Overview
Alaska is one of only five U.S. states without a statewide sales tax. However, this doesn't mean businesses are entirely exempt. Instead, individual cities and boroughs have the authority to impose their own sales and use taxes.
Each community sets its own tax rate, filing rules, and due dates—making Alaska’s system more local and varied compared to other states.
How It Works
Here’s what makes Alaska’s tax structure distinct:
No state-level sales tax
The State of Alaska does nott collect sales tax or manage sales tax permits.
Businesses selling across the state may owe local sales tax in specific communities, but there isn't a single "Alaska sales tax return."
Local governments handle their own taxes
Cities and boroughs that adopt sales tax ordinances are responsible for collecting and enforcing their own taxes.
This means rates, exemptions, and filing requirements can vary significantly by location.
Shared System for Remote Sellers
To simplify compliance for online sellers, many Alaska municipalities have joined a cooperative program called the Alaska Remote Seller Sales Tax Commission (ARSSTC).
This allows remote sellers to file a single return through one central portal, covering multiple cities and boroughs.
The Three Main Filing Paths
Depending on where and how you sell in Alaska, you’ll use one of these three filing methods:
Filing Type | Who Uses It | Portal | Description |
ARSSTC (Alaska Remote Seller Sales Tax Commission) | Remote sellers shipping to multiple Alaska cities | One registration and return covers all participating cities and boroughs. | |
AMSTP (Alaska Municipal Sales Tax Program) | Businesses with local physical presence in cities using the Alaska Municipal League’s program | Centralized system for certain cities that delegate tax administration to the Alaska Municipal League. | |
Direct Municipal Filing | Businesses operating in non-member cities or boroughs | Varies by city | Some municipalities still require direct filing on their own websites or by paper form. Check DCRA’s list of Alaska sales tax jurisdictions. |
Example
Let’s say your business sells handmade goods online to customers in Alaska:
You don’t need a state sales tax permit — because there’s no state sales tax.
You do need to register and file with ARSSTC if your total Alaska sales exceed $100,000 in a calendar year.
You’ll file a single monthly return through ARSSTC that automatically distributes the correct local tax to each city or borough where you sold.
If you also have a storefront in a city that doesn’t participate in ARSSTC, you’ll file directly with that local government instead.
Why Alaska Does It This Way
Alaska’s constitution gives cities and boroughs the power to levy their own sales taxes.
Local control allows communities to fund essential services like roads, utilities, and public safety based on local needs.
Because there’s no statewide system, organizations like the ARSSTC and Alaska Municipal League (AMSTP)help coordinate compliance for sellers and remote businesses.
Helpful Resources
AMSTP Portal – Municipal Program
Summary
Alaska’s sales tax system is local, not statewide.
Each city or borough decides whether to charge sales tax — and if they do, businesses must register and file with that jurisdiction or through a shared system like ARSSTC or AMSTP.
For sellers used to a single “state filing,” Alaska may feel a little different at first, but once you understand which cities you’re connected to, filing becomes straightforward.