Alaska State Tax
Alaska tax rate
Alaska is well known to be one of the states that have the least burdensome state taxes in the US. From being one of the states with the highest tax rates, the petroleum industry boost brought about by the completion of the Trans-Alaska pipeline.
There have been no income tax and state sales tax levied to Alaskans since 1990. Instead, citizens even receive an annual cash payment from the Alaska Permanent Fund Corporation. Local government projects are supported and funded mainly through petroleum and federal revenues.
While Alaska does not collect income tax and state tax, its municipalities charge local taxes such as vehicle rental tax, raw fish tax, hotel bed tax, tire tax, and severance tax. Because of the absence of state and income tax, Alaska collects higher rates from other sources like liquor and tobacco taxes. In general, however, municipalities collect local sales tax at between 2-5% rates. The state also imposes vehicle rental taxes and a $46 excise tax for tourists travelling via vessels with overnight accommodations.
Alaska is the largest state in the US. However, only a small part of its land is subject to property tax. Eleven cities and 14 out of 18 boroughs in the State of Alaska charge property taxes. The Alaska tax code helps ease tax burdens after retirement. Senior citizens and veterans are exempted from paying property tax for the first $150,000 of their assets. Inheritance is not subject to state estate tax anymore, except for deaths which occurred before January 2005.