Anchorage, AK Taxes 2025
Complete local tax guide and OBBBA calculator
On This Page
Anchorage Tax Overview 2025
No state income tax, no sales tax. One of the most tax-friendly cities.
Local Income Tax
0%
City/county rate
Sales Tax
0.00%
State + local
Property Tax
1.19%
Effective rate
Median Home
$350,000
Home value
No Local Income Tax!
Anchorage does not impose a local income tax on residents, which means you only pay state income tax (if applicable) and federal taxes.
State Tax Information
Anchorage is located in Alaska (0% state income tax)
💼 Anchorage Local Income Tax
Anchorage does not impose a local income tax on residents. Your income tax obligations are limited to state income tax (if applicable in Alaska) and federal income tax.
This is good news for Anchorage residents, as it means one less tax to worry about compared to cities that do impose local income taxes.
Total Income Tax Burden in Anchorage
🛒 Anchorage Sales Tax 2025
The combined sales tax rate in Anchorage is 0.00%. This includes both the Alaska sales tax and any local sales taxes.
Sales tax applies to most retail purchases in Anchorage. Some items like groceries, prescription medications, and clothing may be exempt or taxed at reduced rates depending on Alaska law.
Sales Tax Breakdown
Sales Tax Examples
| Purchase Amount | Sales Tax | Total |
|---|---|---|
| $50 | $0.00 | $50.00 |
| $100 | $0.00 | $100.00 |
| $500 | $0.00 | $500.00 |
| $1,000 | $0.00 | $1,000.00 |
🏠 Anchorage Property Tax 2025
The average effective property tax rate in Anchorage is 1.19%. Based on the median home value of $350,000, the typical homeowner pays approximately $4,165 per year in property taxes.
Property taxes fund local services including schools, police, fire departments, roads, and parks. Rates vary by specific location within Anchorage based on school district and other taxing authorities.
Estimated Annual Property Tax in Anchorage
| Home Value | Annual Tax | Monthly | SALT Deductible? |
|---|---|---|---|
| $200,000 | $2,380 | $198 | ✓ Yes |
| $300,000 | $3,570 | $298 | ✓ Yes |
| $400,000 | $4,760 | $397 | ✓ Yes |
| $500,000 | $5,950 | $496 | ✓ Yes |
| $750,000 | $8,925 | $744 | ✓ Yes |
| $1,000,000 | $11,900 | $992 | ✓ Yes |
💡 SALT Tip: Under the OBBBA, you can deduct up to $40,000 in state and local taxes (SALT) on your federal return. This includes property taxes, state income taxes, and local income taxes.
💰 Anchorage Cost of Living
Housing Costs
Tax Summary
OBBBA Tax Benefits for Anchorage Residents
Triple benefit: no income tax, no sales tax, plus OBBBA federal deductions.
The One Big Beautiful Bill Act (OBBBA), signed into law on July 4, 2025, introduced several federal tax deductions that can significantly reduce your tax burden as a Anchorage resident.
Available OBBBA Deductions:
Calculate Your Anchorage Tax Savings
Use our free OBBBA calculator to see exactly how much you could save on your 2025 federal taxes as a Anchorage resident.
Calculate My SavingsFrequently Asked Questions
What is the sales tax in Anchorage?
The combined sales tax rate in Anchorage is 0.00%. This includes both state and local sales taxes.
Does Anchorage have a local income tax?
Anchorage has a local income tax of 0%. This is in addition to any state and federal income taxes.
What is the property tax rate in Anchorage?
The average effective property tax rate in Anchorage is 1.19%. On a home worth $350,000, you'd pay approximately $4,165 per year.
How do OBBBA deductions benefit Anchorage residents?
Triple benefit: no income tax, no sales tax, plus OBBBA federal deductions. You can use our free calculator to estimate your total savings from tips, overtime, auto loan interest, SALT, and senior bonus deductions.