Alaska does not have an individual income tax. Alaska has a graduated corporate income tax, with rates ranging from 0.0 percent to 9.4 percent, but does not have a state sales tax; Alaska has an average combined state and local sales tax rate of 1.82 percent. Alaska has a 0.94 percent effective property tax rate on owner-occupied housing value. Alaska does not have an estate tax or inheritance tax. Alaska’s gas tax is 8.95 cents per gallon, and its cigarette excise tax is $2.00 per pack of 20 cigarettes.
Alaska raises tax revenue primarily through other taxes (53.5 percent of total state and local tax revenue), property taxes (32.1 percent), and corporate income taxes (8.0 percent). Alaska collects $7,605 in state and local tax collections per capita, carries $11,747 in state and local debt per capita, and has a 78 percent funded ratio of public pension plans. Alaska’s tax system ranks 4th overall on the 2026 State Tax Competitiveness Index.
Each state’s tax code is a multifaceted system with many moving parts, and Alaska is no exception. Use the tabs below to compare Alaska taxes with other states and to see how Alaska raises tax revenue. You can also browse our tax maps, which are compiled from our annual publication, Facts & Figures 2026: How Does Your State Compare?
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The State Tax Competitiveness Index enables policymakers, taxpayers, and business leaders to gauge how their states’ tax systems compare. While there are many ways to show how much state governments collect in taxes, the Index evaluates how well states structure their tax systems and provides a road map for improvement.
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Facts & Figures serves as a one-stop state tax data resource that compares all 50 states on over 40 measures of tax rates, collections, burdens, and more.
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At the end of 2025, the individual tax provisions in the Tax Cuts and Jobs Act (TCJA) expire all at once. Without congressional action, most taxpayers will see a notable tax increase relative to current policy in 2026.
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States have generally tried to encourage capital investment. Throwback and throwout rules are an unfortunate example of penalizing it.
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Facts & Figures serves as a one-stop state tax data resource that compares all 50 states on over 40 measures of tax rates, collections, burdens, and more.
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Savings and investment are critical activities, both for individuals’ and families’ financial security and for the health of the national economy as a whole. As such, policymakers should consider how they can help mitigate—rather than add to—tax codes’ biases against saving and investment.
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With state tax revenues receding from all-time highs, there’s been a great deal of handwringing about whether states can afford the tax cuts adopted over the past few years. Given that 27 states reduced the rate of a major tax between 2021 and 2023, is there reason for concern?
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Reforming economic nexus thresholds would not only be better for businesses but for states as well. It is more cost-effective for states to focus on—and simplify—compliance for a reasonable number of sellers than to impose rules that have low compliance and are costly to administer.
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Do taxes affect individuals’ decisions regarding where to live and work? Can high taxes cause the outmigration of wealthy individuals?
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Does your state have a small business exemption for machinery and equipment?
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Individual income taxes are a major source of state government revenue, accounting for more than a third of state tax collections. How do income taxes compare in your state?
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Short FormWorking from home is great. The tax complications? Not so much.
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