Alaska — Sales & Use Tax

Alaska does not impose a statewide sales or use tax. The State of Alaska has no general sales tax levied at the state level, making it one of five U.S. states without such a tax.

Sales and use tax authority in Alaska rests exclusively with local governments. Under Alaska Statutes Title 29, boroughs (the Alaska equivalent of counties) and cities may independently levy and collect local sales taxes on sales, rents, and services provided within their boundaries. A borough may also impose a use tax on the storage, use, or consumption of tangible personal property, provided the use tax rate equals the sales tax rate. Over 100 Alaska municipalities currently impose local sales taxes, with single-jurisdiction rates ranging from 1% to 7%, though the two largest cities—Anchorage and Fairbanks—do not levy general sales taxes.

Alaska statute imposes no maximum rate cap on local sales taxes; the Alaska Department of Commerce confirms that "at one time there was a limit on the maximum amount a municipality could charge for a sales tax, but that limit has been removed." Each municipality sets its rate subject to voter approval. The Alaska Department of Commerce reports that individual single-jurisdiction rates range from 1% to 7% as of 2026. Where both a borough and a city within that borough levy sales taxes, the consumer pays the combined total of both taxes; combined rates in overlapping jurisdictions may exceed 7%.

Each local jurisdiction sets its own tax base, exemptions, and filing requirements. There is no centralized state administration for local sales taxes, except for the voluntary Alaska Remote Seller Sales Tax Commission (ARSSTC), which provides a unified filing system for remote sellers in participating jurisdictions.

Source: Alaska Department of Commerce – Sales Tax Information Source: Alaska Department of Commerce – Alaska Tax Facts Source: Alaska Department of Commerce – Sales Tax, Local Government Online Source: Alaska Statutes § 29.45.650 (Borough Sales and Use Tax)

Remote sellers and marketplace facilitators must register with the Alaska Remote Seller Sales Tax Commission (ARSSTC) if their statewide gross sales into Alaska meet or exceed $100,000 in the current or previous calendar year. The threshold calculation is all-inclusive: sellers count every sale delivered into Alaska, including marketplace-facilitated sales and sales for resale (wholesale), regardless of taxability, exemption status, or whether another party collects the tax.

Background: the Alaska Remote Seller Sales Tax Commission

Alaska has no statewide sales tax. The Alaska Remote Seller Sales Tax Commission was established in 2019 via intergovernmental agreement among participating Alaska municipalities to provide a unified filing system for remote sellers. Each participating municipality adopted the ARSSTC Uniform Code by local ordinance. The Uniform Code establishes the threshold rules, filing requirements, and tax base for remote sellers and marketplace facilitators operating in member jurisdictions. Not all Alaska municipalities participate; only remote sellers making sales into ARSSTC member jurisdictions use the system.

The Alaska Department of Commerce confirms that ARSSTC "provides a unified filing system for remote sellers in participating jurisdictions" and that "local jurisdictions voluntarily join the ARSSTC by adopting the uniform code." However, the Department of Commerce does not publish or maintain the ARSSTC Uniform Code text itself. The Uniform Code and related operational guidance are published and maintained by ARSSTC, an independent intergovernmental organization, at arsstc.org.

The $100,000 statewide gross sales threshold

According to ARSSTC guidance, remote sellers and marketplace facilitators must register if their statewide gross sales into Alaska met or exceeded $100,000 in the current or previous calendar year. The prior 200-transaction threshold was eliminated effective January 1, 2025; only the $100,000 sales threshold remains.

All gross sales delivered into Alaska count—including marketplace-facilitated and wholesale sales

ARSSTC operational guidance states that sellers must count "all transactions throughout the State of Alaska to determine if they meet the threshold, regardless if the transactions are in a taxing community or are tax exempt." The ARSSTC Uniform Code Section 040(B) (as adopted by participating municipalities through local ordinance) provides: "For purposes of determining whether the Threshold Criteria are met, remote sellers or marketplace facilitators shall include all gross sales, from all sales of goods, property, products, or services rendered within the state of Alaska."

Under this all-inclusive rule, the threshold calculation includes:

• Marketplace-facilitated sales — sales a seller makes through a marketplace platform such as Amazon, eBay, or Etsy, even when the marketplace facilitator collects and remits the tax on behalf of the seller
• Sales for resale (wholesale sales) made to buyers purchasing for resale, even though these sales will be exempt from tax collection when the buyer provides a valid resale certificate
• All other exempt sales, including sales to tax-exempt entities or of exempt products
• Sales delivered anywhere in Alaska, whether the destination is within a taxing jurisdiction or a non-taxing area

The only category excluded from the threshold calculation, according to ARSSTC guidance, is physical presence sales—sales where the seller has a physical presence (office, warehouse, inventory, employee, or sales agent) in the local jurisdiction where delivery occurs. Physical presence sales are reported and remitted directly to that local jurisdiction, not through ARSSTC.

Marketplace sellers who sell ONLY through marketplaces

A marketplace seller who makes all sales exclusively through marketplace facilitators (no direct sales through the seller's own website or other channels) is not required to register with ARSSTC, according to the ARSSTC Uniform Code Section 050(A) (as adopted locally). The Code states: "If the remote seller is a marketplace seller and only makes sales in Alaska through a marketplace, the marketplace seller is not required to register with the Commission." The marketplace seller must submit an affidavit to ARSSTC attesting to this fact.

However, ARSSTC guidance instructs that a marketplace seller who makes both marketplace-facilitated sales and direct sales (for example, through the seller's own website or at a trade show) must count all Alaska sales—both marketplace-facilitated and direct—when calculating the threshold. If the combined total meets or exceeds $100,000, the seller must register with ARSSTC within 30 days. The seller will collect and remit tax only on the direct sales; the marketplace facilitator continues to collect and remit tax on the marketplace-facilitated sales.

Marketplace facilitators: threshold and collection obligations

A marketplace facilitator (the platform itself—Amazon, eBay, Etsy, etc.) calculates its own threshold separately from individual sellers. ARSSTC guidance states that marketplace facilitators "calculate economic threshold using ALL sales into Alaska from ALL Marketplace Sellers on the platform, regardless of destination or taxability status of end buyer."

Once a marketplace facilitator meets the threshold and registers, it must collect and remit sales tax for all marketplace sellers on the platform for all sales into ARSSTC member jurisdictions, according to ARSSTC guidance, "regardless of Marketplace Sellers' individual capacity to meet the economic threshold." The facilitator's collection obligation applies to all sales it facilitates, even sales by individual marketplace sellers who would not independently meet the $100,000 threshold.

Practical examples

Wholesale-only seller: A remote seller making $100,000 or more annually in wholesale-only sales delivered into Alaska meets the ARSSTC economic nexus threshold and must register. After registration, the seller files periodic returns through the ARSSTC portal but collects $0 in tax if all sales are documented resales. The seller must maintain resale certificates and report the exempt sales on each filing. ARSSTC guidance provides that sellers must file returns even when no tax is due; failure to file can result in penalties.

Marketplace-only seller: A remote seller making $100,000 or more in sales through marketplace platforms but zero direct sales is not required to register with ARSSTC, provided the seller submits the required Marketplace Seller Affidavit to ARSSTC. The marketplace facilitator collects and remits the tax. If the seller begins making any direct sales, registration becomes mandatory within 30 days if the total (marketplace + direct) meets or exceeds $100,000, according to ARSSTC guidance.

Multi-channel seller: A remote seller making $80,000 in direct sales through its own website and $30,000 in marketplace-facilitated sales (total $110,000) meets the threshold and must register. The seller will collect and remit tax on the $80,000 in direct sales; the marketplace facilitator will collect and remit tax on the $30,000 in marketplace sales. Both types of sales count toward the threshold, even though the seller does not collect tax on the marketplace portion.

Source limitation and practitioner guidance

The detailed threshold rules, marketplace seller carve-outs, affidavit procedures, and filing obligations described above are derived from the ARSSTC Uniform Code and ARSSTC operational guidance published at arsstc.org. The ARSSTC Uniform Code is adopted by each participating municipality through local ordinance—for example, the City and Borough of Juneau adopted it as Ordinance 2020-01, amending Title 69 of the Juneau Code of Ordinances—but the Uniform Code text itself is maintained centrally by ARSSTC, an independent intergovernmental organization. The Alaska Department of Commerce does not republish the Uniform Code or ARSSTC operational guidance on its website; the Department's role is limited to general informational support.

Because the ARSSTC Uniform Code is not codified in Alaska Statutes and is not published by a state agency, practitioners seeking authoritative answers to threshold calculation questions, marketplace seller registration requirements, or filing obligations should consult arsstc.org directly, contact ARSSTC staff, or obtain a copy of the adopted Uniform Code ordinance from an ARSSTC member jurisdiction. The Alaska Department of Commerce confirms that ARSSTC "provides a unified filing system for remote sellers in participating jurisdictions" but directs detailed compliance questions to ARSSTC.

Source: Alaska Department of Commerce – Sales Tax Information

Approximately 107 Alaska municipalities levy a general local sales tax. Single-jurisdiction rates range from 1% to 7%, with typical rates between 2% and 5%. Both boroughs (Alaska's equivalent of counties) and cities may independently levy sales taxes under Alaska Statutes § 29.45.650 and § 29.45.700.

Alaska statute imposes no maximum rate cap on local sales taxes. The Alaska Department of Commerce confirms that "at one time there was a limit on the maximum amount a municipality could charge for a sales tax, but that limit has been removed." Sales taxes are authorized only after voter approval.

Combined rates in overlapping jurisdictions

Where both a borough and a city within that borough levy sales taxes, the consumer pays the combined total of both taxes. For example, a location subject to both a 5% city tax and a 2% borough tax would have a combined rate of 7%. The 1%–7% range reported by the Alaska Department of Commerce reflects individual single-jurisdiction rates, not combined city-plus-borough totals. Combined rates in overlapping jurisdictions may exceed 7%.

Notably, Alaska's two largest cities—Anchorage and Fairbanks—do not impose general sales taxes.

Local administration

Each municipality sets its own tax base, exemptions, and filing requirements independently, with no statewide uniformity. There is no centralized state administration for local sales taxes, except for the voluntary Alaska Remote Seller Sales Tax Commission (ARSSTC), which provides a unified filing portal for remote sellers and marketplace facilitators in participating jurisdictions.

Source: Alaska Department of Commerce – Alaska Tax Facts Source: Alaska Department of Commerce – Sales Tax Information Source: Alaska Statutes § 29.45.650 (Borough Sales and Use Tax)

Remote sellers and marketplace facilitators registered with the Alaska Remote Seller Sales Tax Commission (ARSSTC) file consolidated returns covering all participating ARSSTC member jurisdictions through a single electronic portal. Filing frequencies and due dates are established by the ARSSTC Uniform Code, which each member jurisdiction adopts by local ordinance.

Filing frequency framework

The Alaska Department of Commerce confirms that the ARSSTC "provides a unified filing system for remote sellers in participating jurisdictions." However, because Alaska has no statewide sales tax and the ARSSTC is an independent intergovernmental organization (not a state agency), the detailed filing frequency rules, eligibility criteria for reduced filing frequencies, and due-date schedules are set forth in the ARSSTC Uniform Code itself, which is not codified in Alaska Statutes or published on a state .gov website.

Each participating municipality adopts the ARSSTC Uniform Code by local ordinance. For example, the City and Borough of Juneau adopted the Uniform Code as Ordinance 2020-01, amending Title 69 of the Juneau Code of Ordinances. However, the Uniform Code text is uniform across all adopting jurisdictions and is maintained centrally by ARSSTC at arsstc.org, not by individual municipalities or the Alaska Department of Commerce.

What can be confirmed from state sources

The Alaska Department of Commerce directs businesses seeking filing frequency information to contact ARSSTC directly or consult the ARSSTC portal and website. The Department's role is limited to general informational support; it does not administer, publish, or interpret the ARSSTC Uniform Code or establish filing frequencies for remote sellers.

Alaska Statutes Title 29 grants boroughs and cities the authority to levy local sales taxes under § 29.45.650 and § 29.45.700, but these statutes do not address remote seller filing frequencies, economic nexus thresholds, or the ARSSTC system—those matters are governed by the locally adopted ARSSTC Uniform Code.

Practitioner guidance

Based on review of ARSSTC operational materials (which are not hosted on a .gov or .us domain and therefore cannot be cited as primary authority under this guide's sourcing rules), the following filing frequency framework appears to apply, but practitioners should verify directly with ARSSTC or obtain a copy of the adopted Uniform Code ordinance from an ARSSTC member jurisdiction:

• Monthly filing is the standard default frequency for all registered remote sellers and marketplace facilitators
• Quarterly filing appears to be available for low-volume sellers who apply to the Commission and receive approval
• Annual filing does not appear to be offered
• Zero returns must be filed even when no tax is due
• Monthly returns appear to be due the last day of the month following the reporting period
• Quarterly returns appear to follow a standard calendar-quarter schedule (Q1 due April 30, Q2 due July 31, Q3 due October 31, Q4 due January 31)

Source limitation and next steps

Because the authoritative source for ARSSTC filing frequencies—the ARSSTC Uniform Code—is maintained by an intergovernmental organization and not codified in Alaska state law or published on an official state .gov website, practitioners seeking definitive answers to filing frequency questions should:

1. Contact ARSSTC directly at the contact information provided on arsstc.org
2. Consult the ARSSTC filing portal at arsstc.munirevs.com
3. Obtain a copy of the adopted ARSSTC Uniform Code ordinance from an ARSSTC member jurisdiction (such as the City and Borough of Juneau, which adopted it as Ordinance 2020-01)
4. Review the ARSSTC Uniform Code text maintained at arsstc.org/about/code/

The Alaska Department of Commerce website confirms the existence of the ARSSTC system and directs businesses to ARSSTC for compliance details, but does not republish the Uniform Code or provide detailed filing frequency rules.

Source: Alaska Department of Commerce – Sales Tax Information Source: Alaska Statutes § 29.45.650 (Borough Sales and Use Tax) Source: Alaska Statutes § 29.45.700 (City Sales Tax)

Remote sellers that meet or exceed the $100,000 statewide gross sales threshold must register with the Alaska Remote Seller Sales Tax Commission (ARSSTC) within 30 days of meeting the threshold. A single ARSSTC registration covers all participating member jurisdictions. The 30-day deadline is a registration requirement; the collection obligation and its effective date are determined separately under the ARSSTC Uniform Code.

Registration deadline

The ARSSTC Uniform Code Section 050(B) requires a remote seller or marketplace facilitator meeting the threshold criteria to "apply for a certificate of sales tax registration within thirty (30) calendar days of the effective date of this Code or within thirty (30) calendar days of meeting the Threshold Criteria whichever occurs second." The seller applies online through the ARSSTC filing portal at arsstc.munirevs.com.

An extension of the registration deadline may be granted "based on criteria established by the Commission, based on evidence produced to describe time necessary to update software or other technical needs, not to exceed ninety (90) days." A seller unable to complete registration within 30 days must apply for the extension; it is not automatic.

When collection must begin

The ARSSTC Uniform Code Section 050 states: "The obligations to collect and remit sales tax required by this chapter are applicable at the effective date of the member jurisdiction's ordinance adopting the Alaska Remote Seller Sales Tax Code." The Code further specifies: "There is no retroactive application or collection of sales tax."

For a seller that crosses the threshold after a jurisdiction has already adopted the ARSSTC Uniform Code, the collection obligation begins when the seller meets the threshold, not on the date of registration. ARSSTC guidance states that once a seller determines it has met the threshold, it must "turn on and apply sales tax collection to sales on goods and services delivered into member jurisdictions." However, ARSSTC also recognizes implementation delays: "If a seller is not able to initiate tax collection immediately, they must contact ARSSTC and establish a timeframe for implementation."

Liability for uncollected tax

Section 050 of the Uniform Code provides: "Failure by the remote seller or marketplace facilitator to collect the tax shall not affect the remote seller's, or marketplace facilitator's, responsibility for payment to the Commission." A seller that meets the threshold but delays registration or fails to collect tax remains liable for the tax due on taxable sales made into member jurisdictions from the date the threshold was crossed. Voluntary disclosure programs may be available for sellers that register late.

Physical presence sellers

Sellers with physical presence in a local jurisdiction—such as an office, warehouse, storefront, inventory, or sales agent—must register directly with that jurisdiction rather than through ARSSTC. A business with both physical presence and remote sales must separate the two revenue streams, filing physical presence sales directly with the local jurisdiction and remote sales through ARSSTC.

Source limitation

The ARSSTC Uniform Code is adopted by each participating municipality through local ordinance. It is not codified in Alaska Statutes or published by the Alaska Department of Commerce or another state agency. The Alaska Department of Commerce confirms that ARSSTC "provides a unified filing system for remote sellers in participating jurisdictions" and directs businesses to arsstc.org for registration and compliance details, but the Department does not republish the Uniform Code text or detailed registration and collection-start rules. The Uniform Code and related operational guidance are maintained and published by ARSSTC, an independent intergovernmental organization, at arsstc.org. Practitioners seeking the full Uniform Code text or clarification of a specific timeline should consult arsstc.org or contact an ARSSTC member jurisdiction for the adopted ordinance.

Source: Alaska Department of Commerce – Sales Tax Information Source: Alaska Department of Commerce – Business Licensing FAQs

Alaska statute explicitly authorizes local governments to impose sales tax on services, but each jurisdiction independently defines which services are taxable through local ordinance. Unlike states with a uniform statewide sales tax base, Alaska has no state-level rule governing service taxability—the determination is entirely local.

Statutory authority for taxing services

Alaska Statutes § 29.45.650(a) grants boroughs the power to "levy and collect a sales tax on sales, rents, and services provided in the borough." The statute specifies that the sales tax "may apply to any or all of these sources," and that "exemptions may be granted by ordinance." Section 29.45.700 extends identical taxing authority to cities. This framework gives each municipality broad discretion to define its tax base, including which services are subject to tax and which are exempt.

The statute does not define "services" or provide a list of taxable or exempt service categories. State law imposes very few mandatory exemptions; nearly all exemptions are set by local ordinance. The Alaska Department of Commerce confirms that "the state constitution and other state law give very broad authority to cities and boroughs regarding sales tax," and that "there are very few non-taxable items (exemptions) required by state law."

Variation across jurisdictions

Because taxability is determined locally, a service taxable in one Alaska municipality may be exempt in another. Common patterns observed across jurisdictions include:

• Repair and fabrication services: Services that produce or repair tangible personal property are frequently taxable.
• Professional services: Treatment varies widely. Some jurisdictions tax professional services broadly; others exclude categories such as legal, accounting, or medical services.
• Digital services and SaaS: The ARSSTC Uniform Code, adopted by participating jurisdictions for remote sellers, defines taxable sales broadly and generally includes software-as-a-service and digital products in the tax base. Jurisdictions that have not adopted the ARSSTC code may treat digital services differently.
• Lodging and transient accommodations: Many jurisdictions impose sales tax on short-term lodging, though some levy separate hotel/motel "bed taxes" instead.

A practitioner determining taxability for a specific service must consult the municipal code of each jurisdiction where the service is provided or delivered. There is no centralized state guidance, taxability matrix, or uniform definition applicable across all Alaska local governments.

ARSSTC remote seller framework

For remote sellers registered under the Alaska Remote Seller Sales Tax Commission, the ARSSTC Uniform Code provides standardized definitions of taxable transactions, including services, for participating jurisdictions. The Uniform Code's definition of "sales price" is broad and encompasses charges for services unless a specific local exemption applies. Remote sellers filing through ARSSTC follow the combined tax base of all member jurisdictions, which generally includes services.

Sellers with physical presence in a local jurisdiction do not use the ARSSTC system; they file directly with the jurisdiction under that jurisdiction's local ordinance, which may differ from the ARSSTC Uniform Code definitions.

Practice note

When a client asks whether a service is taxable in Alaska, the correct answer depends on the specific municipality. A blanket statement that "services are taxable" or "services are exempt" in Alaska is incorrect. The operative question is: which Alaska jurisdiction(s) is the service provided in, and what does that jurisdiction's sales tax ordinance say? Practitioners should obtain and review the relevant municipal code or contact the local tax administrator directly.

Source: Alaska Statutes § 29.45.650 (Borough Sales and Use Tax) Source: Alaska Department of Commerce – Sales Tax Information