Rental Property Taxes in Alaska (2026 Guide)

1. No State Income Tax

Alaska has no individual state income tax — the legislature repealed it in 1980 and Title 43 of the Alaska Statutes contains no chapter taxing personal income. Your rental income and any gain on sale carry zero Alaska income tax; you only report them federally on Schedule E (and Form 4797 / Schedule D on a sale).

The state even blocks local income taxes: AS 43.20.290 bars any city or borough from levying a tax on the net income of individuals. Alaska funds itself largely through oil and gas revenue, not from taxing residents.

2. Property Tax Is Borough-by-Borough

Alaska has no statewide property tax. Real property tax is levied only by organized boroughs and municipalities (under AS 29.45), so your bill depends entirely on where the rental sits. The state has large unorganized areas with no borough government at all — and properties there often pay no real property tax.

• Municipality of Anchorage — among the highest in the state, with a combined mill rate generally in the ~14–16 mills range (roughly 1.4%–1.6% of assessed value).
• Fairbanks North Star Borough — combined rates commonly around ~11–13 mills, varying by service area.
• Matanuska-Susitna (Mat-Su) Borough — among the lower organized-borough rates, often around ~10 mills.
• Unorganized / unincorporated areas — frequently no property tax at all, since there is no taxing authority.

3. No Statewide Sales Tax (But Some Local Ones)

Alaska has no statewide sales tax. About 100+ municipalities levy a local sales tax (commonly 1%–7%), and some apply it to short-term lodging via a bed/transient-room tax. Anchorage and Fairbanks charge no general sales tax.

4. No Real Estate Transfer Tax

Alaska imposes no real estate transfer tax and no documentary stamp tax at the state or local level — one of a handful of states with neither. When you buy or sell a rental, you pay ordinary recording fees and standard closing costs, but no percentage-of-price transfer tax.

5. LLC & Business License Costs

Alaska keeps LLC carrying costs low, and uniquely files reports on a two-year cycle rather than annually:

• $250 Articles of Organization — one-time filing with the Division of Corporations, Business & Professional Licensing to form the LLC.
• Initial Report — free, due within six months of formation.
• $100 Biennial Report — filed every two years to stay in good standing (the next report is due January 2).
• $50/year Alaska Business License (AS 43.70) — Alaska treats renting real property as a business activity, so most landlords need this license; confirm your situation with the Division.

6. Security Deposits & Rent Control

Residential rentals are governed by the Alaska Uniform Residential Landlord and Tenant Act (AS 34.03). The security-deposit rules in AS 34.03.070 are stricter on timing than many states:

• Maximum deposit of 2 months’ rent — but this cap does not apply where the rent exceeds $2,000 a month (AS 34.03.070).
• Return within 14 days after the tenancy ends if the tenant gave proper notice of termination.
• Return within 30 days if the tenant did not give proper notice, with a written itemized statement of any deductions.

Alaska has no statewide rent control and no statewide cap on rent increases — you set rents at market, subject to the notice terms in your lease and AS 34.03.

7. How SheltrIQ Helps Alaska Landlords

With no state income tax, the Alaska game is maximizing federal deductions and not overpaying a borough property tax bill that varies wildly by location — SheltrIQ covers both:

• Maximized federal deductions — AI Schedule E classification and full depreciation schedules so every write-off lands on the federal return.
• Depreciation and cost-seg support — builds 27.5-year MACRS and tracks improvements and personal property over time.
• Per-property tracking — keeps each rental’s borough property tax and local lodging tax organized when you own across multiple Alaska boroughs.
• Deadline reminders — keeps the $100 biennial LLC report, the $50 business license renewal, and your deposit-return windows on your radar.
• Disposition modeling — projects federal tax on a sale with no Alaska income-tax layer to worry about.