In this second part of the halftime report for Tax Foundation Forum: Making Sense of Profit Shifting, we discuss the key takeaways from the first half of our series on profit shifting (read part I here). In this post, we...
The facts on Alaska’s Tax Climate
0%individual income taxNone
9.4%corporate income taxTop rate
0%sales taxlocal only
$2072property taxcollections per capita
Alaska's Individual Income Tax System
Alaska levies no individual income tax, joining seven other states with the same policy: Alaska, Florida, Nevada, South Dakota, Texas, Washington, and Wyoming.
50-State Table of Individual Income Tax Rates
50-State Table of State Individual Income Tax Collections
50-State Table of State and Local Individual Income Tax Collections Per Capita
Alaska's Corporate Income Tax System
Alaska's corporate income tax system consists of ten brackets and a top rate of 9.4%. That rate ranks 4th highest among states levying a corporate income tax. Alaska's state and local corporate income tax collections per person were $912 in 2012 which ranked highest nationally.
50-State Table of Corporate Income Tax Rates
50-State Table of State and Local Corporate Income Tax Collections Per Capita
50-State Table of State Corporate Income Tax Collections Per Capita
Alaska Sales and Excise Taxes
Alaska levies a 0% general sales or use tax on consumers, which is below the national median of 5.95%. The average local sales tax rate is an additional 1.76%. Alaska's state and local governments collect $286 per person in general sales taxes and $458 per person in excise taxes, for a combined figure of $744, which ranks 5th lowest nationally. Alaska's gasoline tax stands at 11.3¢ (lowest nationally), while its cigarette tax stands at $2 (11th highest nationally.)
50-State Table of State and Local General and Selective Sales Tax Collections Per Capita
Alaska Property Tax Collections Relatively High
Alaska's state and local governments collected approximately $2072 per person in property taxes in 2012, which ranks 8th highest nationally.
State and local property tax collections per capita by state
Tax Freedom Day Arrives on April 11th in Alaska
Tax Freedom Day is the day when Americans finally have earned enough money to pay off their total tax bill for the year. In 2014, Alaska taxpayers worked until April 11th (15th earliest nationally) to pay their total tax bill. The Tax Freedom Days of neighboring states are: Hawaii, April 15th (ranked 25th latest nationally); Oregon, April 20th (ranked 16th latest nationally); Washington, April 25th (ranked 9th latest nationally); and California, April 30th (ranked 4th latest nationally).
Alaska's State and Local Tax Burden Below National Average
Alaska's 2011 tax burden of 7% ranks 2nd lowest out of 50 states, and is below the national average of 9.8%. Alaska's taxpayers pay $3319 per capita in state and local taxes.
Alaska's State-Local Tax Burden, 1977-Present
Other States' State/Local Tax Burdens
Map of U.S. Showing all State's Burdens and Ranks
Historical Chart Comparing All States' State/Local Tax Burdens from 1977 to 2009
Alaska's 2015 Business Tax Climate Index Ranks 4
Alaska ranks 4th in the Tax Foundation's State Business Tax Climate Index. The Index compares the states in five areas of taxation that impact business: corporate taxes, individual income taxes, sales taxes, unemployment insurance taxes, and taxes on property, including residential and commercial property. The ranks of neighboring states are as follows: Hawaii, 30th, Oregon, 12th, Washington, 11th, and California, 48th.
State Business Tax Climate Index (full study)
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