This morning, the office of House Speaker Paul Ryan released a blueprint for tax reform that would overhaul major components of the U.S. tax code and lower taxes for households and businesses. The key details of the plan...
The facts on Alaska’s Tax Climate
0%individual income taxNone
9.4%corporate income taxTop rate
0%sales taxlocal only
$1,913property taxcollections per capita
Alaska's Individual Income Tax System
Alaska levies no individual income tax, joining six other states with the same policy: Florida, Nevada, South Dakota, Texas, Washington, and Wyoming.
50-State Table of Individual Income Tax Rates
Alaska's Corporate Income Tax System
Alaska's corporate income tax system consists of 10 brackets with a top rate of 9.4%. The top rate ranks 4th highest among states levying a corporate income tax. Alaska's state and local corporate income tax collections per person were $856 in 2013 which ranked 1st highest nationally.
50-State Table of Corporate Income Tax Rates
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 1.8%. Alaska's state and local governments collect $294 per person in general sales taxes and $450 per person in excise taxes, for a combined figure of $744, which ranks 46th highest nationally. Alaska's gasoline tax stands at 12.25 cents per gallon, 50th highest nationally, while its cigarette tax stands at $2.00, 11th highest nationally.
50-State Table of State and Local Sales Tax Rates
Alaska Property Tax Collections Relatively High
Alaska's state and local governments collected approximately $1,913 per person in property taxes in 2013, which ranks 10th nationally.
Tax Freedom Day Arrives on April 10th in Alaska
Tax Freedom Day is the day when Americans have finally earned enough money to pay off their total tax bill for the year. In 2016, Alaska taxpayers have to work until April 10th (7th earliest nationally) to pay their total tax bill.
Alaska's State and Local Tax Burden Ranks 50th
Alaska's 2016 Business Tax Climate Index Ranks 3rd
Alaska ranks 3rd on the Tax Foundation's State Business Tax Climate Index. The Index compares the states in five areas of taxation that impact business: corporate taxes (30th), individual income taxes (1st), sales taxes (5th), unemployment insurance taxes (21st), and taxes on property (21st), including residential and commercial property.
State Business Tax Climate Index (full study)
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