Alaska Business Taxes at a Glance
Alaska is the only state with neither a personal income tax nor a statewide sales tax. That does not mean Alaska businesses have few tax obligations. Corporations pay state income tax, many boroughs and cities levy their own sales taxes, the fishing and oil and gas industries have their own tax systems, and employees as well as employers pay into unemployment insurance. BOMCAS helps Alaska businesses and individuals manage these state and local requirements along with their federal returns.
No State Income Tax on Individuals
Alaska does not tax wages, investment income, or business income earned by individuals. Sole proprietors, partners, and S corporation shareholders who live in Alaska report that income only on their federal return, and generally in any other state where the income is earned.
The Permanent Fund Dividend is a special case. Alaska pays it to eligible residents each year, and it is not taxed by the state, but it is taxable income on the federal return. For children with a dividend, the federal rules for a child's unearned income may apply. We include it correctly in federal returns and in estimated tax planning.
Corporate Income Tax
Alaska taxes C corporations on their income, using graduated rates. Multistate corporations apportion income to Alaska, and oil and gas producers and pipeline companies follow special apportionment rules. S corporations and LLCs taxed as partnerships are generally not subject to the corporate tax, but they may still have reporting requirements.
We prepare Alaska corporate returns, compute apportionment for companies that operate in Alaska and other states, and keep the state-specific adjustments organized from year to year.
Local Sales Taxes Without a State Sales Tax
Many Alaska boroughs and cities levy their own sales taxes, with different rates, exemptions, and filing rules. Some also tax specific items such as lodging, alcohol, tobacco, or rental cars. Other communities have no sales tax at all. A business that sells in several communities can face several separate local filings.
For sales into Alaska from outside a community, many local governments have joined the Alaska Remote Seller Sales Tax Commission. Remote sellers above the Commission's threshold register through it and use a common code for member communities. We help businesses decide where they must collect, register with each local authority or the Commission, and file the returns.
Fisheries Taxes
Commercial fishing is central to Alaska's economy, and it has its own taxes administered by the Tax Division. They include:
- The fisheries business tax, generally paid by processors and businesses that export unprocessed fish from Alaska
- The fishery resource landing tax, for fish processed outside state waters and landed in Alaska
- Seafood marketing and salmon enhancement assessments, depending on the fishery and region
Processors, buyers, and permit holders need accurate records of landings, prices, and sales. We set up books that match the information these returns require and that support federal reporting for fishermen and processing businesses.
Oil, Gas, and Resource Industries
Oil and gas production is subject to production tax and oil and gas property tax, as well as the corporate income tax. Most of this work is handled by large companies with in-house teams, but oilfield service companies, contractors, and suppliers also face accounting challenges: remote job sites, travel and per diem costs, equipment records, and multistate payroll. We help these businesses with bookkeeping, job costing, and federal and Alaska corporate tax compliance.
State Business License
Almost every business operating in Alaska needs a state business license from the Division of Corporations, Business and Professional Licensing, and some professions also need a professional license. Licenses must be renewed on schedule. This is separate from entity registration and from any local permits. We add these renewals to each client's compliance calendar.
Payroll and Unemployment Insurance
Alaska employers do not withhold state income tax. But Alaska is one of the few states where employees as well as employers pay unemployment insurance tax, so the employee share must be withheld from each paycheck. Employers file quarterly reports with the Department of Labor and Workforce Development.
Seasonal work is common in fishing, tourism, and construction, and many workers come from outside Alaska. That means hiring spikes, short employment periods, and nonresident employees whose home states may expect returns. We run payroll, handle the quarterly filings, and reconcile wages to the general ledger.
Tourism and Seasonal Businesses
Cruise visitors, lodges, guides, and charter operators bring the busiest part of the year into a few months. These businesses need:
- Local sales and bed tax filings in the communities where they operate
- Cash flow planning for the off-season
- Payroll for seasonal staff
- Clear records of deposits and refunds for future bookings
We help seasonal operators prepare for the season and close the books cleanly once it ends.
Rural and Remote Operations
Many Alaska businesses work in communities reachable only by air or water. Bookkeeping often relies on paper records, intermittent internet, and long supply chains. We work remotely with secure document upload, and we can set up straightforward processes that fit these conditions, including scanning receipts and batching transactions.
Talking With BOMCAS About Alaska
Alaska clients usually reach us with one of three questions: whether a borough's sales tax or the remote seller commission applies to them, how to handle fisheries tax reporting, or how to keep corporate returns and payroll current from a remote location. Contact BOMCAS to set up a review. Alaska city and service pages will follow under this section. For an overview of our work, see the BOMCAS home page and our United States services. The information here is general and is confirmed against your facts before any filing.
Talk to BOMCAS About Your Alaska Taxes
Have a question about your Alaska filings, payroll or bookkeeping? Contact BOMCAS or use the contact form below, and we will get back to you as soon as possible. You can also browse all United States services.