As an e-commerce seller, you will need to collect sales tax in Alaska if you have:
(1) gross sales that exceed $100,000 or 200 transactions in the current or previous year (economic nexus), or
(2) Physical presence in Alaska (physical nexus).
Alaska does not have a state sales tax. Many boroughs, cities, and towns, however, have enacted sales taxes. Alaska has created The Alaska Remote Seller State Sales Tax Commission (ARSSTC) to provide a single point of administration for localities that choose to conform their sales taxes to a Uniform Code. The Uniform Code mandates several uniform procedures but leaves the local governments with broad flexibility on the tax base and rates.
Below, we will highlight some of the basic provisions of Alaska sales tax law.
What is the tax rate range for Alaska?
State: Alaska does not have a general sales tax, therefore the rate is 0%. Alaska Department of Revenue - Tax Division
Local: Alaska localities impose their own sales tax at rates ranging from 0% to 9.5%. Alaska Remote Seller Sales Tax Commission (ARSSTC)
Do you have physical or economic nexus in Alaska?
Physical nexus. Certain business activities create physical nexus in Alaska. If you have physical nexus, you are required to collect and remit sales tax on all sales that are shipped to Alaska. Examples of business activities that can create physical nexus in Alaska include:
Own or lease physical property in the state,
Have inventory in the state,
Regular presence of salespersons (even if traveling)
Economic nexus. Remote sellers that exceed $100,000 in gross sales or 200 transactions in the previous or current calendar year are required to collect and remit sellers use tax.
Although there is no state tax, the economic threshold is applied on a state-wide basis.
Exempt sales are included in gross sales.
Your sales through a marketplace provider are also included in your calculation.
If buyers are located within a jurisdiction that has adopted the code, sellers have 30 days to begin collecting sales tax after they have reached the threshold.
Alaska's Remote Seller's Code
What are examples of sales of taxable items?
All taxable items are determined by local jurisdictions, some examples within that may be taxable are:
Tangible personal property, unless specifically exempted
Software as a service (SaaS)
What are examples of sales of nontaxable/exempt items?
All non-taxable items are determined by local jurisdictions, some examples within that may be taxable are:
Certain agricultural items
Alaska Tax Facts
Are there any sales tax holidays?
The state of Alaska does not have a state-wide sales tax, therefore does not have any sales tax holidays. However, local jurisdictions within the state do have various sales tax holidays. A few examples include:
Kodiak, AK – Annual sales tax holiday on March 4th
Ketchikan, AK – Annual sales tax holiday on October 1st
Some localities also have seasonal rate changes to capitalize on the tourist trade, including Homer, Seldovia, Sitka, and the Kenai Peninsula Borough.
Is Alaska a member of the SST (Streamlined Sales Tax)?
Currently, Alaska is not a full or associate member of the Streamlined Sales Tax Governing Board (SSTGB).
How to get a sales tax permit / links to register in this state?
You can register online at: Alaska Remote Sellers Sales Tax Commission.
Local rate tables are available at Alaska Propert Tax Jurisdiction - Department of Commerce.