Alaska does not have a statewide sales tax, but local sales and use tax is permitted and is in effect in multiple jurisdictions. State law gives municipalities and boroughs broad authority to enact sales tax ordinances and determine what is and is not taxable, and very few items are exempt under state law. Local sales and use taxes must be approved by popular vote.

A business has nexus in Alaska when it has a physical presence there, such as a retail store, warehouse, inventory, or the regular presence of traveling salespeople or representatives. Businesses with nexus may be required to charge, collect, and remit the appropriate tax on all sales to Alaskans residing in a location that charges local sales tax.

Alaska nexus for out-of-state sellers

Out-of-state sellers doing business in Alaska should contact local governments directly to determine sales and use tax obligations. It is possible for both municipal and borough taxes to apply to a single transaction, and sales and use tax returns should be filed with the municipality and/or borough.

See the Alaska Department of Commerce. A list of Alaska tax jurisdictions is available through the Office of the State Assessor.