Alaska Bed Tax and Lodging Tax by City and Borough
Alaska Bed Tax and Lodging Tax by City and Borough
Whether you call it a bed tax, room tax, hotel tax, or lodging tax, the rule in Alaska is the same: the state does not levy one. Every lodging tax you will collect or pay is set by a city or borough. The rate depends on where the property sits, so a figure from Anchorage tells you nothing about Juneau, Fairbanks, or Kodiak.
This guide covers the local rates we could verify, explains how they sit alongside other charges, and lists what to confirm before you register or file. Rates change through local legislation, so treat every figure here as a starting point and confirm it with the taxing body before you quote a price.
Informational content, not legal or tax advice. This guide summarizes public information as of October 2026. It is not legal, tax, or accounting advice, and lodging tax rules include definitions, exemptions, and thresholds that depend on your facts. Consult a qualified attorney or CPA before you make decisions about your business.
Alaska has no state lodging tax
Alaska has no statewide sales tax and no state personal income tax. Its local governments fill that gap in different ways. Organized boroughs, cities, and some other municipalities decide whether to levy a room or bed tax, a general sales tax, or both. Many of them do. Alaska also has no counties, so the question is always which city or borough, and in some places the answer involves more than one.
Properties outside any city or borough are a separate case. This guide does not cover them, so ask the Alaska Department of Revenue, Tax Division at tax.alaska.gov whether any tax applies.
Current lodging tax rates by city and borough
The table lists current rates for the places most operators ask about. Each row names the taxing body, so you know who to contact.
| Location | Taxing body | Rate | What to know |
|---|---|---|---|
| Anchorage | Municipality of Anchorage | 12% | Rentals under 30 days (AMC 12.20). Register each rental business with the Treasury. Quarterly returns are due 30 days after quarter end. |
| Juneau | City and Borough of Juneau | 9% hotel-motel tax, on top of the 5% CBJ sales tax, for 14% total | The 9% runs through December 31, 2034. Figure from the CBJ 2026 return. |
| Ketchikan | Ketchikan Gateway Borough (4%) and City of Ketchikan (7%) | 11% combined | Stays under 30 days, effective January 1, 2026. Figure from the Ketchikan Daily News. Confirm with both bodies. |
| Fairbanks North Star Borough | Fairbanks North Star Borough | 8% | FNSBC 8.48. A proposal to raise the rate to 12% died in the Assembly in June 2025. |
| Kodiak | Kodiak Island Borough and City of Kodiak | Borough levies 5% on transient rentals (KIBC 3.55) | The combined total is not settled here. Check the City of Kodiak and borough finance offices. |
| Seward | City of Seward | 4% city room tax | Confirm the rate and filing rules with the city. |
| Cordova | City of Cordova | 6% surtax on lodging | Confirm the rate and filing rules with the city. |
Where a row lists two bodies, each may levy its own tax with its own requirements. Confirm with each one whether it has a separate filing or registration step.
Rates as of 2026 are set by each city or borough. Check before you file, because a rate can change between the time this guide was researched and the date of your return.
What the rates mean on a $200 night
The math is simple, but the answer depends on which taxes apply to the room charge. The table below is illustrative. It uses a $200 room charge, the rates above, and no other fees.
| Location | Tax on $200 | Basis |
|---|---|---|
| Anchorage | $24 | 12%, stays under 30 days |
| Juneau | $28 | 9% hotel-motel plus 5% sales tax, if both apply to the room |
| Ketchikan | $22 | 11%, stays under 30 days |
| Fairbanks North Star Borough | $16 | 8% |
| Kodiak Island Borough portion | $10 | 5%, city portion not included |
Use these numbers only to see the scale. A bill that looks right on paper may still be wrong if the city applies its tax to a different base, such as the room only or the room plus fees.
The alaska head tax is a cruise charge, not a lodging tax
People searching for an alaska head tax are usually trying to understand the per passenger charge on cruise ship visitors. It is not a tax on hotel guests. In Juneau, the charge is $13 per cruise passenger, and $5 of that is the state commercial passenger vessel excise tax. Vessels pay these charges, not shops, hotels, or tour operators. A lodging operator does not collect or remit them, but if you run cruise-related services, confirm your own obligations with a CPA.
Lodging tax is separate from business licensing
Registering for a lodging tax does not satisfy the state business license requirement, and the reverse is also true. Alaska has one statewide business license under AS 43.70, issued by the Division of Corporations, Business and Professional Licensing. You need it before you engage in business activity. It costs $50 for one year or $100 for two years, for new applications and renewals. Forming an LLC or corporation is a separate filing with the Corporations Section of the same division. Formation does not replace the license, and the license does not form an entity.
Local general business licenses are a separate question, and they vary by city. Some cities require one. Anchorage, Ketchikan, and Homer do not. Check the city where your property sits before you open, and do not assume a neighboring town's rule applies to you.
Steps before your first booking
- Identify the taxing bodies. Find out whether your property is inside a city, inside a borough, or in an area with neither. A city inside a borough can have its own tax, the borough can have one, or both can apply.
- Get the current rate in writing. Ask the finance or treasury office for the rate in effect, the date it took effect, and whether it applies to the room charge alone or to the whole bill.
- Register before you collect. Anchorage requires each rental business to register with the Treasury. Other places have their own registration steps, so ask before the first guest arrives.
- Check the stay length rule. Anchorage and Ketchikan apply their rates to stays under 30 days. Decide how your booking terms handle longer stays, and confirm the rule with the city before you quote a price.
- Set a filing calendar. Anchorage returns are quarterly and due 30 days after the quarter ends. Put the due date for your own city on your calendar the day you register.
- Hold the state business license and any local license. Get the $50 per year state license under AS 43.70, and the local general business license if your city requires one.
Common mistakes
- Quoting a statewide rate. Alaska has none. Every figure needs a city or borough name beside it.
- Assuming the rate is fixed. The Fairbanks North Star Borough proposal to move to 12% failed in June 2025, but rates move through local legislation. Check each year.
- Confusing the cruise charge with your tax. The per passenger cruise charge is paid by the vessel. It is not a bed tax you collect from guests.
- Treating sales tax and lodging tax as one line. In Juneau the two stack, and a bill may show both. Confirm how each applies to your charges.
- Skipping the state business license because you registered for lodging tax. The two are separate obligations.
Where to confirm rates and get help
Start with official sources. The Alaska Department of Revenue, Tax Division publishes state tax information at tax.alaska.gov. Business license and entity questions go to the Division of Corporations, Business and Professional Licensing, which you can reach through the Corporations page. For local rates, go to the finance, treasury, or tax office of the city or borough where your property sits. The Alaska Small Business Development Center can help you work through registration and recordkeeping.
If you operate in more than one city or borough, or you run cruise, tour, or seasonal operations, talk to a CPA who works with Alaska local taxes. A qualified attorney can review your booking terms, including who is responsible for collecting the tax when a booking platform is involved.
Bottom line
Alaska has no state lodging tax, so each property's tax comes from its city or borough. The rates above are the ones we could verify as of October 2026. Juneau, Ketchikan, Anchorage, and Fairbanks show how much the answer changes from one place to the next. Confirm the rate, register with the right office, and put your filing dates on the calendar before the first guest checks in.