Alaska Property Tax Overview

Keywords: Alaska property tax, property tax in Alaska, Alaska property tax rate

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Key Statistics (ACS 2023)

*Effective tax rate = median annual tax ÷ median home value.

Source: According to the U.S. Census Bureau's American Community Survey (ACS) (5‑year estimates, 2023).

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Sample Property Tax Bills

Using the average effective Alaska property tax rate of 1.14 %, the following illustrate typical annual taxes for residential properties:

Calculation: Home value × 1.14 % = estimated tax.

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How Alaska Property Tax Rates Vary

• County/ borough differences: Alaska is divided into boroughs and unorganized areas. Each local jurisdiction sets its own millage rates, assessment practices, and exemptions, resulting in variation across the state.
• Assessment methods: Some boroughs assess property at market value, while others use a percentage of market value.
• Exemptions and credits: Homestead exemptions, senior citizen exemptions, and other credits can reduce the taxable amount for eligible owners.

Because of these differences, the Alaska property tax rate can be higher or lower than the state‑wide average of 1.14 % depending on the specific borough.

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Comparison to the National Average

• The national average effective property tax rate (based on the same ACS data) is 0.97 %.
• Alaska’s effective rate of 1.14 % is 17.35 % above the national average.
• In a ranking of all U.S. states and territories, Alaska falls 37th, indicating a relatively higher property tax burden compared with many other jurisdictions.

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Implications for Specific Groups

Retirees

• Tax burden: The higher effective rate means retirees owning a home will generally pay more in property taxes than the national average.
• Exemptions: Many boroughs offer senior or homestead exemptions that can lower the taxable value, partially offsetting the higher rate.
• No state income tax: Alaska does not levy a personal income tax, which may offset higher property taxes for retirees whose income derives primarily from pensions or investment returns.

Landlords

• Cash flow considerations: Higher property taxes increase operating expenses for rental properties.
• Assessment frequency: Property values are reassessed periodically; rising home values can raise tax obligations over time.
• Deductibility: Property taxes are generally deductible as a business expense on federal income tax returns, which can mitigate the impact on net cash flow.

All statements are factual and based on the ACS data and publicly available tax policy information; they do not constitute advice or endorsement.

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Frequently Asked Questions

Q1: How is the effective property tax rate calculated in Alaska?
A: The effective rate is the median annual property tax divided by the median home value. For Alaska, the ACS 2023 median home value of $333,300 and median annual tax of $3,785 yield an effective rate of approximately 1.14 %.

Q2: Do property tax rates differ between boroughs?
A: Yes. Each borough (or the unorganized area) sets its own millage rates and may apply different assessment percentages and exemptions, so the property tax in Alaska can vary significantly by location.

Q3: Are there any statewide exemptions that reduce property taxes?
A: Alaska offers a statewide homestead exemption that reduces the assessed value of a primary residence for qualifying owners, and many boroughs provide additional senior or disability exemptions. Eligibility requirements and exemption amounts differ by jurisdiction.

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All figures reflect the most recent ACS 5‑year estimates (2026) and are presented for informational purposes only.