Alaska Sales Tax Nexus

Alaska sales tax nexus

At A Glance

Tax Rates: 1% to 7.5%
Economic Nexus: $100,000 in any consecutive 12-month period.
Physical Nexus: Inventory, retail location, office space, employees in state, attending events and trade shows. Alaska has a broad interpretation of nexus, so be cautious if you have any doubts.

Better yet, because of the complexity, call us for a free consultation at 720.878.2280.

Alaska Sales Tax Nexus & Income Tax Nexus

Alaska Sales Tax Nexus

Alaska has two types of sales tax nexus: physical nexus and economic nexus.

  • Physical nexus is created when a business has a physical presence in Alaska, such as a retail store, warehouse, inventory, or the regular presence of traveling salespeople or representatives.
  • Economic nexus is created when a business meets certain sales or transaction thresholds in Alaska. The economic nexus threshold in Alaska is $100,000 in sales or 200 or more transactions in the current or previous calendar year.

Alaska Income Tax Nexus

Alaska does not have a state income tax. However, businesses that do business in Alaska may be subject to the income tax laws of the local municipalities where they sell goods or services.

Thresholds

The thresholds for economic nexus in Alaska are as follows:

  • Sales: $100,000 in sales or 200 or more transactions in the current or previous calendar year.
  • Transactions: 200 or more transactions in the current or previous calendar year.

Includable Sales

For the purposes of calculating economic nexus, all sales are included, including sales on marketplaces.

Registration

Businesses that have nexus in Alaska are required to register for a sales tax permit with the Alaska Department of Revenue. The registration deadline is 30 days after the date that nexus is created.

Reporting

Businesses that are registered for sales tax in Alaska are required to file sales tax returns on a monthly or quarterly basis. The return due dates are the 20th day of the month following the reporting period.

Penalties

Businesses that fail to register for sales tax or file sales tax returns in Alaska may be subject to penalties. The penalties can be significant, so it is important to be compliant with the sales tax laws.

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