Alaska’s Permanent Fund helps offset the cost of living. In 2004, each man, woman and child living in Alaska for at least one year received a dividend check from the state government for $919.84.
Business Inventory Tax
Alaska has a business inventory tax; however, some municipalities may exempt business inventories.
Business Licenses Fee
Unless specifically exempted by statute, every business must obtain a business license at a biannual fee of $50.
Corporate Income Tax
Alaska uses a graduated percentage of taxable income ranging from 1% for net income below $10,000 to 9.4% for net income over $90,000. Alternative minimum tax rate on capital gains is 4.5%.
Personal Income Tax
None
Personal Property Tax
Taxable
Alaska is the only state where a large part of its land mass is not subject to a property tax. While property tax is the primary method of raising revenues for many of the larger municipalities in the state, smaller municipalities favor a sales tax.
State Sales and Use Tax
Base Rate: None
Machinery Rate: None
Reduced rates applicable for sales of machines and their parts used in mining, quarrying, processing, compounding and manufacturing.
State Sales and Use Tax
Base Rate: 4%
Machinery Rate: 1.5%
There is no statewide sales tax levied. The typical sales tax rates for some municipalities are from 3%-5%.
Unemployment Insurance
Alaska charges new employers the average industry tax rate for 1 year.
