Key takeaways
- No statewide sales tax: Alaska has no state sales tax, but 100+ cities and boroughs levy their own local sales taxes, at rates up to around 7%.
- Economic nexus: Remote sellers have nexus once gross sales into Alaska reach $100,000 in the current or previous calendar year. The 200-transaction test was repealed on January 1, 2025.
- One registration via ARSSTC: A single ARSSTC registration covers all member jurisdictions, and returns are filed through one portal. Late payment costs 5% per month, up to 25%.
Alaska sales tax key facts (2026)
| Item | Alaska |
|---|---|
| Statewide sales tax rate | None (no state sales tax) |
| Local sales tax | Yes — 100+ city/borough jurisdictions |
| Economic nexus threshold | $100,000 statewide gross sales (current or prior year) |
| Transaction-count threshold | None (200-transaction prong repealed Jan 1, 2025) |
| Sourcing | Destination (local jurisdiction) |
Collect and file Alaska sales tax with Taxually: LumaTax monitors your nexus, registers you and files your returns.
Is SaaS taxable?
Varies by jurisdiction.
| Item | Alaska |
|---|---|
| Remote-seller registration | ARSSTC portal (one registration, all member jurisdictions) |
| Governing bodies | Local jurisdictions + ARSSTC |
What is the sales tax rate in Alaska?
Alaska has no statewide sales tax. Instead, more than 100 cities and boroughs levy their own local sales taxes, with rates that vary widely by jurisdiction (commonly in the low single digits up to around 7%).
For remote sellers, the Alaska Remote Seller Sales Tax Commission (ARSSTC) coordinates collection across participating jurisdictions. Confirm the correct local rate through the ARSSTC portal or the relevant municipal government rather than assuming a single statewide figure.
Do you have sales tax nexus in Alaska?
Nexus is the connection that obligates your business to collect and remit Alaska sales tax. You can establish it two ways — physically or economically. Either one is enough.
Physical nexus
You have physical nexus if you have a tangible presence in Alaska, such as:
- A physical location such as an office or store in an Alaska jurisdiction
- Employees working in the state
- Inventory stored in Alaska, including 3PL or Amazon-FBA stock
- Any presence in a jurisdiction that has adopted local sales tax or the ARSSTC code
Economic nexus
Remote sellers and marketplace facilitators establish economic nexus once gross sales delivered into Alaska reach $100,000 in the current or previous calendar year. The old 200-transaction threshold was repealed effective January 1, 2025, so nexus is now revenue-only. Marketplace sales count toward the $100,000.
After crossing the threshold you must register with the ARSSTC within 30 days. One ARSSTC registration covers all participating member jurisdictions — you don’t register with each city separately. You can view the current member jurisdictions on the ARSSTC website.
What is taxable in Alaska?
Because taxability is set at the local level, what is taxable depends on the specific jurisdiction. Most tax tangible goods, but the treatment of services, digital products, and exemptions varies from one municipality to the next — always check the rules for the jurisdiction you’re selling into.
Is SaaS taxable in Alaska?
It depends on the jurisdiction. Some Alaska boroughs tax downloadable software and digital services, while others exempt intangible products. Confirm SaaS treatment with the specific municipality (or via the ARSSTC).
How is food taxed in Alaska?
There is no statewide rule. Each city or borough sets its own treatment of groceries and prepared food — some exempt food, others tax it. Check the local municipality for specifics.
How to register for an Alaska sales tax permit
How you register depends on your presence. If you have a physical location in Alaska, contact the Alaska Department of Revenue – Tax Division and the relevant city or borough. If you’re a remote seller over the economic-nexus threshold, register through the ARSSTC portal. Taxually can also handle registration for you.
To register with the ARSSTC you’ll need your business name and address, EIN, contact details, and sales-volume information. There is no fee, and a single ARSSTC registration covers all participating jurisdictions.
How to collect sales tax in Alaska
Since there is no statewide tax, businesses with nexus collect at the rate set by each local jurisdiction. The ARSSTC portal helps you determine and apply the correct rate for each sale into a member jurisdiction.
Filing and paying Alaska sales tax
Filing frequencies and due dates are set by the individual jurisdictions (or coordinated through the ARSSTC for member jurisdictions). Remote sellers file returns and remit payments for all member jurisdictions through the single ARSSTC portal; for non-member localities, check directly with the local government. Taxually’s software automates the full process.
Penalties for late or non-compliant filing
Penalties depend on the municipality. As a typical pattern under the ARSSTC code:
- A 5% penalty on unpaid tax for the first month, plus an additional 5% for each following month, up to a maximum of 25%.
- Interest also accrues on late payments.
Always confirm the exact penalty and interest terms for the specific jurisdiction.
Frequently asked questions
Does Alaska have a sales tax?
There is no statewide sales tax, but more than 100 local jurisdictions levy their own, and remote sellers may owe tax through the ARSSTC.
What is the economic nexus threshold for Alaska?
$100,000 in statewide gross sales in the current or previous calendar year. There is no transaction-count threshold — it was repealed effective January 1, 2025.
Do remote sellers register with each Alaska city?
No. Register once with the ARSSTC and you’re covered for all participating member jurisdictions.
Is SaaS taxable in Alaska?
It depends on the local jurisdiction — some tax digital products and software, others exempt them.
When are Alaska sales tax returns due?
Deadlines are set by each jurisdiction; the ARSSTC coordinates filing and remittance for its member jurisdictions through one portal.
