 per person.
Why doesn't Alaska have income or sales tax?
Alaska's state government is primarily funded by oil revenue. The state's vast petroleum reserves generate enough income to operate without broad-based income or sales taxes.
Compare With Other States
Other No-Income-Tax States
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Educational content, not tax advice. Tax rates are approximate and subject to change. Consult a qualified CPA or tax professional for advice specific to your situation. Data reflects widely-known public information as of early 2026.