State of Alaska Sales Tax The 2016 Alaska State Sales Tax

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What is the 2016 Alaska Sales Tax Rate?

Alaska Sales Tax Rate

0.00%

2016 Alaska state sales tax
Exact tax amount may vary for different items

The Alaska state sales tax rate is 0%, and the average AK sales tax after local surtaxes is 1.76%.

While there is no state sales tax in Alaska, boroughs and municipalities are allowed to collect local sales taxes within their jurisdictions. While Anchorage and Fairbanks (the two largest cities in Alaska) do not charge sales tax, Juneau, for example, charges a local sales tax rate of 5%. As of 2009, 108 Alaskan localities collected a local sales tax.

If you are a Alaska business owner, you can learn more about how to collect and file your Alaska sales tax return at the 2016 Alaska Sales Tax Handbook .

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Alaska Sales Tax Exemptions

Alaska does not exempt any types of purchase from the state sales tax. In most states, necessities such as groceries, clothes, and drugs are exempted from the sales tax or charged at a lower sales tax rate.

Some items may not be eligible for these reduced sales tax rates, such as expensive clothing, unhealthy food or drinks like soda, and certain non-essential pharmaceuticals. Other items including gasoline, alcohol, and cigarettes are subject to various Alaska excise taxes in addition to the sales tax.

In some states, items like alcohol and prepared food (including restaurant meals and some premade supermarket items) are charged at a higher sales tax rate. The AK sales tax applicable to the sale of cars, boats, and real estate sales may also vary by jurisdiction. Alaska's sales tax rates for commonly exempted items are as follows:

Groceries: 0% Clothing: 0% Prepared Food: 0% Prescription Drugs: 0% Non-Prescription Drugs: 0%
Alaska sales tax for a restaurant meal
$100 Restaurant Dinner
Alaska sales tax for groceries
$100 of groceries
Alaska sales tax for clothing
$100 in clothes
Alaska sales tax for general consumer products
$100 of consumer products
$0.00 sales tax
$100.00 total
$0.00 sales tax
$100.00 total
$0.00 sales tax
$100.00 total
$0.00 sales tax
$100.00 total

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Alaska Sales Tax Exemption Certificate

Unlike a Value Added Tax (VAT), the Alaska sales tax only applies to end consumers of the product. Individuals and companies who are purchasing goods for resale, improvement, or as raw materials can use a Alaska Sales Tax Exemption Form to buy these goods tax-free.

Companies or individuals who wish to make a qualifying purchase tax-free must have a Alaska state sales tax exemption certificate, which can be obtained from the Alaska Department of Revenue . On making an exempt purchase, Exemption Certificate holders may submit a completed Alaska Sales Tax Exemption Form to the vendor instead of paying sales tax.

Sales tax exemption forms (as well as business sales tax id applications, sales tax returns, and the full Alaska sales tax code) can be downloaded from the Alaska Department of Revenue here .

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Alaska Sales Tax Calculator

 Sales Tax Calculator
Purchase Details:
$ in zip code Enter the zip code where the purchase was made for local sales tax

Whenever you make a purchase at a licensed Alaska retailer, your sales tax will be automatically calculated and added to your bill. To lookup the sales tax due on any purchase, use our Alaska sales tax calculator.

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Alaska Use Tax [View Main Article]

If you buy goods and are not charged the Alaska Sales Tax by the retailer, such as with online and out-of-state purchases, you are supposed to pay the 0% sales tax (less any foreign sales tax paid) for these items yourself as the Alaska Use Tax.

Your are expected to voluntarily list your liable purchases on a Alaska Use Tax Return, which should be attached with payment to your Alaska Income Tax Return. Historically, compliance rates with with the Alaska Use Tax have been low.

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Alaska Local Sales Taxes

Alaska allows counties and cities to collect a maximum local sales tax of 7.00% on all non-exempt purchases within their jurisdiction. The local sales tax is collected in addition to the Alaska sales tax of 0%, so the actual sales tax you pay on purchases in Alaska may vary between 0% and 7.000% depending on which county or city the sale is made in.

You can find local sales tax rates on our list of Alaska local sales taxes by county, city, and zip code, or you can lookup your local sales tax rates with our free Alaska sales tax lookup tool. If you need to download Alaska local sales tax rates, visit the Alaska sales tax database download page.


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