If you’re researching sales tax in Anchorage Alaska, you’ve likely heard the headline: no state sales tax. While that’s true for Anchorage, sellers shipping to other parts of Alaska may still face complex compliance rules. From borough-level rates to the growing influence of the Alaska Remote Seller Sales Tax Commission (ARSSTC), understanding what is—and isn’t—taxed can make or break your compliance strategy.
Whether you’re a local merchant or a remote seller shipping into the state, staying compliant means going beyond assumptions. That’s where Hands Off Sales Tax (HOST) helps you simplify multistate filings and stay penalty-free.
What Makes Anchorage Tax-Free (and What Doesn’t)
Anchorage is often seen as a shopper’s haven because it charges no local sales tax—but that doesn’t mean the entire state of Alaska operates tax-free. Businesses must understand the nuance between Anchorage’s unique tax status and other jurisdictions across Alaska.
No Statewide Sales Tax
Alaska is one of five U.S. states without a statewide sales tax. That means there is no base-level sales tax applied to retail purchases anywhere in the state, including Anchorage and Fairbanks, both of which charge 0% local sales tax.
Local Sales Tax Exists Outside Anchorage
However, other boroughs and cities in Alaska do levy local sales taxes, which can range from 1% to 7.5% depending on the jurisdiction. For example:
- Juneau charges a 5% local sales tax.
- Wasilla and Kenai Peninsula Borough also enforce their own local tax rates.
Check individual city or borough websites for the most up-to-date rate tables.
Remote Sellers Must Still Comply
Even if you’re based in Anchorage—or out of state—you may still be required to collect tax if you sell to customers in ARSSTC member jurisdictions. The Alaska Remote Seller Sales Tax Commission (ARSSTC) enforces a uniform sales tax code across dozens of municipalities. If your business crosses the ARSSTC’s economic nexus threshold ($100,000 in sales or 200 transactions into member areas), you must register, collect, and remit accordingly.
For a full list of participating jurisdictions and their rates, visit the ARSSTC website.
Remote Seller Rules & ARSSTC Compliance
Even though Alaska has no statewide sales tax, remote sellers must be aware of their obligations under the Alaska Remote Seller Sales Tax Commission (ARSSTC)—a body that enforces uniform local tax compliance across many municipalities.
What Is ARSSTC?
The ARSSTC was established in 2019 and formally began enforcement in 2020. It was created to help Alaska’s cities and boroughs standardize and streamline sales tax collection from remote sellers and marketplace facilitators. Over 50 municipalities participate in the ARSSTC, including major locations like Juneau, Wasilla, and Kenai Peninsula Borough.
The ARSSTC enforces a Uniform Code that outlines seller responsibilities, filing procedures, and enforcement actions.
Economic Nexus Rules
As of 2024, the ARSSTC defines economic nexus as:
- $100,000 or more in gross sales into any combination of ARSSTC-member jurisdictions in the current or previous calendar year.
Starting January 1, 2025, the 200-transaction threshold will be eliminated, leaving gross sales volume as the sole criterion.
Once nexus is triggered, remote sellers must:
- Register with the ARSSTC.
- Collect local sales tax for each applicable municipality.
- File returns and remit collected taxes via the ARSSTC portal.
Marketplace Facilitator Obligations
If you sell exclusively through a registered marketplace facilitator (like Amazon or Etsy), the facilitator is responsible for collecting and remitting the tax—not the individual seller. However, you are still advised to keep proper records and verify facilitator compliance.
Step-by-Step Compliance Process
Selling into Alaska might seem tax-free at first glance, but many local jurisdictions do levy sales tax—even if Anchorage itself does not. If you’re a remote seller, here’s how to stay compliant under the ARSSTC framework.
1. Determine Whether Sales Tax Applies
Although Anchorage and most of the Anchorage Borough are tax-free, many other cities and boroughs do charge local sales tax, ranging from 1% to 7.5%. You must:
- Review whether your buyers are located in ARSSTC-participating municipalities.
- Use the official ARSSTC Member List to check which jurisdictions require tax collection.
2. Register with ARSSTC
If you exceed the $100,000 gross sales threshold into ARSSTC jurisdictions, you must:
- Register as a remote seller with the ARSSTC Remote Seller Portal.
- Provide business contact info, sales channels, and EIN/SSN details.
Registration is free and typically takes a few business days.
3. Use the Boundary & TTR Lookup Tool
To determine the correct sales tax rate and jurisdiction, use:
- The Boundary Database Lookup to input customer addresses.
- The TaxTools® TTR system, integrated into ARSSTC, which matches addresses to tax jurisdictions and rates.
These tools ensure correct tax calculation for each transaction.
4. Collect, File & Remit Monthly
Once registered:
- Collect local sales tax based on each buyer’s address.
- File monthly returns—even if no sales were made—via the ARSSTC Filing Portal.
- Remit taxes by the last day of the following month.
Failing to file or remit on time may result in penalties or loss of compliance status.
Rates, Jurisdiction Lookup & Filing Frequency
Alaska doesn’t have a statewide sales tax, but many municipalities impose their own local rates. For remote sellers, understanding how to calculate and file these local taxes accurately is critical.
Local Tax Rates Vary Widely
Depending on where your buyer is located, sales tax can range from:
- 2% to 5% in most participating municipalities
- Up to 7.5% in certain boroughs or cities (e.g., Wrangell or Bethel)
Anchorage, Fairbanks, and a few other jurisdictions remain tax-free, but you’re responsible for collecting tax only where required.
You can view current member rates on the ARSSTC Rate Sheet.
Use the Boundary & TTR Lookup Tool
To determine the correct tax rate by customer location:
- Access the official Boundary Database Tool
- Enter the buyer’s ZIP code or full address to find the applicable jurisdiction and tax rate
- TTR integration ensures up-to-date accuracy for compliance and remittance
Filing Frequency & Online Filing Only
Remote sellers must:
- File monthly returns, even if you have zero taxable sales
- Submit filings and remit taxes only via the online portal at arsstc.munirevs.com
- Ensure filing is completed by the last day of the month following the reporting period
Failing to file can lead to non-compliance, penalties, or administrative holds.
Exemptions, Use Tax & Documentation
Although Alaska lacks a statewide sales tax, local municipalities set their own rules on exemptions and use tax. Remote sellers must pay close attention to these local variations to stay compliant.
Local Exemptions Vary
Each municipality in Alaska that participates in the ARSSTC may define its own exemptions. Common examples include:
- Sales to government entities
- Nonprofit or charitable organizations
- Certain types of groceries or prescription drugs
You must refer directly to each municipality’s code via the ARSSTC Member Directory to confirm exemption eligibility.
Use Tax Obligations
When a business or consumer purchases a taxable good without sales tax (e.g., from a non-compliant seller) and brings it into a taxed jurisdiction, they are responsible for reporting and paying use tax at the local rate.
Documentation & Recordkeeping
Sellers must:
- Collect exemption certificates where applicable
- Maintain accurate sales and remittance records
- Be prepared to substantiate claims during audits
Common Pitfalls & Compliance Risks
Operating in Alaska’s unique sales tax environment requires precision. Many sellers assume the entire state is tax-free, but that’s far from the truth.
Mistaking Anchorage’s Tax-Free Status as Statewide
Anchorage and Fairbanks charge 0% sales tax, but many other Alaska municipalities do not. Juneau, for instance, has a 5% local tax. Sellers who assume “Alaska = no tax” risk non-compliance in taxed boroughs or cities.
Ignoring the Boundary Lookup Tool
Failing to verify whether a delivery address falls within a taxing jurisdiction is a frequent misstep. The ARSSTC boundary lookup tool is essential to determine jurisdiction-specific rates and filing requirements.
Late Registration After Crossing Economic Nexus
Remote sellers must register with the ARSSTC once they exceed $100,000 in gross sales into participating municipalities. Delaying registration after crossing this threshold can result in retroactive liability and penalties.
Misplaced Reliance on Marketplaces
While many marketplaces collect and remit tax, not all transactions are covered. Moreover, not all municipalities follow the ARSSTC Uniform Code. Sellers must still confirm whether each destination falls under ARSSTC jurisdiction and whether marketplace facilitator rules apply.
Hands Off Sales Tax (HOST): Your Sales Tax Compliance Partner
Whether you’re a remote seller shipping into taxed boroughs or a multi-state ecommerce brand, Hands Off Sales Tax (HOST) helps you stay ahead of Alaska’s unique tax landscape—without the stress.
One-Stop Compliance for Remote Sellers
HOST handles end-to-end registration with the Alaska Remote Seller Sales Tax Commission (ARSSTC), ensuring you’re listed correctly and on time. Our team monitors your economic nexus exposure, not just in Alaska, but across all U.S. states where local-level taxes add complexity.
Filing, Remittance & Monthly Returns—Done for You
We manage all your monthly filings through the ARSSTC portal, calculate accurate taxes using official jurisdiction tools, and ensure that exemptions, use tax obligations, and documentation protocols are handled with precision.
Marketplace & Multistate Expertise
Confused about what your marketplace covers—or doesn’t? HOST audits your facilitator data and confirms which jurisdictions you’re liable in. Our platform also supports sellers on Shopify, Amazon, and Stripe, integrating seamlessly with your sales stack.
Stay compliant, save time, and avoid penalties—HOST has your back in Alaska and beyond.
Alaska May Be Tax-Free—But Compliance Isn’t Optional
While Anchorage itself has no sales tax, selling into Alaska isn’t always hands-off. Remote sellers must stay alert to borough-specific rates, evolving ARSSTC regulations, and filing requirements that don’t stop at the state line. Missteps can lead to penalties—even when selling into “zero-tax” zones. That’s why it pays to have a partner like HOST who understands Alaska’s patchwork tax landscape. Whether you’re new to the region or expanding your ecommerce reach, HOST simplifies the entire compliance process. Get in touch today and make tax-free selling truly hassle-free.
Frequently Asked Questions (FAQs)
1. Is there really no sales tax in Anchorage, Alaska?
Yes, Anchorage does not charge a local sales tax, and Alaska has no statewide sales tax either. However, this doesn’t apply to all areas in Alaska—many other boroughs and cities do have local sales taxes.
2. Do remote sellers have to collect sales tax in Alaska?
Yes, if a remote seller exceeds $100,000 in annual gross sales into participating municipalities, they must register and collect local sales taxes under the ARSSTC (Alaska Remote Seller Sales Tax Commission) rules.
3. What is the ARSSTC and why does it matter?
The ARSSTC is a commission of Alaskan municipalities that adopted a uniform sales tax code for remote sellers. If you sell into these jurisdictions and meet the economic nexus threshold, you must collect and remit local sales tax—even without physical presence.
4. How can I know which Alaskan jurisdictions charge sales tax?
You can use the ARSSTC Boundary Database Lookup and TaxTools® (TTR) integration to check if a specific address falls within a taxing jurisdiction. This ensures accurate rate assignment and compliance.
5. What’s the filing frequency for ARSSTC returns?
Filing is monthly for most sellers, and all returns must be submitted electronically via the ARSSTC portal. Even if no sales occur in a period, zero returns are still required.
