State Taxes at a Glance – Alaska
| Type of Tax | 2023 |
|---|
| Individual Rates | NONE |
| Corporate / Business Tax Rates | 0% to 9.40% |
| Gross Receipts Tax | NONE |
| Property Taxes | 1.02% as a percentage of primary home |
| Sales Tax | 1.76% (average) |
| Estate or Inheritance Tax | NONE |
State Income Taxes in Alaska
Alaska is one of nine states that has no personal income tax.
Alaska also has a Permanent Fund Dividend (PFD) that gives its residences extra money every year to live in Alaska. The PFD is $1,312 in 2023.
State Business Taxes in Alaska
The state of Alaska does have a business income tax. Like most states with income tax, it is calculated on a marginal scale whose range is from 0% to 9.40% for 2022. For other business entities that are flow-thru entities, such as S Corporations, Partnerships, LLCs, etc., since it flows-thru to the individual level, there is no business tax on those entities. In other words, the tax is accessed on C Corporations.
| Tax Rate | Corporate Tax Brackets |
|---|---|
| 0.00% | $0 – $25,000 |
| 2.00% | $25,001 – $49,000 |
| 3.00% | $49,000 – $74,000 |
| 4.00% | $74,000 – $99,000 |
| 5.00% | $99,000 – $124,000 |
| 6.00% | $124,000 – $148,000 |
| 7.00% | $148,000 – $173,000 |
| 8.00% | $173,000 – $198,000 |
| 9.00% | $198,000 – $222,000 |
| 9.40% | $222,000 and above |
Sales and Property Taxes in Alaska
Sales Tax – sales tax in Alaska is unusual because there is no State level sales tax, however there are local sales tax rates. In Alaska, the average local Sales tax rate is 1.76%
Property Taxes in Alaska – the average property tax rate for residential property in the state of Alaska is 1.02%. The state of Alaska also has property tax exemptions in the following cases:
- Owner occupied – 20% exemption up to $50K
- Senior Citizen – exemption up to $150K
- Military – exemption up to $150K
Learn more about the exemptions at the Municipality of Anchorage website.
Payroll Taxes in Alaska
Unemployment taxes usually consist of three factors. They are the wage base, range of rates, number of schedules. Below is an outline of the three.
- Wage Base – Alaska has a high wage base of $47,100
- UI Rates – range from 1.00% to 6.50%
- Schedules – Alaska has multiple schedules regarding UI taxes
Alaska Business Entities – LLCs
Alaska is one of the best states in the country to set up your LLC. Here are some important facts:
- Alaska’s LLC fee is bi-annual (paid once every two years) at $150
- When you initially register, you pay an additional one time fee of $250
- Secretary of State of Alaska website – click here
Alaska DMV Registration Fees
It typically costs $250 to $500 to register your automobile in the state of Connecticut. It is based on the type of vehicle and city you live in. You may not deduct your DMV fees directly, since the fees are not based on the value of your automobile. However, your local city does assess personal property tax on your automobile which is deductible. Here is a link of where you can calculate your cost.
Alaska Domicile
Alaska’s does not have the same presumption is that it’s your permanent place of abode (domicile) if you’ve lived there for over 183 days during the taxable year. That is because they don’t want transient visitors claiming domicile to have access to the Permanent Fund Dividend. In general, you would need to live in Alaska for 12 months to be considered a legal resident (and have access to the PFD.) Learn more here.