-
Overall Rank
3
No change since 2026 -
33
Up 7 places since 2026 -
1
No change since 2026 -
5
No change since 2026 -
27
Up 5 places since 2026 -
Unemployment Insurance Tax Rank
50
No change since 2026
Alaska ranks 3rd overall on the 2027 State Tax Competitiveness Index.
Score 6.89 / 10
About Alaska's Tax Code
Alaska, which forgoes an individual income tax and a state-level sales tax, ranks well on the Index due to the absence of major taxes, but has room to reform the taxes it does impose. Cities and boroughs can impose their own sales taxes, resulting in a lack of base uniformity, though local governments have agreed to adopt a uniform code with central administration for remote sellers, lessening compliance burdens.
The state’s corporate income tax has a 20 percent net CFC-tested income (NCTI) inclusion, making it a national outlier. Alaska also imposes a throwback rule, exposing some out-of-state activity of Alaska-based corporations to the state’s corporate taxes, and it only partially conforms to federal depletion allowances. Property taxes are somewhat high, and the state taxes some inventory, but with no individual income tax, state sales tax, capital stock tax, or inheritance or estate tax, Alaska keeps taxes low for most residents and for some businesses, particularly those not subject to production taxes (e.g., oil and natural gas).
Component Scores
#3 overall · 6.89 / 10Each component is scored from 0 to 10, where 10 is best. Select a component for its detail page.
| Component | Rank | Score | |
|---|---|---|---|
| Corporate Taxes | #33 | 4.90 / 10 | |
| Individual Income Taxes | #1 | 10.00 / 10 | |
| Sales Taxes | #5 | 7.56 / 10 | |
| Property Taxes | #27 | 5.06 / 10 | |
| Unemployment Insurance Taxes | #50 | 3.54 / 10 |
Ranking Changes, 2020–2027
#3 in 2027 · unchanged from 2020Alaska ranked 3rd in 2020 and ranks 3rd in 2027, no net change. The axis is zoomed to the state's range. Ranks for 2020 through 2026 are backcast under the current methodology.
Show the Table
| Year | Overall | Corporate | Individual Income | Sales | Property | Unemployment Insurance |
|---|---|---|---|---|---|---|
| 2020 | 3 (6.89) | 34 (4.96) | 1 (10.00) | 5 (7.79) | 28 (5.10) | 50 (3.33) |
| 2021 | 3 (6.91) | 33 (4.97) | 1 (10.00) | 5 (7.77) | 29 (5.11) | 50 (3.30) |
| 2022 | 3 (7.00) | 34 (4.96) | 1 (10.00) | 5 (8.03) | 30 (5.10) | 50 (3.32) |
| 2023 | 3 (6.88) | 34 (4.92) | 1 (10.00) | 5 (7.75) | 30 (5.01) | 50 (3.12) |
| 2024 | 3 (7.05) | 35 (4.84) | 1 (10.00) | 5 (7.84) | 30 (5.01) | 44 (4.17) |
| 2025 | 3 (6.91) | 39 (4.71) | 1 (10.00) | 5 (7.58) | 31 (4.91) | 45 (4.01) |
| 2026 | 3 (6.81) | 40 (4.66) | 1 (10.00) | 5 (7.53) | 32 (4.85) | 50 (3.54) |
| 2027 | 3 (6.89) | 33 (4.90) | 1 (10.00) | 5 (7.56) | 27 (5.06) | 50 (3.54) |
Alaska Compared across the States
#3 overallEach row places the states on a 0 to 10 score scale for one measure. Alaska is the large outlined dot, and the dashed line is the 50-state median, so a dot to its right scores better than the typical state. Hover over or tab to any dot for detail, and select it to open that state's profile.
Overall
#3 6.89
Corporate Taxes
#33 4.90
Individual Income Taxes
#1 10.00
Sales Taxes
#5 7.56
Property Taxes
#27 5.06
Unemployment Insurance Taxes
#50 3.54
- Alaska
- Other states, by rank (1st to 50th)
- 50-state median
Alaska and Its Neighbors
#3 overallAlaska shares no land border with another state, so its closest competition is national rather than regional. Any state can still be compared below.
What Each Component Includes
The five components of the Index, what each one covers, and where Alaska lands. Open any component for the full breakdown.
-
Corporate Taxes
Rank #33Includes corporate income taxes and gross receipts taxes. Measures the impact of each state’s principal tax on business activities.
Full Breakdown for Alaska → -
Individual Income Taxes
Rank #1Covers the tax individuals pay on income, and with it a significant number of businesses — sole proprietorships, partnerships, and S corporations — that report their income through the individual income tax code.
Full Breakdown for Alaska → -
Sales Taxes
Rank #5Covers the general sales tax levied on the purchase price of goods and services, plus excise taxes on gasoline, diesel, tobacco, vapor products, beer, and spirits, and taxes on digital advertising.
Full Breakdown for Alaska → -
Property Taxes
Rank #27Includes taxes on real and personal property, net worth, and the transfer of assets — among them capital stock, estate, inheritance, and real estate transfer taxes.
Full Breakdown for Alaska → -
Unemployment Insurance Taxes
Rank #50Covers the taxes employers pay into the state unemployment insurance program to finance benefits for workers recently unemployed.
Full Breakdown for Alaska →
Tax Data Explorer
Every policy variable behind Alaska's 2027 scores, grouped by the report's tables, as of July 1, 2026. Search the variables and values, or add up to 4 states to compare side by side.
136 data points
Corporate Taxes: Corporate Income Tax Rates
| Variable | Alaska |
|---|---|
| Bracket 1 | 0.0% > $0 |
| Bracket 2 | 2.0% > $25,000 |
| Bracket 3 | 3.0% > $49,000 |
| Bracket 4 | 4.0% > $74,000 |
| Bracket 5 | 5.0% > $99,000 |
| Bracket 6 | 6.0% > $124,000 |
| Bracket 7 | 7.0% > $148,000 |
| Bracket 8 | 8.0% > $173,000 |
| Bracket 9 | 9.0% > $198,000 |
| Bracket 10 | 9.4% > $222,000 |
| Gross Receipts Tax | No |
Corporate Taxes: Tax Credits and Gross Receipts Deductions
| Variable | Alaska |
|---|---|
| Job Credits | No |
| Research and Development Credits | No |
| Investment Credits | No |
| Compensation Expenses Deductible | n.a. |
| Cost of Goods Sold Deductible | n.a. |
Corporate Taxes: Net Operating Losses
| Variable | Alaska |
|---|---|
| Conforms to Federal NOL Treatment | Yes |
| Carryback (Years) | Conforms to federal treatment |
| Carryback Cap | Conforms to federal treatment |
| Carryforward (Years) | Conforms to federal treatment |
| Carryforward Cap | Conforms to federal treatment |
Corporate Taxes: Treatment of Capital Investment
| Variable | Alaska |
|---|---|
| Section 168(k) Expensing | 100% |
| Conforms to Section 163(j) Limitation | Yes |
| GILTI Inclusion | 20% Inclusion |
| Section 174 Expensing | Yes |
| Section 168(n) Expensing | Yes |
Corporate Taxes: Other Corporate Base Variables
| Variable | Alaska |
|---|---|
| Federal Income Used as State Tax Base | Yes |
| Conformity Status | Rolling |
| Allows Federal ACRS or MACRS Depreciation | Yes |
| Allows Federal Depletion | Partial |
| Throwback Rule | Yes |
| Foreign Tax Deductibility | No |
| Corporate AMT | Yes |
| Brackets Indexed for Inflation | No |
Individual Income Taxes: Individual Income Tax Rates
| Variable | Alaska |
|---|---|
| Bracket 1 | No Income Tax |
| Average Local Income Tax Rate | None |
| Surtaxes on Wage Income | n.a. |
Individual Income Taxes: Marriage Penalty, Capital Income, Indexation
| Variable | Alaska |
|---|---|
| Convenience Rule | No |
| Tax Brackets Indexed for Inflation | n.a. |
| Standard Deduction Indexed for Inflation | n.a. |
| Personal Exemption Indexed for Inflation | n.a. |
| Progressivity Ratio | n.a. |
Individual Income Taxes: Other Individual Base Variables
| Variable | Alaska |
|---|---|
| AMT Levied | n.a. |
| Recognition of S Corporation Status | Yes |
| Section 179 Expensing Limit | $2,560,000 |
| Filing and Withholding Threshold Index | 10 |
Sales Taxes: Sales and Excise Tax Rates
| Variable | Alaska |
|---|---|
| State Sales Tax Rate | n.a. |
| Average Local Sales Tax Rate | 1.82% |
| Maximum Local Sales Tax Rate | 7.85% |
| Gasoline Tax (Cents per Gallon) | 8.95 |
| Diesel Tax (Cents per Gallon) | 8.95 |
| Cigarette Tax (Dollars per Pack of 20) | $2.00 |
| Beer Tax (Dollars per Gallon) | $1.07 |
| Spirits Tax (Dollars per Gallon) | $12.80 |
| Vapor Tax Ratio to Cigarette Tax | n.a. |
Sales Taxes: Business-to-Business Exemptions
| Variable | Alaska |
|---|---|
| Business Inputs | n.a. |
| Farm Equipment | n.a. |
| Office Equipment | n.a. |
| Manufacturing Machinery | n.a. |
| Manufacturing Raw Materials | n.a. |
| Business Fuel and Utilities | n.a. |
| Business Leases and Rentals | n.a. |
| Information Services | n.a. |
| Software as a Service (SaaS) | n.a. |
| Platform as a Service (PaaS) | n.a. |
| Digital B2B Products | n.a. |
| Payroll Services | n.a. |
| Data Center Purchases | n.a. |
| Digital Advertising Tax | No |
Sales Taxes: Consumer Goods and Services in the Base
| Variable | Alaska |
|---|---|
| Groceries | n.a. |
| Clothing | n.a. |
| Prescription Medication | n.a. |
| Nonprescription Medication | n.a. |
| Gasoline | n.a. |
| Landscaping | n.a. |
| Repair Services | n.a. |
| Real Estate Services | n.a. |
| Parking | n.a. |
| Dry Cleaning | n.a. |
| Fitness Services | n.a. |
| Barber Services | n.a. |
| Veterinary Services | n.a. |
| E-Books | n.a. |
| Streaming Video | n.a. |
| Medical Services | n.a. |
| Legal Services | n.a. |
| Financial Services | n.a. |
| Accounting Services | n.a. |
| Sales Tax Holiday | n.a. |
Sales Taxes: Sales Tax Structure
| Variable | Alaska |
|---|---|
| Uniform Base Definitions | No |
| Unified Tax Administration | No |
| Safe Harbor for Remote Sellers | Gross Sales Threshold |
Property Taxes: Property and Capital Stock Tax Rates
| Variable | Alaska |
|---|---|
| Property Tax Collections per Capita | $2,456 |
| Property Tax as a Percentage of Personal Income | 3.21% |
| Assessment Limit | No |
| Levy Limit | No |
| Capital Stock Tax Rate | None |
| Capital Stock Tax Maximum Payment | n.a. |
| Payment Options for Capital Stock and Corporate Income Taxes | n.a. |
Property Taxes: Property Tax Bases
| Variable | Alaska |
|---|---|
| Tangible Personal Property Tax | Yes |
| Tangible Personal Property De Minimis Exemption | None |
| Intangible Property Tax | No |
| Inventory Tax | Partial |
| Real Estate Transfer Tax | No |
| Split Roll | No |
| Split Roll Ratio | 1.00 |
| Estate Tax | No |
| Inheritance Tax | No |
| Gift Tax | No |
Unemployment Insurance Taxes: UI Tax Rates
| Variable | Alaska |
|---|---|
| Minimum Rate | 1.00% |
| Maximum Rate | 5.40% |
| Taxable Wage Base | $54,200 |
| Most Favorable Schedule: Minimum Rate | 1.00% |
| Most Favorable Schedule: Maximum Rate | 6.50% |
| Least Favorable Schedule: Minimum Rate | 1.00% |
| Least Favorable Schedule: Maximum Rate | 6.50% |
| Employer Contributions as a Share of Total Wages | 0.97% |
| Employer Contributions as a Share of Taxable Wages | 1.56% |
| Trust Fund Solvency Ratio | 2.45 |
| New Employer Rate | 1.00% |
Unemployment Insurance Taxes: Experience Formulas and Charging Methods
| Variable | Alaska |
|---|---|
| Experience Formula Based On | Payroll Decline |
| Benefits Charged in Proportion to Base-Period Wages | n.a. |
| Charged If Employee's Benefit Award Is Reversed | n.a. |
| Charged for Reimbursements on Combined Wage Claims | n.a. |
| Charged If Employee Left Voluntarily | n.a. |
| Charged If Employee Was Discharged for Misconduct | n.a. |
| Charged If Employee Refused Suitable Work | n.a. |
| Charged If Employee Continues to Work Part-Time | n.a. |
Unemployment Insurance Taxes: Other UI Base Variables
| Variable | Alaska |
|---|---|
| Solvency Tax | Yes |
| Taxes for Socialized Costs or Negative Balance Employers | No |
| Loan and Interest Repayment Surtaxes | No |
| Reserve Taxes | No |
| Surtaxes for UI Administration or Non-UI Purposes | Yes |
| Temporary Disability Insurance | No |
| Voluntary Contributions | No |
| Years to Qualify for Experience Rating | 1 |
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About the Authors
Janelle Fritts is a Senior Policy Analyst with the Tax Foundation’s Center for State Tax Policy. She is the lead researcher on the annual State Tax Competitiveness Index and serves as a resource to policymakers in their efforts to modernize and improve the structures of their state tax codes. Her work has been cited in The New York Times, the Associated Press, Bloomberg, and numerous state media outlets across the country.
Jared Walczak is a Senior Fellow at the Tax Foundation, where he spent five years as Vice President of State Projects, and president of Walczak Policy Consulting.
Nicole Fox is a Policy Analyst with the Center for State Tax Policy at the Tax Foundation, where she serves as a resource to policymakers in their efforts to modernize and improve the structure of their state tax codes.
Katherine Loughead is the Vice President of State Tax Policy at the Tax Foundation, where she oversees the state tax policy team’s research agenda and serves as a resource to policymakers in their efforts to modernize and improve the structure of their state tax codes.
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