General tax structure- Alaska levies a corporate income tax on Alaska taxable income which is based on federal taxable income with certain Alaska adjustments. Multistate corporations apportion income on a water's edge basis using the standard apportionment formula of property, payroll and sales. Oil and gas corporations use a modified apportionment formula applied to worldwide income. Tax rates are graduated from 1% to 9.4% in increments of $10,000 of taxable income. The 9.4% maximum rate applies to taxable income of $90,000 and over.
Alaska is the largest state in the United States, however, for all its vastness, only a small portion of the land mass is subject to a property tax. There are approximately 395 communities in Alaska, many of which still remain unincorporated. There are 162 incorporated municipalities (Local Governments). Of those 162, 18 are incorporated into Boroughs (Boroughs are a rough equivalent to counties) and the remainder are incorporated as cities. Of the 18 Boroughs, only 14 levy a property tax. Only 11 Cities located outside of Boroughs levy a property tax. Therefore, only 25 municipalities in Alaska (either cities or boroughs) levy a property tax.
Businesses which pay employees must register with the state and pay state unemployment taxes. Self-employed individuals who pay themselves wages from their business are also subject to unemployment taxes.
Sales taxes- No statewide sales tax; however, local cities can assess up to 7%.
Business licenses- Alaska requires several business and professional licenses. Corporation, Business and Professional Licensing
Other Resources
Alaska State Sales Tax Rates and Requirements
Alaska Department of Revenue - Most tax related questions
AK Small Business Assistance Center - Information on starting an LLC or corporation
Corporation, Business and Professional Licensing - Information on specific industry regulations
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Posted Dec 31, 1969 4:33:30 PM by: Alaska State Sales Tax Rates and Requirements | Education