This guide summarizes how small business taxes are structured in Alaska and what that means for your bookkeeping. It links to official sources from the Alaska Department of Revenue, Tax Division and other state agencies; rates, thresholds and due dates change, so always confirm current figures there before filing.

No statewide sales tax or individual income tax

Alaska has no statewide sales tax and no individual income tax, so there is no state income tax withholding from wages. The Alaska Department of Revenue, Tax Division administers corporate income tax for C corporations and a range of industry-specific taxes, such as those on fisheries, mining, oil and gas, alcohol and tobacco.

Local sales taxes

Many Alaska boroughs and cities levy their own sales taxes, along with bed taxes and other local levies. Each jurisdiction sets its own rates, exemptions and filing rules. Many local jurisdictions participate in a remote seller commission that administers sales tax for sellers without a physical presence.

A state business license

Nearly every business operating in Alaska must hold an Alaska business license issued by the Division of Corporations, Business and Professional Licensing, renewed every two years. Entities also file biennial reports with the division.

Employers: employees pay unemployment tax too

Alaska is one of very few states where employees as well as employers contribute to unemployment insurance. Employers withhold the employee share and remit it with their own contribution to the Employment Security Tax program.

Bookkeeping for Alaska filings

  • Withhold and track the employee share of Alaska unemployment insurance separately from the employer share
  • Keep a list of each borough or city where you collect local sales tax, with its own filing schedule
  • Diary the biennial business license renewal and entity report

Official Alaska sources

We support Alaska businesses remotely with bookkeeping, payroll and tax services. See all state guides or the small business tax glossary.