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 |
About Taxes in Anchorage
Anchorage has a population of approximately 291,247 residents with a median household income of $84,813. The cost of living index is 127.5 (27.5% higher than the national average of 100).
Local context: No state income or sales tax; residents receive Permanent Fund Dividend
Tax burden classification: Low. Effective combined tax rate of 24.8% includes federal, state, FICA, property, and sales taxes for a typical Anchorage household.
Official Tax Resources for Alaska
For authoritative Alaska tax forms, filing deadlines, and the latest legislative updates, consult these official government resources:
- Alaska Department of Revenue — official state revenue agency
- Alaska Individual Income Tax Forms — current tax year forms and instructions
- IRS Federal Tax Forms and Instructions — federal income tax filing
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 ($4,400 individual, $8,750 family), growth is tax-free, and withdrawals for medical expenses are tax-free.
Other Cities in Alaska
Sources & Methodology
Tax rate data on this page is compiled from official government sources and updated for the 2026 tax year. Calculations follow the IRS-published 2026 federal tax brackets, FICA rates (6.2% Social Security up to $176,100 wage base, 1.45% Medicare), and Alaska state tax provisions. Property tax estimates use Anchorage's median home value of $340,000and the local effective property tax rate of 1.07%.
- • Federal tax brackets and standard deductions: IRS.gov
- • State income tax rates and brackets: Alaska Department of Revenue
- • Median household income, home value, and demographics: U.S. Census Bureau ACS
- • Cost of living comparisons: U.S. Bureau of Labor Statistics CES
- • National average benchmarks: Tax Foundation state-level tax burden studies
Disclaimer: Estimates are for informational purposes only. Actual tax liability depends on filing status, deductions, credits, and individual circumstances. Consult a licensed tax professional or your state revenue agency for binding tax guidance.
Reviewed by LevyIO Tax Research Team · Published 2026-01-15 · Last updated 2026-04-30
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