January 13, 2015

Alaska

State & Local Taxes in 2015

 

Alaska Tax Code Features

Progressive Features

• No statewide sales tax

• Requires the use of combined reporting for the corporate income tax

Regressive Features

• No personal income tax

• Local sales tax bases include groceries

• Fails to provide tax credits to offset sales, excise, and property taxes

Tax Changes Enacted in 2013 & 2014

• Revised corporate income tax structure by eliminating tax on income less than $25,000 and moved the top tax bracket from $90,000 to $222,000

• New tax break for oil and gas companies

ITEP Tax Inequality Index

According to ITEP’s Tax Inequality Index, Alaska has the 36th most unfair state and local tax system in the country. States with regressive tax structures have negative tax inequality indexes, meaning that incomes are less equal in those states after state and local taxes than before (See Appendix B for state-by-state rankings and more details).

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