Essential Guide to Navigating Sales Tax in Alaska

Key Takeaways

• Alaska has no statewide sales tax; local jurisdictions (cities and boroughs) impose local sales and use taxes.
• As of January 1, 2025, the Alaska Remote Seller Sales Tax Commission (ARSSTC) repealed the 200-transaction nexus threshold. The $100,000 gross sales threshold still applies in jurisdictions that impose sales tax.
• Local sales tax rates vary widely (0% to 7%) depending on the municipality.
• Several jurisdictions have changed rates or tax structure in 2025.
• Remote sellers register for sales tax with the ARSSTC.

Do You Need To Collect and Remit Sales Tax in Alaska? 

Alaska’s sales tax structure is unusual. While the state itself does not impose sales tax, numerous local governments (cities and boroughs) levy their own general local sales and use taxes.

Since each local municipality has individual sales tax ordinances, this can create a lot of confusion for local and online retailers. However, some consistencies exist.

Local sellers

If you own a business in an Alaska city or borough that imposes a sales tax, you are expected to register and report all sales directly to that jurisdiction.

Remote sellers

For vendors outside of the state, or those without a physical location in Alaska, sales tax must be collected and sent to the relevant locations if they exceed specific economic thresholds (explained further in the next section). Luckily, the Alaska Remote Seller Sales Tax Commission (ARSSTC) has established a uniform code for all local jurisdictions taxing remote sellers, making compliance a little easier. 

Do You Have Sales Tax Nexus in Alaska? 

In Alaska, nexus works at two levels: 

Physical sales tax nexus in Alaska 

Physical nexus is municipality-specific, meaning it is established through a specific city or borough’s laws rather than at the state level. If your business operates in a taxing jurisdiction, (e.g. you have an office, warehouse, retail store, or inventory there), you must register and report with that jurisdiction.

For in-state sellers who also make remote sales to other parts of Alaska, they must separate their sales by source (local versus remote), and see if they trigger economic nexus thresholds in other Alaskan areas.

Economic sales tax nexus in Alaska 

Economic nexus applies to vendors who have no physical presence in Alaska yet engage in remote sales within the state.  

To simplify compliance, Alaska has set up uniform nexus laws that must be observed by every taxing jurisdiction: 

1. Accumulated gross sales to Alaska equaling or surpassing $100,000 within the previous calendar year, or 

2. Over 200 separate transactions sourced to Alaska in the previous calendar year.  Alaska repealed the 200-transaction threshold as of January 1, 2025.

All gross sales routed to Alaska count toward the $100,000 economic nexus test, including sales made through a marketplace facilitator.

Are Marketplace Facilitators Required to Collect and Remit Sales Tax in Alaska? 

Yes. Marketplace facilitators (e.g., Amazon, eBay, Etsy) are responsible for collecting and remitting sales tax if they meet the economic nexus threshold. However, marketplace sellers still have some responsibilities in conjunction with their marketplace sales.

Responsibilities of Marketplace Facilitators 

Marketplace facilitators adhere to the same economic threshold as any remote seller (i.e. $100,000 in the current or previous calendar year). This includes sales from all sellers on their platform. 

Responsibilities of Marketplace Sellers 

Marketplace sellers who only sell via a facilitator don’t need to separately register for sales tax, but they should complete a Marketplace Seller Affidavit acknowledging their lack of tax obligations.

What platforms are marketplace facilitators? 

• Amazon    
• eBay    
• Etsy    
• Walmart (online)

Not sure what defines a marketplace facilitator? In short, marketplace facilitators are companies that provide a platform or service for third-party sellers (you) to sell their products or services to customers. The facilitator collects payment from the customer, processes the transaction, and may also handle shipping and returns.

Filing Alaska Sales Tax 

Initial Registration 

• For in-state retailers, register directly with the municipality you do business in.
• Remote sellers use the Alaska Remote Seller Sales Tax Commission (ARSSTC) portal to register for all taxing jurisdictions.

Sales Tax Collection 

Collect sales tax based on the delivery location (i.e., where the buyer receives the product or service).

• Alaska-based sellers with customers who visit their location will apply sales tax pertinent to their municipality’s rate.
• Remote sellers or those who make deliveries should apply sales tax based on the delivery location. 

Filing Returns 

The method of Alaskan sales tax returns depends on if you are register as an in-state or remote seller.

• In-state businesses registered with their municipality and must refer to that jurisdiction’s filing regulations.
• Remote sellers use the Alaska Remote Seller Sales Tax Commission (ARSSTC) portal to file sales tax returns electronically. 

When are sales tax returns due in Alaska? 

Sales tax filing frequencies and due dates in Alaska are not standardized at the state level, but determined by local jurisdictions. 

When a business registers with a particular municipality, that municipality supplies the timeline for tax filing and the corresponding due dates. This schedule will guide your regular tax filing processes. 

Remote sellers default to a monthly filing schedule, although the option for quarterly filing is available upon approval from the Commission. The due date for monthly and quarterly is always the last day of the month following a reporting period.  

Top Tip: you must file a sales tax return even if you have had no sales during the reporting period.  

Recent Local Sales Tax Rates & Changes (2024-2025)

Local sales tax rates across Alaska vary from 0% up to approximately 7.5%, depending on the city or borough. Early in Alaska’s sales tax history, limits were placed on how much sales tax a city or borough could charge, but those limits were removed. As such, there have been recent increases in sales tax rates in these Alaskan municipalities:

• Matanuska-Susitna Borough (MSB): raised to 3% in 2025, affecting cities within that borough.
• Sitka: increased from 5% to 6% in 2025.
• Chignik: increased to 2%.
• Pelican: raised from 4% to 6%.
• City of Craig: adopted an interesting seasonal rate change, effective January 1, 2025:
  • From Jan 1-Mar 31, 2025: the rate was 6%.
  • From April 1-Sep 30, 2025: the rate increased to 7%.
  • From Oct 1, 2025-Mar 31, 2026: the rate decreases back to 6%.

As you can see, rates change often and even come with unique rules. That’s why it’s so important to have a tax professional in your corner. If you have sales tax obligations in Alaska or any other U.S. state, sign up with SalesTaxSolutions.US for simple month-to-month pricing. No hidden fees, no locked in contracts!