Income Tax
Alaska is one of only a handful of states with no state income tax, and residents also receive an annual Permanent Fund Dividend rather than paying into state coffers.
| Indicator | Alaska | U.S. |
|---|---|---|
| State Income Tax Rate (%) | 0 | 4.5 |
- •Alaska is one of only nine states with no state income tax.
- •The Permanent Fund Dividend effectively works like a negative tax, paying residents each year.
Property Tax
Alaska's effective property tax rate of 1.04% is close to the national average, though property taxes are the primary local revenue source given the absence of state income or sales taxes.
State-level property tax collections
1990–2025Census State Government Tax Collections; excludes local property taxes (FRED AKPROPTAX).
| Indicator | Alaska | U.S. |
|---|---|---|
| Effective Property Tax Rate (%) | 1.04 | 0.9 |
- •Some rural Alaska boroughs levy no property tax at all due to reliance on other revenue.
- •Anchorage and other urban boroughs depend heavily on property tax revenue for schools and services.
Sales Tax
Alaska has no statewide sales tax, though local municipalities can levy their own sales taxes of up to 7.5%, averaging about 1.8% statewide.
| Indicator | Alaska | U.S. |
|---|---|---|
| Avg Combined Sales Tax (%) | 1.8 | 6.6 |
- •Alaska is one of only five states without a statewide sales tax.
- •Local sales tax rates can reach as high as 7.5% in some municipalities.
Tax Burden
Alaska has one of the lowest total state and local tax burdens in the nation, at roughly 4.6% of income, thanks to abundant oil revenue offsetting the need for income or sales taxes.
State tax collections per resident
1990–2025Census tax collections (AKTOTLTAX) divided by Census resident population (AKPOP).
| Indicator | Alaska | U.S. |
|---|---|---|
| Total Tax Burden (%) | 4.6 | 9.9 |
- •Alaska consistently ranks among the one or two lowest tax-burden states nationally.
- •Oil and gas revenues, not resident taxes, fund the bulk of state government.
Tax Revenue
State tax revenue in Alaska is dominated by oil and gas production taxes and royalties, supplemented by the Alaska Permanent Fund's roughly $80 billion in assets.
State tax collections
1990–2025Census Annual Survey of State Government Tax Collections, fiscal years (FRED AKTOTLTAX).
| Indicator | Alaska | U.S. |
|---|---|---|
| Permanent Fund Assets ($B) | 80 | 0 |
- •The Alaska Permanent Fund holds roughly $80 billion in assets built from oil revenue.
- •Oil price swings can cause large year-to-year changes in total state revenue.