Alaska Property Tax Calculator

Alaska Property Taxes

The average effective property tax rate in the state is 1.17%, which is 0.18% higher than the 0.99% national average. Homeowners in Alaska benefit from the state’s otherwise taxpayer-friendly environment. There are no income taxes in the state, and full-time state residents receive an annual dividend check from the state’s “permanent fund.” In the past year the dividend has reached it's highest point at $3,284 per person, the largest in it's 41-year history. It's in effect to offset some or most of the property taxes paid by Alaskan homeowners.

If you’re looking into purchasing a home in Alaska, or are interested in a refinance, check out our Alaska mortgage guide for details on mortgages in the Last Frontier.

A financial advisor can help you understand how homeownership fits into your overall financial goals. SmartAsset’s free tool matches you with up to three vetted financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.

How Property Taxes in Alaska Work

Property taxes in Alaska are administered entirely at the local level. Boroughs (the equivalent of counties) and cities assess property values and apply rates to fund local government functions and school districts.

Value is assessed based on a property’s market value. While the municipality assigns all property a value every year, the local assessor is only required to visit a property for appraisal once every six years. Homeowners who feel that their assessed value is incorrect have 30 days to file an appeal with the local Board of Equalization. Supporting evidence must be filed within 45 days.

There are a number of property tax exemptions available in some Alaska municipalities. These exemptions lower your assessed value and therefore the amount of taxes you have to pay. For example, in Anchorage, senior citizens can claim an exemption on up to $150,000 of their assessed value, which substantially reduces their annual tax bill.

Alaska Property Tax Rates

Alaska property tax rates are recalculated each year after all property values have been assessed. Tax rates are based on the total value of each property and the amount of revenue needed to maintain government budgets. These rates are calculated as “mills.” A mill is equal to $1 of tax for every $1,000 in assessed value. So, for example, if your home is worth $100,000 and your total mill rate is 30, your tax will be $3,000.

The table below shows tax rates and average annual payments for all Alaska municipalities and boroughs that collect property tax. It shows the average effective tax rate, which is what residents will actually pay, taking into account all exemptions.

Want to learn more about your mortgage payments? Check out our mortgage calculator.

Anchorage Property Taxes

The city of Anchorage is home to roughly half of Alaska’s total population. It also has one of the highest property taxes in the state. Without claiming any exemptions, homeowners in Anchorage would pay a property tax rate of 1.41%, which is well above the national average.

The good news is Anchorage offers its residents a number of significant property tax exemptions:

• The Senior Citizen Exemption is worth up to $150,000 of the assessed value and can be claimed by residents who are 65 years of age or older and who own and live in the home as their primary residence. Homeowners paying the mill rate of 15 mills and receiving the full exemption would save $2,250 annually.
• The Disabled Veteran Exemption is also worth up to $150,000 of assessed value. It can be claimed by disabled veterans or by Anchorage residents who are at least 60 years old and are the widow or widower of a disabled veteran.
• The Residential Exemption is equal to 20% of assessed value, up to a maximum of $50,000 per year. It can be claimed for owner-occupied, primary residences in Anchorage.

Other exemptions include the Military Service Widow/Widower Exemption and the Fire Protection Exemption. In total, these exemptions alleviate part of the property tax burden of Anchorage residents.

If you have questions about how property taxes can affect your overall financial plans, a financial advisor in Anchorage can help you out.

Fairbanks North Star

The Fairbanks North Star Borough, which contains the city of Fairbanks, has slightly lower property taxes on average than the city of Anchorage. The borough-wide average effective property tax rate in Fairbanks North Star is 1.47% and the typical homeowner in the borough pays $3,531 annually in property taxes.

Matanuska-Susitna

The Matanuska-Susitna Borough sits north of Anchorage and stretches all the way to Denali State Park. The average effective property tax rate in Matanuska-Susitna Borough is 1.31%, just lower than the state average.

Both the borough and several cities within the borough, including Palmer and Houston, levy property taxes.

Kenai Peninsula Borough

The Kenai Peninsula Borough sits on Alaska’s Cook Inlet, encompassing both the Kenai Peninsula and the land across the inlet. The Borough has significantly lower property taxes than Alaska’s other more populated boroughs.

The average effective property tax rate in the Kenai Peninsula Borough is just 0.70%, which is quite low. The typical annual real estate tax payment in the borough is $1,708.

Juneau City and Borough

Juneau is the capital city of Alaska, but it's only reachable by plane or boat. The city is hemmed in by the Coast Mountains, which limits the amount of space that's available.

The median home value in Juneau is $355,100, and the typical homeowner pays $3,492 annually in property taxes.