Alaska's Sales Tax Rate, Explained
Alaska simply does not have a statewide sales tax. There is no state rate to add, no state return for most sellers to file, and no state line on your receipt. That puts Alaska in rare company with Delaware, Montana, New Hampshire, and Oregon as one of the five states with a 0% state rate.
The story does not end there, because boroughs and municipalities can levy their own sales taxes. The average local rate across the state is about 1.82%, which sounds low until you look closer. Juneau charges 5%, and some smaller jurisdictions push toward 7.85%, the highest local rate in the state. Anchorage, the state's largest city, charges 0%. Comparing the Last Frontier to the Lower 48, our Delaware Sales Tax Calculator shows the other true zero-tax state, while Hawaii's Sales Tax Calculator covers the other non-contiguous state.
What's Taxed and What's Exempt in Alaska
Where local sales taxes exist in Alaska, they generally apply to tangible goods sold at retail. Because there is no state tax code defining exemptions, each borough or city sets its own rules, so what is taxable in Juneau is not necessarily taxable in Kenai.
Groceries are not taxed by the state, since there is no state tax, but a local jurisdiction with a sales tax can and often does tax food. Services are broadly untaxed at the state level. Prescription drugs are typically exempt wherever local taxes exist.
Worked Example: A $1,000 Purchase in Anchorage
Buy a $1,000 laptop in Anchorage and the math is the simplest in America: $1,000 x 0% = $0.00 in sales tax, for a total of $1,000.00. No state rate, no city rate, no district add-ons. It is one reason Anchorage retailers do brisk business with visitors from taxed states.
| Item | Amount |
| Purchase price | $1,000.00 |
| Alaska combined rate (Anchorage) | 0% |
| Sales tax | $0.00 |
| Total at checkout | $1,000.00 |
Drive that same purchase to Juneau and the picture changes. At Juneau's 5% local rate, the same laptop costs $1,050.00. Enter your borough or city in the calculator above to see exactly which rate applies to your address.
Local Taxes: How Alaska's Total Adds Up
Alaska's local taxes are entirely optional and locally controlled. Boroughs like the Kenai Peninsula and cities like Juneau, Fairbanks-area communities, and Sitka impose them; Anchorage and much of the state do not. Rates range from 1% or 2% in some towns up to 7.85% in the highest-taxed spots.
Because there is no state administration, each taxing locality handles its own collection rules. That fragmentation means shoppers should always check the specific city rate rather than assuming anything about Alaska as a whole.
Online Shopping and Marketplace Rules in Alaska
Remote sellers with more than $100,000 in sales or 200 transactions into Alaska must collect applicable local sales taxes. Marketplace facilitators collect on their sellers' behalf, so an Amazon order shipped to Juneau will show Juneau's 5% at checkout.
There is no state use tax to worry about, which simplifies online shopping. If your borough has no local tax, an online order is effectively tax-free, the same as buying in person.
Sales Tax Holidays in Alaska
Alaska has no sales tax holidays, and with no statewide sales tax there is little reason for one. The state legislature has never created a holiday program, and local jurisdictions have not adopted their own either.
The practical equivalent of a tax holiday in Alaska is simply shopping in a zero-tax city like Anchorage. If you live in a taxed borough, timing a large purchase for a trip to Anchorage saves the full local rate with no waiting for a special weekend.
Frequently Asked Questions
Does Alaska have a state sales tax?
No. Alaska has no statewide sales tax, so the state rate is 0% everywhere in Alaska.
Which Alaska cities charge sales tax?
Juneau charges 5%, and several boroughs and smaller cities charge their own rates up to about 7.85%. Anchorage, the largest city, charges no sales tax.
Do I pay sales tax on online orders shipped to Alaska?
Only the local rate of your delivery address, if your borough or city has one. Marketplace sellers like Amazon collect it automatically at checkout.
Are groceries taxed in Alaska?
There is no state tax on groceries. Local jurisdictions with a sales tax may tax food, so it depends on where you shop.
Why does Alaska have no sales tax?
Alaska funds its government largely through oil revenue and investment earnings rather than broad-based sales or income taxes. Local governments that want sales tax revenue levy it themselves.
Related Alaska and Sales Tax Tools
Check your take-home pay with the Alaska Paycheck Calculator, since sales tax hits harder when budgets are tight, or estimate a big purchase with our Car Loan Calculator. Compare rates with the main Sales Tax Calculator or browse more free tools at USACalculator.
Alaska rate snapshot (0% state rate, 1.82% average local). Sources: Tax Foundation, State and Local Sales Tax Rates Midyear 2026. Figures reviewed for 2026. This calculator provides an estimate for planning purposes and is not tax advice.