Alaska: Income Tax | Sales Tax | Property Tax | Corporate Tax | Alaska Excise Taxes

Alaska State Excise Taxes 2016 - Fuel, Cigarette, and Alcohol Taxes

Gasoline:
8.00¢ per gallon
Cigarettes:
$2.00 per pack
Liquor:
$12.80 per gal
Wine:
$2.50 per gal
Beer:
$1.07 per gal

What is an Excise Tax?

An excise tax is a tax directly levied on certain goods by a state or federal government. The most prominent excise taxes collected by the Alaska state government are the fuel tax on gasoline and the so-called "sin tax" collected on cigarettes and alcoholic beverages.


An excise tax is not the same thing as the Alaska Sales Tax.

The Alaska Sales Tax is collected as a percentage of the final purchase price of all qualifying sales, and is collected directly from the end consumer of the product.

Alaska's excise taxes, on the other hand, are flat per-unit taxes that must be paid directly to the Alaska government by the merchant before the goods can be sold. Merchants may be required to attach tax stamps to taxable merchandise to show that the excise tax was paid.

Even though excise taxes are collected from businesses, virtually all Alaska merchants pass on the excise tax to the customer through higher prices for the taxed goods.


Alaska per capita excise tax

Alaska collects an average of $474 in yearly excise taxes per capita, higher then 54% of the other 50 states.

Alaska General Excise Taxes - Gasoline, Cigarettes, and More

Alaska collects general excise taxes on the sale of motor fuel (gasoline and diesel), cigarettes (per pack), and cell phone service plans. Other general taxes, similar to excise taxes, may be collected on other items including vehicle sales, transportation tickets, gas guzzlers, tanning salons, firearms, and more.

Gas sales tax in Alaska - Alaska oil and gasoline excise taxes

Alaska Gas Tax

50th highest gas tax

The Alaska excise tax on gasoline is 8.00¢ per gallon, one of the lowest gas taxes in the country. Alaska's excise tax on gasoline is ranked #50 out of the 50 states. The Alaska gas tax is included in the pump price at all gas stations in Alaska.

Tax on buying cigarettes in Alaska - Alaska cigarette excise taxes

Alaska Cigarette Tax

11th highest cigarette tax

The Alaska excise tax on cigarettes is $2.00 per 20 cigarettes, higher then 78% of the other 50 states. Alaska's excise tax on cigarettes is ranked #11 out of the 50 states. The Alaska cigarette tax of $2.00 is applied to every 20 cigarettes sold (the size of an average pack of cigarettes). If a pack contains more then 20 cigarettes, a higher excise tax will be collected.

Tax on phone service in Alaska - Alaska phone taxes

Alaska Cellphone Tax

42nd highest cellphone tax

The average tax collected on cell phone plans in Alaska is $6.69 per phone service plan, one of the lowest cellphone taxes in the country. Alaska's average cellphone tax is ranked #42 out of the 50 states. The Alaska cellphone tax is already included in the service plan price you pay to your service provider, and may be listed as "Misc. taxes and Fees" or "Other" on your monthly bill.

Automobile / Vehicle Tax In Alaska - Alaska car road tax

Alaska Car Tax

Alaska collects a registration fee and a title fee on the sale or transfer of cars and motorcycles, which are essentially renamed excise taxes. Unlike standard excise taxes, however, the end consumer must pay the tax directly to the Alaska Department of Transportation and receive documentation (registration and title papers) proving the fees were paid.

Alaska Alcohol Excise Taxes - Liquor, Wine, and Beer

Alaska collects special excise taxes on the sale of all types of alcohol, subdivided into specific taxes on wine, beer, and liquor (hard alcohol other then wine and beer). Alcohol taxes are sometimes collectively referred to as "sin taxes", which also include excise taxes on cigarettes, gambling, drugs, and certain other items.

Please note that the IRS also collects a federal excise taxes on alcoholic beverages, which are included separately from Alaska's alcohol taxes in the final purchase price.

Tax on beer in Alaska - Alaska beer excise taxes

Alaska Beer Tax

2nd highest beer tax

The Alaska excise tax on beer is $1.07 per gallon, one of the highest beer taxes in the country. Alaska's beer excise tax is ranked #2 out of the 50 states. The Alaska beer tax is already added to the purchase price of all beer bought in Alaska, whether in kegs, bottles, or cans.

Tax on buying wine in Alaska - Alaska wine excise taxes

Alaska Wine Tax

2nd highest wine tax

The Alaska excise tax on Wine is $2.50 per gallon, one of the highest wine taxes in the country. Alaska's excise tax on wine is ranked #2 out of the 50 states. Current excise tax rates for wine, and other alcoholic beverages, were last changed in 2002 and can be found here: http://www.tax.alaska.gov/programs/documentviewer/viewer.aspx?2 The Alaska wine tax is already added to the purchase price of all wine bought in Alaska.

Tax on buying liquor in Alaska - Alaska Liquor & Spirits excise taxes

Alaska Liquor Tax

5th highest liquor tax

The Alaska excise tax on liquor is $12.80 per gallon, one of the highest liquor taxes in the country. Alaska's excise tax on Spirits is ranked #5 out of the 50 states. Alaska state taxes on hard alcohol vary based on alcohol content, place of production, size of container, and place purchased. The Alaska liquor tax applies to all hard alcohol (alchoholic beverages other then beer and wine), and is already included in the purchase price by the retailer.

Alaska Excise Tax Deductions & Refunds

Can I deduct my Alaska Excise taxes?

Unlike the Alaska Sales Tax, excise taxes are not generally deductible on Alaska income tax returns or on your federal tax return. However, the IRS occasionally allows certain excise taxes to be deducted for certain tax years.

Vehicle Tax Deduction
Alaska sales and excise taxes on cars or vehicles bought during 2009 may be deducted once from your federal tax return. You cannot deduct excise taxes for vehicles bought during other years.
Phone Tax Deduction
You may deduct excise taxes paid on long-distance phone calls between the years of 2003 and 2006 from your federal tax return.


Can I get a Alaska Excise Tax Refund?

While sales tax refunds are available for goods that are purchased in Alaska and exported, Alaska excise taxes paid on goods are generally non-refundable. Incentives may exist allowing certain state of federal excise taxes to be refunded on goods bought for specific uses, but such incentives change frequently.

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Alaska Excise Tax - References