Alaska Property Tax
Alaska's property taxes are administered at the local level, with boroughs (the equivalent of counties) and cities assessing and imposing rates on home values. As a result, the state relies more on property taxes than other forms of taxation such as income and sales taxes.
Alaska Property Tax rate is 1.17%, which sits slightly above the national average of 0.99%. However, it’s important to remember that the state is very taxpayer-friendly overall. There is no statewide income tax, and full-time residents receive an annual dividend payment from the Permanent Fund. Property taxes in Alaska are a key component of the state’s financial infrastructure, providing vital support for essential local government services and educational institutions. As such, it’s important for real estate investors and homeowners to understand the process, including assessment rates, due dates, exemptions, and other factors that can impact a property’s tax liability.
Alaska Property Tax differs considerably across the state’s boroughs. For instance, property tax rates in Anchorage Municipality are significantly higher than those in the Kenai Peninsula Borough, reflecting differences in population and local governmental responsibilities. In addition, the state’s absence of income taxes and annual Permanent Fund dividends contribute to Alaska’s relatively taxpayer-friendly environment compared to other states.
Personal property is taxed based on its situs, which is determined by the primary physical location where the property is located or normally kept. To determine situs, a person or business must file a personal property statement with the assessor’s office by April 1. Failure to do so can result in a late penalty. Property taxes are collected for both real and personal property — though personal property is taxed at a lower rate than real property.
Alaska Property Tax Due Dates
The Municipality of Anchorage outlines specific due dates for its residents, providing a streamlined framework for fulfilling their property tax obligations. Alaska Property Tax bills are mailed by July 1 and are payable in two installments. Those who prefer to make one payment may do so by August 15; the second half is due in November 15.
To avoid late fees, payments must be received or postmarked by the return due date. In addition, the municipality charges a convenience fee of 2.95% for credit and debit card payments and a $1.95 fee for eCheck payments. For more information on these and other payment options, see the Municipality of Anchorage’s property tax calendar. The Municipality also accepts cash payments at its collection offices.
