Taxes in Anchorage, Alaska
Complete tax guide for Anchorage, AK. No state income tax, 1.07% property tax, no sales tax. Calculate your total tax burden.
State Income Tax
None
Alaska
Property Tax
1.07%
Effective rate
Sales Tax
None
Combined rate
Tax Burden
Low
Anchorage, AK Tax Overview
No state income or sales tax; residents receive Permanent Fund Dividend
Population
291,247
Median Income
$84,813
Cost of Living
127.5 (100 = avg)
State Income Tax
None
Median Home Price
$340,000
Anchorage Tax Calculator
Pre-filled with Anchorage median: $84,813
Total Tax Burden in Anchorage
$16,761
Take-Home: $68,052 · Effective Rate: 19.76%
Federal Tax
$10,273
12.11% eff.
AK State
$0
0.00% eff.
FICA
$6,488
7.65% eff.
Take-Home
$68,052
80.24% kept
Tax Breakdown
| Item | Annual | Monthly |
|---|---|---|
| Gross Income | $84,813.00 | $7,067.75 |
| Federal Income Tax | -$10,272.86 | -$856.07 |
| Alaska State Tax | $0.00 | $0.00 |
| Social Security (6.2%) | -$5,258.41 | -$438.20 |
| Medicare (1.45%) | -$1,229.79 | -$102.48 |
| Take-Home Pay | $68,051.95 | $5,671.00 |
Property Tax in Anchorage
Median Home
$340,000
Annual Tax
$3,638
Monthly Tax
$303
Effective Rate
1.07%
Sales Tax in Anchorage
No Sales Tax
Alaska does not impose a state or local sales tax.
Tax Burden Comparison
| Tax Type | Anchorage | Alaska Avg | National Avg |
|---|---|---|---|
| Income Tax | None | None | 4.6% |
| Property Tax | 1.07% | ~1.07% | 1.1% |
| Sales Tax | None | None | 7.12% |
| Overall Burden | Low | — | Moderate |
Tax Saving Tips for Anchorage Residents
- Alaska has no state income tax, meaning your income is only subject to federal taxes and FICA. Consider investing your tax savings into a Roth IRA for tax-free growth.
- Property tax in Anchorage (1.07%) is below the national average of 1.1%. This makes homeownership more affordable here relative to property tax burden.
- Anchorage has no sales tax, which can save thousands annually on everyday purchases and large-ticket items like electronics, furniture, and vehicles.
- Use a Health Savings Account (HSA) if eligible. Contributions are tax-deductible ($4,300 individual, $8,550 family), growth is tax-free, and withdrawals for medical expenses are tax-free.
Other Cities in Alaska
Calculate Your Full Alaska Tax Burden
See detailed state tax brackets, FICA breakdown, and compare to neighboring states.
Frequently Asked Questions
What are the tax rates in Anchorage, AK?
Anchorage, Alaska has no state income tax. The property tax rate is 1.07% and the combined sales tax rate is 0% (no sales tax). No state income or sales tax; residents receive Permanent Fund Dividend
How much is property tax in Anchorage?
The effective property tax rate in Anchorage is 1.07%. On the median home price of $340,000, this equals approximately $3,638 per year or $303 per month. This is below the national average of 1.1%.
What is the sales tax rate in Anchorage?
Anchorage has no sales tax. Alaska is one of the few states that does not impose a state or local sales tax.
How does Anchorage's tax burden compare to other cities?
Anchorage has a low overall tax burden. The effective total tax rate for a median-income household is approximately 24.8%. The absence of state income tax significantly reduces the overall burden. Cost of living index is 127.5 (100 = national average).
Are there any local taxes in Anchorage?
Anchorage does not impose a separate local or city income tax. Residents pay no state income tax, federal income tax, and FICA (Social Security and Medicare). No state income or sales tax; residents receive Permanent Fund Dividend