Sales Tax Guide for Alaska

Doing business in Alaska?

Unlike most states, Alaska doesn’t have a statewide sales tax; but that doesn’t mean you’re off the hook.

With a patchwork of local sales tax rules and unique compliance requirements, navigating tax obligations here can be tricky for entrepreneurs and e-commerce sellers alike.

This sales tax guide for Alaska breaks down everything you need to know to stay compliant and avoid costly surprises, including:

• Who needs to collect local sales tax in Alaska

• How to register with local jurisdictions

• Available exemptions

• Best practices for filing

• Common mistakes online sellers make

Let’s get started.

Alaska Sales Tax at a Glance

Sales Tax 101: The Basics for Alaska Businesses

Unlike most states, Alaska has no statewide sales tax. Instead, sales taxes are levied by many cities and boroughs (local governments). This means your obligations depend on where your buyers are located and not just where your business is based.

What Is Sales Tax in Alaska?

There’s no state-collected sales tax, but over 100 cities and boroughs do collect their own sales taxes.

The taxes often range from 1% to 7.5%. If you sell into these places, you may need to collect and remit local sales tax.

Who Actually Charges Sales Tax?

As a seller, you’re a collection agent for the local government.

When you make a sale to a resident in, say, Anchorage (which has no sales tax), there’s nothing to collect.

But in Juneau, Sitka, Wasilla, or Kodiak? You may need to add and remit sales tax at local rates.

Remote Sellers & Online Sales: What’s Changed?

Since 2020, the Alaska Remote Seller Sales Tax Commission (ARSSTC) allows participating boroughs/cities to require out-of-state sellers (including online sellers) to collect local sales tax if they cross economic nexus thresholds.

Remember, this applies even if you don’t live or have a business physically in Alaska!

Confused? doola’s experts can break it down for you, book a demo!

Do You Need to Collect Alaska Sales Tax?

Do you have to collect sales tax (or really, local tax) in Alaska? It depends on the destination of your customers.

Here’s how to know:

Where Are Your Buyers?

If your customers are in a borough/city that charges sales tax and you are either physically present or cross the economic nexus threshold for remote/internet sellers; you’re responsible.

If you are selling to Anchorage, not required; to Juneau, likely required.

What Is Nexus in Alaska?

👉🏼 Physical nexus: You have a location, employees, or inventory in a locality that collects tax.

👉🏼 Economic nexus: If you make $100,000+ in gross sales or 200+ transactions to customers in ARSSTC participating localities, you must register and collect THEIR local tax; regardless of your physical presence in the state.

What Goods Are Taxable?

Most tangible personal property (physical goods), some digital goods, and many services. Each locality can have different rules!

Check the ARSSTC for specific product/service guidance.

Marketplace Facilitators

Platforms like Amazon and Etsy may (but are not always required to) collect and remit Alaska local sales tax for you in participating boroughs/cities, depending on the facilitator’s compliance with local ordinances.

But never assume! Remember, you’re responsible if they miss a jurisdiction.

Not sure where you have nexus? Let doola analyze Alaska nexus for you.

Alaska Sales Tax Nexus Guide: E-Commerce Insights

For online sellers, these are the major Alaska sales tax nexus triggers:

• Inventory in-state: For example, using Amazon FBA with inventory in an Alaska warehouse (rare, but possible).

• Economic nexus: $100,000 in annual sales OR 200 separate transactions delivered/shipped to any ARSSTC-participating jurisdictions. See current ARSSTC FAQs here.

Once you hit those thresholds, you must register and collect in all participating cities/boroughs; each may have slightly different rules.

Alaska Local Sales Tax Rates for E-Commerce Sellers 2025

There is no state Alaska sales tax rate. Local rates vary by borough/city and are set every year by local governments, sometimes subject to annual caps or seasonal reductions.

Some cities include special rules for groceries, utilities, or seasonal sales tax rates. If you’re selling online, your platform may need to assign correct rates based on your customer’s shipping address.

Destination-Based Sourcing Means More Work for Sellers

Alaska’s local sales taxes are destination-based: you charge tax based on where the customer receives the product.

That means online sellers must track the buyer’s delivery address and apply whatever local sales tax rate, exemptions, or caps are in effect in that borough/city.

What’s Taxable in Alaska Localities?

There is no standardized state tax base! In general, expect to collect tax on:

• Tangible personal property (most physical goods)

• Some services (varies by locality)

• Some rentals (cars, lodging, etc.)

Note: Certain essential items like groceries or prescription meds might be exempted by local law, but each city/borough may be different. Always check!

Who Is Exempt?

Common exemptions include:

• Nonprofit organizations (with documentation)

• Government agencies

• Resellers with valid certificates

Each locality can have additional exemptions, so always review the relevant borough/city rules.

Registering for Alaska Local Sales Tax as an E-Commerce Seller

If you cross Alaska’s local economic nexus threshold, you must register with the Alaska Remote Seller Sales Tax Commission (ARSSTC). Registration allows you to report, collect, and remit local taxes for all member jurisdictions through one portal for most cities/boroughs.

Step-by-Step Registration

• Go to arsstc.org and complete the remote seller application.

• Gather your EIN, business name, mailing address, contact data, and sales volume estimates.

• Once registered, you’ll receive tax return filing instructions unique for ARSSTC member localities.

Note: Not all Alaska localities participate in ARSSTC. If you sell to a non-participating city, you may need to register directly with that borough/city government.

Registering can be complex. Let doola handle it for you.

Collecting Alaska Local Sales Tax: E-Commerce Tips

Once registered, you must ensure your e-commerce platform collects the right rate for the customer’s shipping location. Each city/borough can be different.

Some platforms like Shopify or BigCommerce allow you to upload a local sales tax table. Others offer plugin integrations that update rates automatically.

Marketplace facilitators (like Amazon or Etsy) may be collecting on your behalf, but ALWAYS check if they’re remitting to all correct Alaska localities; liability ultimately lands with you.

Feeling lost? doola can automate your sales tax collection/setup.

Filing and Remitting Alaska Local Sales Tax

Once you’ve collected local taxes from Alaska customers, you are required to remit those to each city/borough’s tax authority, often through the ARSSTC portal.

• File your returns monthly, quarterly, or annually (varies by locality).

• Reports usually ask for gross sales, exempted sales (with documentation), and amount of tax collected by locality.

• Filing due dates vary. Check ARSSTC schedules or city/borough websites.

If you no longer meet the economic nexus threshold, you may cancel registration, but must file a final return and pay any balance due.

Returns must often be filed EVEN IF you had no taxable sales (a “zero return”).

Let doola handle your Alaska local filings and avoid missed deadlines!

Shipping, Holidays, and Special Local Alaska Rules

Local Alaska sales tax rules sometimes tax shipping/handling charges; some localities also have seasonal sales tax rates (summer vs. winter) or holiday exemptions (rare).

Always review the customer’s local borough/city code for any special rules regarding:

• Does shipping get taxed? Sometimes in Juneau/Ketchikan yes, in others no.

• Are shipping addresses on tribal land or military bases exempt?

• Are there product-specific holidays or temporary exemptions?

Pro tip: If selling online, keep records showing you applied the correct rate to the customer’s address and that your system is set up for automatic updates.

Alaska Excise Taxes to Know

Alaska has no general sales tax, but localities may levy special excise taxes on products like:

• Tobacco/vape products

• Alcohol (beers/wines etc.)

• Fuel

• Marijuana

If you sell these items online, check both local and state regulations. Keep in mind that requirements and filing rules differ by borough and product type.

Unclear on Alaska excise taxes? Book a consult with doola’s team.

Alaska Sales Tax Penalties and Compliance Tips

Each city/borough has authority to impose late filing and payment penalties, interest, and even revoke your local business license if you’re non-compliant.

• Late returns typically incur a 5%–25% penalty plus interest.

• You are responsible for missing exemption/resale certificates (even if a customer should have been exempt).

• If you’re registered, don’t miss zero returns.

Automate tax compliance if possible, or at least schedule filing reminders. doola can keep you compliant on every Alaska tax return.

How doola Helps E-Commerce Sellers With Alaska Sales Tax

Alaska sales tax compliance is unlike any other state.

With doola, you can easily register with the ARSSTC, automate local tax rates in your online store, manage deadlines, and organize exemption documents; all so you’re always audit-ready, no matter where your customers are in Alaska.

Ready to simplify Alaska sales taxes? Book a free demo with doola and let us handle the hard part for you.