Alaska Sales Tax Rates by City and Borough (2026 Rate Table)
Alaska Sales Tax Rates by City and Borough (2026 Rate Table)
Alaska has no statewide sales tax, so your alaska sales tax rate depends on the city or borough where the sale happens. Two sales a few miles apart can carry very different totals. This resource guide lists the combined general retail rates for the places business owners ask about most, along with seasonal changes, per-item caps, and alcohol rules that catch people off guard. Use it to see alaska sales tax by city at a glance, then confirm the current figure before you charge anyone.
This is informational content, not legal or tax advice. Rates change monthly, so confirm every figure with the agency named here before you rely on it.
Alaska has no state sales tax, but many places levy one
Alaska has no statewide sales tax and no state personal income tax. Cities and boroughs set their own sales tax, and about 110 of Alaska's 162 municipalities levy a local sales tax. Typical local rates run 2% to 5%, though several are higher and a few places levy no general sales tax at all.
Anchorage is the clearest example. It has no general sales tax, while Kodiak's combined general rate is 7%. Never assume one rate applies across the state. Identify the city and borough first, then look up the rate for that location.
The Tax Division of the Alaska Department of Revenue administers the state corporate income tax, but it does not set local sales tax rates. Direct sales tax questions to the city or borough that levies the tax.
How to read the 2026 rate table
The rates below are combined general retail rates from the Alaska Remote Seller Sales Tax Commission (ARSSTC) rate sheet dated October 1, 2026. Combined means the city rate and any borough rate are added together. Ketchikan's 5.5% rate from October to March is a 3% city rate plus a 2.5% borough rate. Kenai and Soldotna's 6% is 3% from the city plus 3% from the Kenai Peninsula Borough.
Seasonal rates switch on April 1 and October 1 in most places that have them. Pelican switches on May 1 and November 1. A sale on March 31 and one on April 1 can carry different totals, so the date of the sale matters as much as the place.
| Place | Combined general rate | Notes |
|---|---|---|
| Anchorage | No general sales tax | Check bed tax and other levies with the Municipality of Anchorage |
| Bethel | 6% | Alcohol taxed at 15% in lieu of the general tax; $10,000 cap |
| Homer | 7.85% | 4.85% city plus 3% borough; $500 cap |
| Houston | 2% | None listed |
| Juneau | 5% | Alcohol 8% (5% plus a 3% add-on); $50,000 cap |
| Kenai | 6% | 3% city plus 3% borough; see borough cap below |
| Ketchikan | 5.5% October to March; 8% April to September | City 3% October to March and 5.5% April to September, plus 2.5% borough; $2,000 cap |
| Kodiak | 7% | $3,000 cap |
| Palmer | 4% | None listed |
| Seward | 7% | None listed |
| Sitka | 5% October to March; 6% April to September | $12,000 cap |
| Soldotna | 6% | 3% city plus 3% borough |
| Unalaska | 3% | None listed |
| Wasilla | 2.5% | None listed |
Worked example
Take a $200 sale that falls below every cap in the table. Tax in Houston is $4 at 2%. In Seward at 7%, it is $14. In Homer at 7.85%, it is $15.70. In Ketchikan, the same sale is $11 from October to March and $16 from April to September. In Anchorage, the local general tax is $0, though other levies may still apply. These five figures show why both the place and the date matter when you quote a price.
Per-item and per-transaction caps
Several jurisdictions cap how much sales tax applies to one item or one transaction, so a large purchase does not pay the full rate on its entire price. The caps in this table are:
- Homer and the Kenai Peninsula Borough: $500
- Ketchikan: $2,000
- Kodiak: $3,000
- Cordova: $5,000
- Bethel: $10,000
- Sitka: $12,000
- Juneau: $50,000
Caps work differently from place to place. Some apply per item and others per transaction. Before you quote a large invoice, confirm with the city or borough whether its cap is per item or per transaction, and whether it covers the sale you are making. For the Kenai Peninsula Borough, ask how its $500 cap applies to sales inside Kenai and Soldotna, since those cities levy their own tax on top of the borough tax.
Alcohol, bed tax and other levies
Alcohol is often taxed differently from other goods. Juneau's alcohol rate is 8%, which is the 5% general rate plus a 3% add-on. In Bethel, the 6% general rate does not apply to alcohol. The city levies a 15% alcohol tax in lieu of the general tax.
Bed tax on lodging is separate from the sales tax in this table. Many cities and boroughs levy one, and this guide does not list those rates. If you rent rooms, cabins, or other space to guests, confirm the lodging levy for each place with its city or borough. Anchorage has no general sales tax, but that does not mean no tax applies to your business. Check with the Municipality of Anchorage about bed tax and any other levy before you set prices.
Many businesses operate outside city limits, including in the Unorganized Borough. This table covers only the places named here. Outside a city, confirm the local tax situation with the nearest borough office or ARSSTC before assuming no tax applies.
State business license and local business licenses
Alaska has one statewide business license under AS 43.70, and you need it before you engage in business activity in Alaska. The Division of Corporations, Business and Professional Licensing within the Alaska Department of Commerce, Community, and Economic Development issues it. The fee is $50 for one year or $100 for two years (Form 08-4181 for a new application, Form 08-4617 to renew). The only endorsement is for tobacco sales, at $100 per location, and occupations regulated under AS 08 also need a professional license.
The state business license is separate from forming an entity. An LLC or corporation is formed through the Corporations Section of the same division, and both file a biennial report every two years, not annually. The biennial report fee is $100 and is due January 2 every two years, in the year matching formation, with late penalties after February 1. A no-fee initial report is due within six months of formation.
Local general business licenses differ by city. Some cities require one, while Anchorage, Ketchikan and Homer do not. Check with the city where you will operate before you open, because a state license does not answer the local question.
Common mistakes to avoid
- Assuming a statewide rate. Alaska has none, so a rate in one city does not carry over to the next.
- Using a stale rate sheet. Seasonal rates change April 1 and October 1, and the sheet is refreshed every month.
- Ignoring the borough layer. Ketchikan, Kenai, Soldotna and Homer rates include a borough share. Quoting only the city rate undercharges.
- Forgetting alcohol and lodging. Alcohol and bed tax can be set apart from the general rate.
- Missing caps. A cap can change the tax on a large invoice, so check before you quote.
How to confirm the rate before you charge
The commission posts a new rate sheet every month, so any printed table goes stale. Build a monthly check into your bookkeeping:
- Open the current rate sheet at arsstc.org/tax-rates and note its date.
- Find your city and borough, then record both the general rate and any seasonal change.
- Confirm the city's and borough's own rules on caps, exemptions, and registration with that agency.
- Compare your point-of-sale settings to the sheet, and schedule each change for April 1 or October 1 (May 1 or November 1 for Pelican).
- Log the date you checked and the sheet date you used.
This guide does not list exemptions, which vary by jurisdiction. Confirm any exemption with the city or borough before you apply it at the register.
Official sources
- ARSSTC rate sheets: arsstc.org/tax-rates
- Alaska Department of Revenue, Tax Division (state corporate income tax; no state sales tax): tax.alaska.gov
- DCCED Corporations, Business and Professional Licensing (business license and entity filings): commerce.alaska.gov
- Alaska Small Business Development Center: aksbdc.org
When to ask a professional
If you sell in several cities, ship across borough lines, or run a lodging business, the rules stack. A qualified CPA or Alaska attorney can review your setup before you commit to a pricing or filing approach. This guide does not replace that review.
Disclaimer: This resource guide is informational content, not legal or tax advice. Rates reflect the ARSSTC rate sheet dated October 1, 2026, and they change monthly. Confirm current figures with the named agency before you file or charge tax.