Research Areas
Alaska
The Facts on Alaska’s Tax Climate
Here are some basic facts on Alaska’s tax system and how it compares to other states:
Tax Freedom Day Arrives on March 29 in Alaska, Earliest in Nation
Tax Freedom Day is the day when Americans finally have earned enough money to pay off their total tax bill for the year. In 2008, Alaska taxpayers had to work until March 29 (50th nationally) to pay their total tax bill, 25 days before national Tax Freedom Day (April 23). The Tax Freedom Days of neighboring states were: Hawaii, April 26 (ranked 10th nationally); Oregon, April 16 (ranked 32nd highest nationally); Washington, April 29 (ranked 5th highest nationally); and California, April 30 (ranked 4th highest nationally).
Tax Freedom Day has been projected using the most up-to-date economic and budget projections from official government agencies. However, Tax Foundation estimates of average state and local tax rates for 2008 will not be released until later this spring as we await more up-to-date data from various government agencies.
Full study of Tax Freedom Day, nationwide and in each state
Alaska's State/Local Tax Burden Lowest in the Nation in 2007
During the past two decades, Alaska’s state and local tax burden has been consistently ranked as one of the nation’s lowest. Over this period of time, the burden has continued to fall as the individual incomes of taxpayers have risen faster than state-local tax collections. Estimated now at 6.6% of income, Alaska’s state-local tax burden percentage remains firmly entrenched as the lowest nationally, well below the national average of 11.0%. Alaskans pay $2,729 per capita in state and local taxes, and per capita state income is $41,469.
Alaska's State-Local Tax Burden, 1970-present
Alaska’s 2008 Business Tax Climate Ranks 4th
Alaska ranks 4th in the Tax Foundation's State Business Tax Climate Index. The Index compares the states in five areas of taxation that impact business: corporate taxes; individual income taxes; sales taxes; unemployment insurance taxes; and taxes on property, including residential and commercial property. The ranks of the nearest states were as follows: Hawaii (22nd), Oregon (10th), Washington (11th) and California (47th).
50-State Comparison of Business Tax Climates (data only)
2008 State Business Tax Climate Index, Fifth Edition (full study)
Alaska’s Individual Income Tax System
Alaska levies no individual income taxes, joining six other states with the same policy: Wyoming, Washington, Nevada, Florida, Texas and South Dakota.
50-State Table of Individual Income Tax Rates
50-State Table of State Individual Income Tax Collections
50-State Table of State and Local Individual Income Tax Collections Per Capita
Alaska’s Corporate Income Tax System
Alaska's corporate tax structure consists of ten separate brackets with a top rate of 9.4% kicking in at an income level of $90,000-the 5th highest rate in the nation. In 2006, Alaska's state-level corporate tax collections (excluding local taxes) reached $1,226.27 per capita, which ranked highest in the nation.
50-State Table of Corporate Income Tax Rates, 2000-2008
50-State Table of State and Local Corporate Income Tax Collections Per Capita and Per Household, 2005
50-State Table of State Corporate Income Tax Collections Per Capita, 2006
Alaska Levies No Statewide General Sales Tax; Gasoline Tax Second Lowest in the Nation
Alaska levies no general sales or use tax on consumers, joining Delaware, New Hampshire, Montana and Oregon as the only other states with no sales tax. However, Alaska does collect $598 per capita in general sales taxes at the local level. Alaska's gasoline tax stands at 8.0 cents per gallon (lowest nationally), while its cigarette tax stands at $2.00 per pack of twenty (4th highest nationally). The gasoline tax was adopted in 1946 and the cigarette tax in 1949.
50-State Table of Sales and Excise Tax Rates
50-State Table of State and Local General Sales and Gross Receipts Tax Collections Per Household and Per Capita, Fiscal Year 2005
Alaska Property Taxes: Comparatively High
Alaska is one of the 37 states that collect property taxes at both the state and local levels. As in most states, local governments collect far more. Alaska's localities collected $811,688,000 in property taxes in fiscal year 2004, the latest year for which the Census Bureau has published state-by-state data. At the state level, Alaska collected $47,368,000 in property taxes during FY 2004, making its combined state/local property taxes $859,056,000. That brings its per capita collection to $1,306(ranked 12th nationally).
State property tax collections per capita by state
Federal Tax Burdens and Expenditures: Alaska is a Beneficiary State
Alaska taxpayers receive more federal funding per dollar of federal taxes paid compared to the average state. Per dollar of Federal tax collected in 2005, Alaska citizens received approximately $1.84 in the way of federal spending. This ranks the state 3rd highest nationally and represents a large rise from 1995 when Alaska received $1.21 per dollar of taxes in federal spending (then ranked at 17th highest nationally). The nearest states and the amount of federal spending they received per dollar of federal taxes paid were: Hawaii ($1.44), Oregon ($0.93), Washington ($0.88) and California ($0.78).
Comparing the amount of federal taxes sent to Washington with the amount of federal spending coming back to the state
Articles from the Tax Foundation
- States Should Avoid Sales Taxes on Nonprofit Hospital Purchases, by Joseph Henchman, April 11, 2008
- Tax Freedom Day by State, 1970-2008, March 26, 2008
- Tax Freedom Day by State, 2008, March 26, 2008
- America Celebrates Tax Freedom Day, by Gerald Prante and Scott A. Hodge, March 26, 2008
- National and State Corporate Income Tax Rates, U.S. and OECD Countries, 2007 , March 25, 2008
- State Corporate Income Tax Rates, 2000-2008, March 22, 2008
- State Sales, Gasoline, Cigarette, and Alcohol Tax Rates by State, 2000-2008, March 7, 2008
- State and Local Property Tax Collections Per Household and Per Capita by State, Fiscal Year 2005, February 6, 2008
- State and Local General Sales and Gross Receipts Tax Collections Per Household and Per Capita, Fiscal Year 2005, February 5, 2008
- State and Local Corporate Income Tax Collections Per Household and Per Capita, Fiscal Year 2005, February 5, 2008
- State Selective Sales Tax Collections Per Household, 2006, February 5, 2008
- State and Local General Sales Tax Collections Per Household, Fiscal Year 2005, February 5, 2008
- Local Property Tax Collections Per Household, Fiscal Year 2005, February 5, 2008
- State Individual Income Tax Rates, 2000-2008, February 3, 2008
- State Business Tax Climate Index Rankings, 2003-2008 , October 10, 2007
- 2008 State Business Tax Climate Index (Fifth Edition), by Chris Atkins and Curtis S. Dubay, October 10, 2007
- Federal Spending Received Per Dollar of Taxes Paid by State, 2005, October 9, 2007
- New Census Data Shows Where Property Taxes Hit Homeowners Hardest, by Gerald Prante, September 12, 2007
- Property Taxes on Owner Occupied Housing by State, 2006, September 12, 2007
- Property Taxes on Owner Occupied Housing by County, 2006, September 12, 2007
- State Lottery Sales Per Household, Fiscal Year 2006 , August 1, 2007
- Lottery Revenue as a Percentage of Own-Source Revenue by State, Fiscal Year 2005 , August 1, 2007
- Implicit Tax Rates on State Lottery Sales by State, Fiscal Year 2006 , August 1, 2007
- Itemization Rates by State, 2005, July 24, 2007
- Most Americans Don’t Itemize on Their Tax Returns, by Gerald Prante, July 23, 2007
- General Sales and Gross Receipts Tax Collections by State, Fiscal Year 2006, June 28, 2007
- State and Local Spending Per Capita, 2005, June 28, 2007
- State and Local Debt Per Capita, 2005, June 28, 2007
- State and Local Revenues Per Capita, 2005, June 22, 2007
- Local Government General Revenue by Source, 2005, June 18, 2007
- State and Local Individual Income Tax Collections Per Capita, 2005, June 18, 2007
- State Individual Income Tax Collections, 2006, June 18, 2007
- State Property Tax Collections by State, 2005-2006, June 18, 2007
- Toll Revenue vs. Motor Fuel Taxes by State, 2005, June 11, 2007
- State Government General Revenue by Source, 2005, June 7, 2007
- State Motor Fuel Tax Collections by State, 2006, June 7, 2007
- State Estate and Gift Tax Collections, by State and Per Capita, 2006, June 5, 2007
- State Corporate Income Tax Collections, 2006, June 4, 2007
- Change in Per Capita State and Local Property Taxes from 2000 to 2005, May 15, 2007
- State-Local Tax Burden Methodology, by Curtis S. Dubay, April 16, 2007
- State and Local Tax Burdens Hit 25-Year High, by Curtis S. Dubay, April 4, 2007
- Alaska's State and Local Tax Burden, 1970-2007, April 4, 2007
- State and Local Tax Burdens by State, 1970-2007, April 4, 2007
- State and Local Tax Burdens Compared to Other U.S. States, 1970-2007, April 4, 2007
- Links to Other Tax Policy Resources, January 1, 1937