Alaska Short-Term Rental Tax Overview
Alaska imposes no state income tax on net rental income, combined with Municipal Bed Tax / Transient Room Tax at 0-12% on gross rental receipts. No statewide lodging tax; boroughs and cities set their own rates. The total tax burden for Airbnb hosts in Alaska varies by location, ranging from approximately 12% in Anchorage to 6% in Sitka. Understanding the layered structure of federal, state, and local taxes is essential for compliance and accurate pricing.
This guide covers the 2026 tax year. Tax rates and rules change frequently — always verify current rates with the Alaska Department of Revenue (Tax Division) and consult a qualified tax professional for advice specific to your situation. Federal tax obligations (Schedule E, Form 1099-K, the 14-day rule) apply in addition to all state and local taxes described below. See IRS Publication 527 for federal rental income rules.
Income Tax on Rental Income
Rate: 0%
Alaska has NO state income tax — one of nine states with no individual income tax
- No state income tax return required for rental income
- Federal Schedule E (or Schedule C if substantial services provided) is required regardless of state tax
- The 14-day rule: if you rent your primary residence 14 days or fewer per year, federal rental income is tax-free (IRS Publication 527)
- Federal self-employment tax may apply if you provide substantial services to guests
Municipal Bed Tax / Transient Room Tax
Rate: 0-12%
No statewide lodging tax; boroughs and cities set their own rates
What Airbnb Collects Automatically
- Some municipal taxes in select jurisdictions (varies — check Airbnb collection status for your area)
What Hosts Must Collect and Remit
- Borough or municipal bed tax / transient room tax
- Some cities require separate registration and remittance
Local Tax Rates by City in Alaska
Combined estimated occupancy/lodging tax rates including state + local components (income tax not included):
| City / Area | Local Tax Rate | Combined Rate | Registration Required? |
|---|---|---|---|
| Anchorage | 12% room tax | 12% | Yes |
| Fairbanks | 8% bed tax | 8% | Yes |
| Juneau | 9% room tax | 9% | Yes |
| Ketchikan Gateway Borough | 6% bed tax | 6% | Yes |
| Kenai Peninsula Borough | 0% | 0% | No |
| Sitka | 6% transient room tax | 6% | Yes |
Deductions for Alaska Airbnb Hosts
Because Alaska has no state income tax, state-level deductions for rental expenses are irrelevant. However, all standard federal deductions apply: depreciation over 27.5 years, mortgage interest, property taxes, insurance, cleaning, supplies, utilities (proportional to rental use), and Airbnb platform fees. Alaska hosts benefit from keeping 100% of their rental income after federal taxes — no state tax erosion. This makes Alaska one of the most tax-friendly states for Airbnb hosts.
Common Deductible Expenses
- Depreciation — Building cost over 27.5 years (IRS Publication 946); often the largest single deduction
- Mortgage interest — Deductible in proportion to rental use percentage
- Property taxes — Proportional to rental use days vs. personal use days
- Insurance — STR-specific or landlord insurance premiums
- Cleaning and maintenance — All turnover cleaning fees, repairs, and upkeep
- Supplies — Linens, toiletries, coffee, kitchen supplies for guests
- Platform fees — Airbnb host service fees (typically 3%) are fully deductible
- Utilities — Electricity, internet, water, gas proportional to rental use
- Professional fees — CPA, tax preparer, attorney fees related to the rental business
Filing Requirements and Deadlines
Registration
Required: Business License + Municipal Permit
Cost: State business license: $25/year; municipal permits vary
Register at: Alaska Department of Revenue (Tax Division)
Filing Schedule
Varies by municipality (monthly or quarterly for bed tax); no state income tax return required
Key Resources
Common Alaska Tax Mistakes for Airbnb Hosts
Mistake #1
Assuming no taxes at all because Alaska has no income tax — municipal bed taxes of 6-12% still apply and must be collected from guests and remitted to the local government.
Mistake #2
Not obtaining an Alaska state business license — all businesses operating in Alaska, including short-term rentals, need a state business license ($25/year) from the Division of Corporations.
Mistake #3
Failing to register with the local municipality — Anchorage, Juneau, and Fairbanks all require separate STR registration and tax remittance to the city or borough.
Alaska Short-Term Rental Regulations Beyond Tax
Alaska has no statewide STR regulations. Each municipality sets its own rules. Anchorage requires a business license and imposes a 12% room tax. Juneau has debated STR restrictions but currently requires only registration and tax collection. Fairbanks North Star Borough imposes an 8% bed tax. Some unincorporated areas and boroughs have no STR-specific requirements. The Kenai Peninsula Borough notably has no bed tax, making it one of the most STR-friendly areas in the state.
Calculate Your Alaska Airbnb Tax
Enter your income, expenses, and select Alaska to get an instant federal + state estimate.
Frequently Asked Questions
Does Alaska tax Airbnb income?
Alaska has no state income tax, making it one of the most tax-friendly states for Airbnb hosts. However, many municipalities impose local bed taxes or transient room taxes ranging from 0% to 12%. Anchorage charges 12%, Juneau 9%, and Fairbanks 8%. Hosts must still report all rental income on their federal tax return (Schedule E or Schedule C). The combination of no state income tax plus moderate local taxes makes Alaska a relatively low-tax state for short-term rental operators.
Does Airbnb collect Alaska taxes automatically?
Because Alaska has no statewide tax, Airbnb's collection varies by municipality. In some jurisdictions, Airbnb has entered into collection agreements for local bed taxes. In others, the host must collect and remit the tax directly. Always check Airbnb's "Occupancy Tax Collection" page for your specific Alaska listing location. Even if Airbnb collects the tax, you should verify the amounts match your local requirements.
Do I need a license to Airbnb in Alaska?
Yes. All businesses in Alaska — including short-term rentals — need an Alaska State Business License ($25/year) from the Division of Corporations, Business, and Professional Licensing. Additionally, most municipalities require local business licenses or STR-specific permits. In Anchorage, you need both a city business license and registration with the municipal tax office. Check your specific borough or city requirements.
What can Alaska Airbnb hosts deduct on taxes?
Since Alaska has no state income tax, deductions only apply to your federal return. Standard federal deductions include: depreciation (27.5-year MACRS), mortgage interest and property taxes (proportional to rental use), insurance, cleaning costs, guest supplies, utilities, Airbnb service fees, advertising, professional photography, and property management fees. You may also deduct travel expenses to and from the property if it is not your primary residence. See IRS Publication 527 for the complete list.
Which Alaska cities have the lowest Airbnb taxes?
The Kenai Peninsula Borough has no bed tax, making it the lowest-tax area for Airbnb hosts in Alaska. Sitka and Ketchikan charge 6%, which is moderate. Anchorage has the highest rate at 12%. If you are choosing between locations for an investment property, the local tax rate difference of 0-12% is significant and worth factoring into your revenue projections.