Alaska sales tax at a glance
| Type of tax | No state sales tax; local sales taxes only |
|---|---|
| State rate | None |
| Local rates | Average 1.82%, highest 7.85% |
| Average combined rate | 1.82% |
| Groceries | Set by each local governmentThere is no state tax. Each borough or city that levies a sales tax decides whether groceries are taxed. |
| Prescription drugs | Set by each local governmentThere is no state tax; local sales tax rules on medicine vary by municipality. |
| Clothing | Local tax where leviedClothing is subject to local sales tax only in boroughs and cities that levy one. |
Local averages are population-weighted figures from the Tax Foundation: State and Local Sales Tax Rates, Midyear 2026 (rates as of 1 July 2026). They are a guide, not the rate at any one address. For the exact rate where you buy, use the Alaska Remote Seller Sales Tax Commission: local tax rates.
Worked examples
A $500 purchase in a town with a 5% local sales tax
| Rate | 0% state + 5% local = 5% |
|---|---|
| Price before tax | $500.00 |
| Sales tax | $25.00 |
| Total | $525.00 |
Working: $500.00 × 5% = $25.00. With no state tax, the local rate is the whole rate. Check whether your town caps the tax on a single sale, which can lower the bill on large items.
Working back from a $101.82 total at the 1.82% average
| Rate | 0% state + 1.82% local = 1.82% |
|---|---|
| Price before tax | $100.00 |
| Sales tax | $1.82 |
| Total | $101.82 |
Working back: $101.82 ÷ 1.0182 = $100.00, so the tax was $1.82. The average is pulled down by Anchorage, which has no sales tax. Use your town's actual rate for a real receipt.
How Alaska local sales tax works
Without a state sales tax, each municipality sets its own rate, exemptions and caps. Some towns charge different rates in summer and winter, and some cap the tax on a single sale, so the tax on an expensive item may be lower than rate times price. Because there is no state agency for sales tax, the Alaska Remote Seller Sales Tax Commission, a group of participating municipalities, publishes monthly rate sheets and rules for each member town. For purchases in a non-member town, check with the city or borough directly.
Online orders and remote sellers
Out-of-state sellers that sell more than $100,000 a year into Alaska must register with the Commission and collect the local sales tax of the delivery address in member municipalities. The old test of 200 separate transactions was repealed from 1 January 2025, so only the dollar threshold counts. If you live somewhere with no local sales tax, such as Anchorage, online orders delivered to you should not carry sales tax.