How does Alaska’s tax code compare? 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. Alaska does not have a state sales tax but has an average combined state and local sales tax rate of 1.82 percent. Alaska has a 1.07 percent effective property tax rate on owner-occupied housing value.
Alaska does not have an estate tax or inheritance tax. Alaska has an 8.95 cents per gallon gas tax rate and a $2.00 cigarette excise tax rate (per pack of 20 cigarettes). The State of Alaska collects $6,915 in state and local tax collections per capita. Alaska has $11,586 in state and local debt per capita and 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. The first step toward understanding Alaska’s tax code is knowing the basics. How does Alaska collect tax revenue? Click the tabs below to learn more! You can also explore our state tax maps, which are compiled from our annual publication, Facts & Figures 2025: 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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29 min read
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Retail sales taxes are an essential part of most states’ revenue toolkits, responsible for nearly a quarter of combined state and local tax collections.
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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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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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However states choose to respond to other tax provisions of the One Big Beautiful Bill Act, they should conform to the pro-growth provisions, which represent a marked improvement in the corporate tax code.
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However well-intended they may be, sales tax holidays remain the same as they always have been—ineffective and inefficient.
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The One Big Beautiful Bill’s changes to the taxation of international income have surprising implications for state codes, yielding tax increases and a revised tax base that, through quirks of state incorporation, bears very little resemblance to the federal base and almost nothing of its purpose.
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