Taxes in Fairbanks, Alaska
Complete tax guide for Fairbanks, AK. No state income tax, 1.18% property tax, no sales tax. Calculate your total tax burden.
State Income Tax
None
Alaska
Property Tax
1.18%
Effective rate
Sales Tax
None
Combined rate
Tax Burden
Very Low
Fairbanks, AK Tax Overview
No state income or sales tax; very high heating costs
Population
32,325
Median Income
$65,216
Cost of Living
121.3 (100 = avg)
State Income Tax
None
Median Home Price
$250,000
Fairbanks Tax Calculator
Pre-filled with Fairbanks median: $65,216
Total Tax Burden in Fairbanks
$10,951
Take-Home: $54,265 · Effective Rate: 16.79%
Federal Tax
$5,962
9.14% eff.
AK State
$0
0.00% eff.
FICA
$4,989
7.65% eff.
Take-Home
$54,265
83.21% kept
Tax Breakdown
| Item | Annual | Monthly |
|---|---|---|
| Gross Income | $65,216.00 | $5,434.67 |
| Federal Income Tax | -$5,961.52 | -$496.79 |
| Alaska State Tax | $0.00 | $0.00 |
| Social Security (6.2%) | -$4,043.39 | -$336.95 |
| Medicare (1.45%) | -$945.63 | -$78.80 |
| Take-Home Pay | $54,265.46 | $4,522.12 |
Property Tax in Fairbanks
Median Home
$250,000
Annual Tax
$2,950
Monthly Tax
$246
Effective Rate
1.18%
Sales Tax in Fairbanks
No Sales Tax
Alaska does not impose a state or local sales tax.
Tax Burden Comparison
| Tax Type | Fairbanks | Alaska Avg | National Avg |
|---|---|---|---|
| Income Tax | None | None | 4.6% |
| Property Tax | 1.18% | ~1.18% | 1.1% |
| Sales Tax | None | None | 7.12% |
| Overall Burden | Very Low | — | Moderate |
Tax Saving Tips for Fairbanks 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 Fairbanks (1.18%) is above the national average. Check if you qualify for homestead exemptions or assessment appeals to reduce your property tax bill.
- Fairbanks 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 Fairbanks, AK?
Fairbanks, Alaska has no state income tax. The property tax rate is 1.18% and the combined sales tax rate is 0% (no sales tax). No state income or sales tax; very high heating costs
How much is property tax in Fairbanks?
The effective property tax rate in Fairbanks is 1.18%. On the median home price of $250,000, this equals approximately $2,950 per year or $246 per month. This is above the national average of 1.1%.
What is the sales tax rate in Fairbanks?
Fairbanks has no sales tax. Alaska is one of the few states that does not impose a state or local sales tax.
How does Fairbanks's tax burden compare to other cities?
Fairbanks has a very low overall tax burden. The effective total tax rate for a median-income household is approximately 23%. The absence of state income tax significantly reduces the overall burden. Cost of living index is 121.3 (100 = national average).
Are there any local taxes in Fairbanks?
Fairbanks 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; very high heating costs