Alaska has no state income tax or state sales tax, making property taxes a vital funding source for local boroughs. Despite this, the statewide effective property tax rate remains a moderate 0.94%, buffered heavily by oil and gas revenue. Rates vary wildly depending on whether you live in an organized borough or the vast Unorganized Borough, which levies no property tax at all (est., Tax Foundation 2026).
Property taxes in Alaska are highly localized. If you live in an organized municipality (like Anchorage or Juneau), property taxes are the lifeblood of the local government. However, large portions of the state exist within the “Unorganized Borough,” where there is no local government and consequently no property tax whatsoever.
100% Assessment and Reappraisal
In Alaska, property is assessed by the borough or municipality at 100% of fair market value. Municipal assessors are required by state law to re-value all taxable property annually as of January 1.
To ensure accuracy, municipalities generally conduct a physical inspection of every property at least once every 6 years (such as in Anchorage), updating valuations via statistical models in the intervening years.
Alaska statewide effective rate. On a $350,000 home, expect approximately $3,290 per year at the statewide average. (est., Tax Foundation 2026).
| Home Value | Annual Tax (est.) | Monthly Payment | vs. U.S. Average |
|---|---|---|---|
| $300,000 | $2,820 | $235 | +$120 above avg. |
| $450,000 | $4,230 | $352 | +$180 above avg. |
| $600,000 | $5,640 | $470 | +$240 above avg. |
| $800,000 | $7,520 | $626 | +$320 above avg. |
| $1,000,000 | $9,400 | $783 | +$400 above avg. |
Estimates use 0.94% statewide effective rate. U.S. average uses 0.90%. Source: est., Tax Foundation / Census ACS.
The 30-Mill Cap and Local Limits
To protect homeowners from runaway taxation, the State of Alaska imposes a strict cap on municipal property taxes. Under AS 29.45.090, municipalities are capped at levying a maximum of 30 mills (which equates to 3% of the assessed value).
There are exceptions: the 30-mill limit does not apply to taxes levied to pay off voter-approved general obligation bonds. Additionally, local voters can impose even stricter limits via ballot initiative (such as Juneau’s historical 9 to 12 mill limits on operational budgets).
The $150,000 Senior & Disabled Veteran Exemption
Alaska offers a powerful mandatory exemption for its most vulnerable residents. By state law, every municipality that levies a property tax MUST exempt the first $150,000 of assessed value on the primary residence of:
- Seniors aged 65 and older
- Disabled veterans (with a 50% or greater service-connected disability rating)
- Surviving spouses aged 60+
On top of this state mandate, local boroughs have the authority to grant further optional exemptions, sometimes exempting the entire value of the home for qualified seniors.
Estimated Rates Across the Top 10 Boroughs
Tax rates vary wildly in Alaska depending on the region’s commercial tax base. The North Slope Borough levies a high rate to capture massive revenue from oil and gas infrastructure, while the Kenai Peninsula enjoys a much lower burden. The Bethel Census Area (part of the unorganized borough) generally levies no property tax at all outside of specific city limits.
| Borough / Census Area | Effective Rate | Annual Tax on $350k Home | Notes |
|---|---|---|---|
| Anchorage Municipality | ~1.29% | $4,515 | Highest population; heavy municipal service needs. |
| Matanuska-Susitna | ~1.07% | $3,745 | Rapidly growing Anchorage suburb region. |
| Fairbanks North Star | ~1.21% | $4,235 | Interior hub; includes Eielson AFB/Fort Wainwright. |
| Kenai Peninsula | ~0.72% | $2,520 | Low effective rate. |
| Juneau City & Borough | ~1.00% | $3,500 | State Capital; strict local mill caps. |
| Bethel Census Area | 0.00% | $0 | Unorganized borough; generally no property tax. |
| Ketchikan Gateway | ~0.93% | $3,255 | Southeast region. |
| Kodiak Island Borough | ~1.13% | $3,955 | Island municipality. |
| North Slope Borough | ~1.80% | $6,300 | Heavily funded by oil/gas property levies. |
| Nome Census Area | ~1.15% | $4,025 | Rate applies only within specific organized city limits. |
Disclaimer and Methodology
This calculator provides estimates for planning purposes only, based on effective property tax rates (actual median taxes paid divided by median home values). In Alaska, property taxes are levied by boroughs and municipalities. This calculator uses historical “effective rates” to bypass complex overlapping service area mill rates and provide a highly realistic estimate of actual homeowner burden.
What this calculator does not account for:
- Properties located within the Unorganized Borough that fall outside of any incorporated city limits, which are exempt from property taxes entirely.
- Local optional exemptions (such as volunteer firefighter credits or extended senior exemptions) that vary strictly by municipality.
How to get an accurate estimate:
- Find your home’s 100% Assessed Value on your borough’s property search tool.
- Subtract the mandatory $150,000 state exemption (if you are 65+ or a disabled veteran).
- Multiply the remaining value by your specific local mill rate, and divide by 1,000.
Data sources: Statewide effective rate and aggregate borough effective rates derived from the Tax Foundation, Census ACS, and SmartAsset aggregations. Statutory rules, exemption limits, and mill caps from the Alaska Department of Commerce, Community, and Economic Development.
Return to the National Property Tax Calculator to compare Alaska with other states.