Business Information & Rankings
- Alaska ranks 1st for the Most Tax-Friendly State for Residents.(Tax Foundation, 2005)
- Alaska ranks 3rd in Tax Foundation’s State Business Tax Climate Index. (2004)
- Anchorage ranked 15th in “Best Workforce Education Levels – Top 25” category. (Business Facilities, 2005)
- Alaska has the lowest overall per capita tax rate of any State due to the oil royalties generated over the last 20 years. These royalties fund much of the State government operations.
Cost of Living Index
|For Fairbanks, AL(2004):||Index Score|
|Misc. Goods & Services:||122.6|
Alaska’s Permanent Fund helps offset the cost of living. In 2004, each man, woman and child living in Alaska for at least one year received a dividend check from the state government for $919.84.
Alaska is ranked 31st in the nation in terms of crime. (FBI, 2003)
Fees & Taxes
Business Inventory Tax
Alaska has a business inventory tax; however, some municipalities may exempt business inventories.
Business Licenses Fee
Unless specifically exempted by statute, every business must obtain a business license at a biannual fee of $50.
Corporate Income Tax
Alaska uses a graduated percentage of taxable income ranging from 1% for net income below $10,000 to 9.4% for net income over $90,000. Alternative minimum tax rate on capital gains is 4.5%.
Personal Income Tax
Personal Property Tax
Alaska is the only state where a large part of its land mass is not subject to a property tax. While property tax is the primary method of raising revenues for many of the larger municipalities in the state, smaller municipalities favor a sales tax.
State Sales and Use Tax
Base Rate: None
Machinery Rate: None
There is no statewide sales tax levied. The typical sales tax rates for some municipalities are from 3%-5%.
Alaska charges new employers the average industry tax rate for 1 year.