Alaska
Taxes and business formation • USA 2025–2026
TL;DR
Alaska at a glance — 2026 figures
State filing fees and tax position for individuals and companies registered in Alaska.
| Parameter | Value |
|---|---|
| Personal income tax | None |
| LLC formation fee | $250.00 |
| LLC annual report fee | $100.00 |
| LLC annual report deadline | January 2 (even years only) |
| LLC dissolution fee | $25.00 |
| Corporation formation fee | $250.00 |
| Corporation annual report fee | $100.00 |
State filing fees are set by the Secretary of State and change without notice — the official source is linked in each section below. Federal figures for tax year 2026 are on the 2026 tax cheat sheet.
Updated: August 2026
LLC in Alaska
Corporation in Alaska
Tax system of Alaska
Income Tax
Alaska is one of the few states with no personal income tax at all. Residents are exempt from tax on wages, business income, investments, rental income, and capital gains, which makes Alaska especially attractive to high-income professionals, entrepreneurs, and investors.
Sales Tax
There is no statewide sales tax, but more than 100 Alaska municipalities have the authority to impose their own local sales tax, with rates ranging from 1% to 7% depending on the city or borough. Some cities, such as Juneau, Kodiak, and Wasilla, actively levy a local sales tax, while in other communities there is no sales tax at all.
Property Tax
Alaska does not levy a property tax at the state level, but municipal and school districts set their own rates. The average effective rate is about 1.19% of market value, which is slightly above the U.S. average.
Business Taxes
Alaska imposes a Corporate Income Tax on C-corporations using a progressive scale — from 0% (on taxable income up to $25,000) to 9.4% (on taxable income above $222,000). S-corporations and LLCs are not subject to this tax because their profits pass through to the owners, which significantly reduces their overall tax burden. All registered companies must file an Annual Report by January 2 of each year. Our firm provides services for LLC and corporation registration, Annual Report preparation, corporate tax calculation, tax structure selection, and overall tax optimization.
Excise Taxes
Alaska imposes excise taxes on fuel, alcohol, tobacco, gambling, and fishing products. There are also taxes and fees associated with the extraction of natural resources (for example, oil and gas) — severance taxes and production taxes — which can be significant for extractive companies.
Favorable Tax Conditions
Alaska offers some of the most favorable conditions for individuals and certain types of businesses: • No personal income tax at all, • No statewide sales tax, • No estate tax, • Low tax burden on LLCs and S-corporations, • Residents can receive annual dividend payments from the Alaska Permanent Fund, • A simple reporting system for small business.
Compared to Other States
• No personal income tax (as in Florida, Texas, or Wyoming); • No statewide sales tax (unlike Delaware, New Hampshire, or Oregon); • Some cities do impose a local sales tax (as in Montana); • The corporate tax can reach 9.4% — above the U.S. average — but the tax burden on LLCs and S-corporations is minimal or zero; • The Annual Report is mandatory, but the filing procedure and fees are simple and affordable.
Frequently asked questions
Does Alaska have a personal income tax?+
No. Alaska does not levy a personal income tax on wages or self-employment income. You still file a federal Form 1040 with the IRS every year, and you may owe tax to another state if you earned income there.
How much does it cost to register an LLC in Alaska?+
The state filing fee in Alaska is $250.00. On top of that you need a registered agent with a physical address in the state, and FinTaxes charges from $299 for the formation service itself.
When is the annual report due for a Alaska LLC?+
The Alaska annual report fee is $100.00, due January 2 (even years only). Missing it typically triggers a late penalty and, if left unresolved, administrative dissolution of the company.
Do I need to live in Alaska to open an LLC there?+
No. You do not need to live in Alaska — or in the United States at all — to own an LLC registered there. Non-residents can form and own a US LLC; what the state requires is a registered agent with a physical in-state address. Your own tax residency is a separate question and decides which returns you file.
Can FinTaxes file my Alaska state return remotely?+
Yes. FinTaxes prepares and e-files federal and Alaska state returns entirely remotely, for clients anywhere in the US or abroad, as an Authorized IRS e-file Provider.
Starting a business in Alaska?
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