Sales Tax and Reverse Sales Tax Calculator Alaska

ALASKA [Multidirectional Calculator]
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  • Sales Tax Rate {{SalesTaxRate}}%
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AK Sales Tax Calculator: User Guide

Are you mulling over to move or expand your business in Alaska? Well! Then you should be aware of all business-related factors like paychecks, sales tax, and income tax in Alaska. As it is hard to cover all the elements, in this guide, we will stick to all the details related to Sales Tax in Alaska.

Alaska Sales Tax Facts:

  • The Alaska State doesn't levy Sales Tax on the state level.
  • The Counties in Alaska levies local sales tax ranging from 0% to 6%.
  • 69 out of 231 cities of Alaska collects local sales tax ranging between 0% and 7%. A complete listing of all municipalities that levy sales taxes along with their rates can be found here.
  • The common sales tax types levied in Alaska are Consumers use, rental tax, sales tax, sellers use, lodgings tax, and more.
  • The smallest possible Sales tax rate (combined) is 0%, which is charged in Anchorage, Alaska.
  • The highest possible Sales tax rate (combined) is 7.85%, which is charged in Homer, Alaska.
  • The average combined rate for every ZIP code in Alaska is 1.469%, which is ranked 9th highest across the nation.
  • The two largest cities in Alaska: Anchorage and Fairbanks don't charge local sales tax.
  • Any purchases aren't exempted from Sales Tax in Alaska.
  • The Use tax in Alaska is equal to a sales tax of 0%. However, it can go up to 7% after the local use tax is applied.
  • As Alaska State doesn't charge Statewide Sales Tax, it does levy excise tax on certain products, including alcohol, cigarettes & tobacco, and gasoline.

How to calculate Alaska Sales Tax?

Alaska State doesn't charge statewide sales tax. However, municipalities and boroughs are authorized to collect sales tax. The Business owners are responsible for collecting, managing, and transferring the sales tax to Alaskans residing in a location that charges local sales tax while remaining in compliance with state laws and avoid penalties and interest.

The sales tax depend on three factors:

  1. Nexus: It is a connection of business with a state. The business is only liable to pay taxes to the states with Nexus.
  2. Location and Products or Service: The sales tax rate varies from product to product and region to region, so you must check the sales tax rate applicable to your product according to the product category, county, and city in Alaska.
  3. Exemptions: Not all goods are eligible for sales tax regulation, so you should check with Alaska state government as to which goods and services sold in Alaska are subject to sales tax.

To calculate Sales Tax in Alaska, follow the steps below:

Step 1 – Determine your Nexus:

You, as a Business owner, are only required to collect sales tax if you have Sales Tax Nexus in the Alaska State. And to determine your Nexus in Alaska, you must have any of the following:

  • The physical presence of your business, such as a retail store, warehouse, or inventory.
  • The regular presence of traveling salespeople or representatives.

However, if you are Out-of-state sellers doing business in Alaska, you should contact the local governments directly to determine sales and use tax obligations. There is also a possibility that both municipal and borough taxes are applied to a single transaction, for which you may have to file sales and use tax returns with the municipality and/or borough.


Step 2 – Determine the Sales Tax Rate:

Once you have determined that your Nexus is with Alaska, next is to deduce the Sales Tax rate (Local Sales Tax only) applicable on your product, for which you can refer the tables below:

Alaska Sales Tax Rates by Location:

The Sales Tax rate is Alaska is 0%. Besides, many municipalities and cities levy additional local sales tax on taxable goods and services. Following are the Sales Tax rate for borough and cities in Alaska:

Borough
Municipality State Rate Municipality Rate Total Sales Tax
Aleutians East 0.00% 0.00% 0.00%
Aleutians West 0.00% 0.00% 0.00%
Bethel 0.00% 6.00% 6.00%
Bristol Bay 0.00% 0.00% 0.00%
Denali 0.00% 0.00% 0.00%
Dillingham 0.00% 6.00% 6.00%
Fairbanks North Star 0.00% 0.00% 0.00%
Haines 0.00% 5.50% 5.50%
Hoonah-Angoon 0.00% 3.00% 0.00%
Kenai Peninsula 0.00% 3.00% 3.00%
Ketchikan Gateway 0.00% 2.50% 2.50%
Kodiak Island 0.00% 0.00% 0.00%
Lake and Peninsula 0.00% 0.00% 0.00%
Matanuska-Susitna 0.00% 0.00% 0.00%
Nome 0.00% 5.00% 5.00%
North Slope 0.00% 0.00% 0.00%
Northwest Arctic 0.00% 0.00% 0.00%
Petersburg 0.00% 6.00% 6.00%
Prince of Wales-Hyder 0.00% 0.00% 0.00%
Southeast Fairbanks 0.00% 0.00% 0.00%
Valdez-Cordova 0.00% 0.00% 0.00%
Kusilvak 0.00% 0.00% 0.00%
Yukon-Koyukuk 0.00% 0.00% 0.00%

City
City State Rate Borough + City Rate Total Sales Tax
Akiak 0.00% 0.00% 0.00%
Akutan 0.00% 0.00% 0.00%
Alakanuk 0.00% 4.00% 4.00%
Ambler 0.00% 3.00% 3.00%
Anaktuvuk Pass 0.00% 3.00% 3.00%
Anchorage 0.00% 0.00% 0.00%
Anderson 0.00% 6.00% 6.00%
Angoon 0.00% 3.00% 3.00%
Aniak 0.00% 2.00% 2.00%
Atqasuk 0.00% 0.00% 0.00%
Barrow 0.00% 0.00% 0.00%
Bethel 0.00% 6.00% 6.00%
Brevig Mission 0.00% 3.00% 3.00%
Buckland 0.00% 6.00% 6.00%
Chefornak 0.00% 2.00% 2.00%
Chevak 0.00% 3.00% 3.00%
Cordova 0.00% 6.00% 6.00%
Craig 0.00% 5.00% 5.00%
Delta Junction 0.00% 0.00% 0.00%
Dillingham 0.00% 6.00% 6.00%
Eek 0.00% 2.00% 2.00%
Elim 0.00% 3.00% 3.00%
Emmonak 0.00% 3.00% 3.00%
Fairbanks 0.00% 0.00% 0.00%
Fort Yukon 0.00% 3.00% 3.00%
Galena 0.00% 3.00% 3.00%
Gambell 0.00% 3.00% 3.00%
Goodnews Bay 0.00% 3.00% 3.00%
Gustavus 0.00% 3.00% 3.00%
Homer 0.00% 7.50% 7.50%
Hoonah 0.00% 6.50% 6.50%
Hooper Bay 0.00% 4.00% 4.00%
Houston 0.00% 2.00% 2.00%
Huslia 0.00% 0.00% 0.00%
Hydaburg 0.00% 6.00% 6.00%
Juneau 0.00% 5.00% 5.00%
Kachemak 0.00% 3.00% 3.00%
Kake 0.00% 5.00% 5.00%
Kenai 0.00% 6.00% 6.00%
Ketchikan 0.00% 6.00% 6.00%
Kiana 0.00% 3.00% 3.00%
King Cove 0.00% 4.00% 4.00%
Kivalina 0.00% 2.00% 2.00%
Klawock 0.00% 6.00% 6.00%
Kodiak 0.00% 7.00% 7.00%
Kotlik 0.00% 3.00% 3.00%
Kotzebue 0.00% 6.00% 6.00%
Koyuk 0.00% 2.00% 2.00%
Kwethluk 0.00% 5.00% 5.00%
Lower Kalskag 0.00% 0.00% 0.00%
Manokotak 0.00% 2.00% 2.00%
Marshall 0.00% 4.00% 4.00%
McGrath 0.00% 0.00% 0.00%
Mountain Village 0.00% 3.00% 3.00%
Napakiak 0.00% 4.00% 4.00%
Napaskiak 0.00% 3.00% 3.00%
Nenana 0.00% 4.00% 4.00%
New Stuyahok 0.00% 0.00% 0.00%
Nightmute 0.00% 2.00% 2.00%
Nome 0.00% 5.00% 5.00%
Noorvik 0.00% 4.00% 4.00%
North Pole 0.00% 4.00% 4.00%
Nuiqsut 0.00% 0.00% 0.00%
Nulato 0.00% 0.00% 0.00%
Nunapitchuk 0.00% 4.00% 4.00%
Ouzinkie 0.00% 3.00% 3.00%
Palmer 0.00% 3.00% 3.00%
Petersburg 0.00% 6.00% 6.00%
Pilot Station 0.00% 4.00% 4.00%
Point Hope 0.00% 3.00% 3.00%
Port Lions 0.00% 0.00% 0.00%
Quinhagak 0.00% 3.00% 3.00%
Russian Mission 0.00% 0.00% 0.00%
Saint Marys 0.00% 3.00% 3.00%
Saint Paul 0.00% 3.00% 3.00%
Sand Point 0.00% 4.00% 4.00%
Savoonga 0.00% 3.00% 3.00%
Saxman 0.00% 6.50% 6.50%
Scammon Bay 0.00% 4.00% 4.00%
Selawik 0.00% 6.50% 6.50%
Seldovia 0.00% 5.50% 5.50%
Seward 0.00% 7.00% 7.00%
Shishmaref 0.00% 2.00% 2.00%
Shungnak 0.00% 2.00% 2.00%
Sitka 0.00% 5.00% 5.00%
Soldotna 0.00% 6.00% 6.00%
St. Michael 0.00% 4.00% 4.00%
Stebbins 0.00% 3.00% 3.00%
Tanana 0.00% 2.00% 2.00%
Thorne Bay 0.00% 6.00% 6.00%
Togiak 0.00% 2.00% 2.00%
Toksook Bay 0.00% 2.00% 2.00%
Unalakleet 0.00% 5.00% 5.00%
Unalaska 0.00% 3.00% 3.00%
Upper Kalskag 0.00% 0.00% 0.00%
Valdez 0.00% 0.00% 0.00%
Wainwright 0.00% 0.00% 0.00%
Wasilla 0.00% 3.00% 3.00%
Whittier 0.00% 0.00% 0.00%
Wrangell 0.00% 7.00% 7.00%

Note: There are few non-taxable products required by state law. For information about such a product, you have to contact the municipality directly.

Step 3 – Calculate Sales Tax:

After the determination of the Sales Tax rate according to the location, it is easy to calculate the sales tax amount charged on the product and gross price (amount after tax) of a product.

Example # 1:

For instance, you are selling a LED TV on your store in Bethel, Alaska, having a net price tag of $500. The amount that a buyer has to pay (including sales tax) would be:

Manual Method:

Net Price (amount before Tax) of a LED TV: $500

Total Sales Tax rate: 0% (Alaska State) + 0% (Bethel Census Area) + 6% (Bethel) = 6%


Total Sales Tax amount = $500 x 6% = $30

Gross Price (Amount after Tax) = 500 + 30 = $530


It means the amount the buyer has to pay for a LED TV on a cash counter would be $530.


Using our Sales Tax Calculator:

All of the steps mentioned above can be skipped to get an instant result using our Sales Tax Calculator. All you need is:

  1. Input the $500 Net Price of LED TV as Amount Before Tax
  2. Input or select 6% of combined Sales Tax Rate on the Tax Rate

Our calculator will automatically calculate the result, and represents it in 3 different forms, as shown in the image below:

alaska-sales-tax-calculator

Reverse Sales Tax Calculation Alaska

In the example above, we have explained to you to calculate the Sales Tax amount payable in a product, and the Gross Price of the Product.

But there are also instances when you are required to deduce how much sales tax buyer has actually paid on a product or you may want to check the accuracy of the sales tax indicated on your item's receipt.

This is where the Reverse Sales Tax Calculation Kicks in. And luckily, our Alaska Sales Tax Calculator can perform this calculation in no time.

Example:

Your buyer has paid $400 for a smartphone at your store in Kodiak, AK. Now the buyer is inquiring how much the cell phone actually costs before the sales tax was added. So you need to follow the steps below to determine the amount before tax (net price) of a smartphone:

Gross Price (Amount after Tax) of Smart Phone: $400

Total Sales Tax rate: 0% (Alaska State) + 0% (Kodiak Island Borough) + 7% (Kodiak) = 7%

Manual Method:

Gross Price with sales tax = [Net Price × (tax rate in decimal form + 1)]

400 = [Net Price x ((7/100) + 1)]

400 = Net Price x 1.07

$373.8 = Net Price


So the original Price (net price) of the Smartphone was $373.8.


Using our Sales Tax Calculator:

You can also use our Sales Tax Calculator for Reverse Sales Tax calculation to skip the above mentioned manual method. All you need is:

  1. Input the $400 Gross Price of LED TV as Amount after Tax
  2. Input or select 7% of combined Sales Tax Rate on the Tax Rate

Our calculator will automatically calculate the result, and represents it in 3 different forms, as shown above.


Also Check: Alaska Paycheck Calculator to Calculate your Paycheck in Alaska State including all taxes and take home pay.

FAQs

Answer: The Alaska State doesn't levy Sales Tax on the state level. However, several municipality, borough, and cities in Alaska are allowed to collect Local Sales Tax, which ranges between 0% and 7%.

Answer: No, Anchorage city in Alaska doesn't levy any state or local sales tax.

Answer: No, Alaska doesn't have sales tax on cars on the state level. However, many counties and cities in Alaska charge their own local sales taxes, which varies from location to location.

Answer: Cities like Fairbanks, Anchorage, Badger, College, and Dutch Harbor are among the cities with 0% sales tax in Alaska.

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