Property Management Taxes In Alaska

Updated August 7, 2026

9 min read

This guide covers the taxes that actually apply to a property management company operating in Alaska, and to the rental income it handles on behalf of owners. Every figure below is tied to the statute, agency rule, or published guidance that sets it, so you can confirm a rate or deadline before acting on it.

Sales Tax On Rent: What Applies And What Does Not

Alaska has no statewide sales tax, so there is no state sales tax on rent of any kind. What does exist is local. Boroughs and cities may each levy their own sales tax, and where they do the local code decides whether rent is taxable. The common pattern is that long-term residential rent is exempt while short-term or transient lodging is taxed, often with a separate hotel or bed tax stacked on top. A manager operating in more than one borough must check each local code separately, because there is no single statewide answer.

There is no statewide sales tax levied in Alaska. (Alaska Tax Facts, Office of the State Assessor)
State law allows both cities and boroughs to levy a sales tax. Of 162 municipal governments in Alaska, approximately 110 levy some form of sales tax, ranging from a low of 1 percent to a high of 7 percent. (Sales Tax, Local Government Resource Desk)
If both a borough and a city located within that borough levy sales taxes, the sales tax due from the consumer is the sum of the two taxes. (Sales Tax, Local Government Resource Desk)
In the City and Borough of Juneau, long-term residential rentals are exempt from both sales tax and hotel-room tax, and businesses that operate only long-term residential rentals are not required to register or file with the Sales Tax Office. (City and Borough of Juneau, Sales Tax Guidelines)
In Juneau, a short-term rental provides residential lodging for fewer than 30 consecutive days to the same occupant and is subject to both the 5 percent sales tax and the 9 percent hotel-room tax, a combined 14 percent. (City and Borough of Juneau, Short Term Rentals)

Property Tax

Alaska has no statewide general property tax on real estate. Property tax is a local option and only a minority of Alaska municipalities levy one, though those that do include the largest population centers. Where it applies, the local assessor values property at full and true value, meaning fair market value, and state law caps the levy at 30 mills. The mandatory senior and disabled-veteran exemption is tied to owner occupancy as a permanent place of abode, so it is not available on tenant-occupied rental property.

Alaska is the only state in the United States where a large part of the land mass is not subject to a property tax, and property tax is levied by local governments rather than the state. (Alaska Tax Facts, Office of the State Assessor)
Only 24 municipalities in Alaska, whether cities or boroughs, levy a property tax, and only 9 cities located outside of boroughs levy one. (Property Tax, Local Government Resource Desk)
Property in Alaska must be assessed at full and true value, which is the best possible estimate of the amount the property would sell for in an arm's length transaction between a willing buyer and a willing seller. Limited variations on full and true value appear in AS 29.45.060 through .065, AS 29.45.110, and AS 29.45.230 for uses such as farm use, conservation easements, or property affected by a natural disaster. (AS 29.45.110; Property Assessments in Alaska, Local Government Resource Desk)
Under AS 29.45.090 a municipality may not levy a property tax in excess of 3 percent, that is 30 mills, of assessed value. The limitation does not apply to taxes pledged to pay bonded debt or to service area taxes, both of which are requested by the electorate. A mill is one thousandth of a dollar, so the mill rate states the tax charged per $1,000 of assessed value. (AS 29.45.090; Property Tax, Local Government Resource Desk)
AS 29.45.030(e) creates a mandatory exemption for the first $150,000 of assessed value on the primary residence of a senior citizen age 65 or older or a disabled veteran with a service-connected disability of 50 percent or more. The property must be owned and occupied as the primary residence and permanent place of abode, which means it does not apply to tenant-occupied rental property. All municipalities are required to grant this exemption, and the application deadline is set locally. (AS 29.45.030(e); Property Tax Exemptions in Alaska, Local Government Resource Desk)
AS 29.45.050 lists optional exemptions a municipality may enact, including up to $50,000 of a primary residence and the option to increase the senior and disabled-veteran exemption above the first $150,000. These are also keyed to primary residence status rather than rental use. (AS 29.45.050; Property Tax Exemptions in Alaska, Local Government Resource Desk)
In the Municipality of Anchorage, real property taxes are due June 30, or may be paid in two installments with the first half due June 30 (late penalty assessed July 8) and the second half due August 31 (late penalty assessed September 8). (Municipality of Anchorage, Dates for Property Taxation)
Anchorage real property assessment notices are mailed in mid January each year, and appeals must be filed within 30 days from the date the notice was mailed, received or postmarked by the date shown on the face of the notice. (Municipality of Anchorage, FAQs about Appealing Assessments)

Registration And Recordkeeping

Alaska's two registration hurdles for a property management company are a state business license and a real estate license. The second one is the sharper trap: Alaska law makes it unlawful to collect rent or property management fees without a real estate broker, associate broker or salesperson license. Licensed brokers must hold rents in a trust account and keep transaction records for three years.

Under AS 43.70.020(a) a business license is required for the privilege of engaging in business in the State of Alaska. Under AS 43.70.110(1) a business is a for-profit or non-profit entity engaging or offering to engage in a trade, service, profession or activity with the goal of receiving a financial benefit in exchange for services, goods or other property. (AS 43.70.020(a) and AS 43.70.110(1); Business Licensing FAQs)
The Alaska business license fee is $50 per year, including all or part of the initial year, and $100 for a biennial license period, reduced to $50 for a biennial license qualifying under AS 43.70.030(a)(1) or (2). (Business Licensing FAQs)
Unless licensed as a real estate broker, associate real estate broker, or real estate salesperson in Alaska, a person may not collect rent for the use of real estate, collect fees for property management, or practice or negotiate for a contract to practice property management. (Alaska Statutes Title 8, Chapter 88; Alaska Real Estate Commission Statutes and Regulations)
A real estate broker must keep a separate trust account in a bank into which the broker deposits all earnest money deposits, purchase money, security deposits, contingency funds, collected rental money, rental receipts, or other money belonging to others. (Alaska Real Estate Commission Statutes and Regulations)
A real estate broker must keep a complete record for three years of all real estate transactions in which the broker or the broker's employed licensees engaged, and must provide an accounting on request to any principal for all money or other property collected or held in the course of each transaction. (Alaska Real Estate Commission Statutes and Regulations)
All real estate exclusive listings and management contracts must have a definite expiration date, which may be renewed or extended only by a written agreement signed by the client or the client's authorized representative. (Alaska Real Estate Commission Statutes and Regulations)
Local sales tax registration is a separate, municipality-by-municipality question. In Juneau, for example, businesses that operate only long-term residential rentals are not required to register or file with the Sales Tax Office, while short-term rental operators are. (City and Borough of Juneau, Sales Tax Guidelines and Business Registration)

Recent Changes Worth Tracking

Effective January 1, 2026: The Alaska unemployment insurance taxable wage base rose to $54,200 per employee and the employee contribution rate was set at 0.50 percent for the 2026 calendar year. (Alaska Department of Labor and Workforce Development, 2026 Unemployment Insurance Tax Rates)

Tax is one half of Alaska compliance. See our guide to Alaska property management laws and regulations for licensing, trust account, and disclosure rules.

This page is one half of the picture. See our guide to how Alaska taxes rental and management income for the rest.

Keeping This Straight

Tax rates and thresholds move more often than most operators expect, and the figures circulating in older articles go stale quickly. Check any rate against its citation before you quote it to an owner, and re-check them at the start of each tax year.

This guide is a starting point for professional managers, not tax or legal advice. For a specific filing, work with a CPA familiar with Alaska rental property, and confirm current figures with the Alaska Department of Revenue, Tax Division, with boroughs and municipalities administering the taxes that actually touch rental property or the IRS.