The facts on Alaska’s Tax Climate

  • 0%
    individual income tax
    none
  • 9.4%
    corporate income tax
    10 brackets
  • 0%
    sales tax
    local only
  • $1,728
    property tax
    collections per capita

Alaska’s Individual Income Tax System 
Alaska levies no individual income taxes, joining six other states with the same policy: Wyoming, Washington, Nevada, Florida, Texas and South Dakota.
50-State Table of Individual Income Tax Rates

50-State Table of State Individual Income Tax Collections

50-State Table of State and Local Individual Income Tax Collections Per Capita

Tax Freedom Day Arrives on April 5 in Alaska

 

Tax Freedom Day is the day when Americans finally have earned enough money to pay off their total tax bill for the year. In 2012, Alaska taxpayers work until April 5 (ranked 45th nationally) to pay their total tax bill.

 

 

 

Alaska’s State and Local Tax Burden Lowest in the Nation

Since 1990, Alaska’s state and local tax burden has consistently been the nation’s lowest. Alaska’s 2009 tax burden of 6.3% of income is well below the national average of 9.8%. Alaska’s tax burden has decreased overall from 11.0% (12th nationally) in 1977 to 6.3% (50th nationally) in 2009. Alaskans pay $2,973 per capita in state and local taxes.

Before the Trans-Alaska pipeline was finished in 1977, taxpayers in Alaska bore the second-highest tax burden in the country. By 1980, with oil tax revenue pouring in, Alaska repealed its personal income tax and started sending out checks instead. The tax burden plummeted, and now Alaskans are the least taxed.

Alaska’s State-Local Tax Burden, 1977-present
Other States’ State/Local Tax Burdens
Map of U.S. Showing all State’s Burdens and Ranks
Historical Chart Comparing All States’ State/Local Tax Burdens from 1977 to 2009

Alaska’s 2013 Business Tax Climate Index Ranks 4th

Alaska ranks 4th in the Tax Foundation’s State Business Tax Climate Index. The Index compares the states in five areas of taxation that impact business: corporate taxes; individual income taxes; sales taxes; unemployment insurance taxes; and taxes on property, including residential and commercial property. The ranks of neighboring states are as follows: Hawaii (37th), Oregon (13th), Washington (6th), and California (48th).

50-State Comparison of Business Tax Climates (data only)
2013 State Business Tax Climate Index (full study)