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Alaska Vehicle Sales Tax & Fees

Alaska State Sales Tax

Alaska State Sales Tax

When it comes to purchasing a vehicle, you need to know all the costs associated with it. That includes the state sales tax that is required in your state. While some states have no state sales tax, others require that you pay a tax to the state DMV when you purchase a vehicle.

Here, we will discuss the Alaska state sales tax and everything you need to know when paying that tax when purchasing a vehicle.

How Much Is the Car Sales Tax in Alaska?

Currently, Alaska is one of five states that does not have a state sales tax. The other states include Delaware, Montana, New Hampshire, and Oregon.

That means that you don’t have to pay any taxes when you purchase a vehicle in the state of Alaska.

Do I Have to Pay Sales Tax on a Used Car?

You do not have to pay any state sales tax when you purchase a used car in Alaska.

Which City Has the Highest Tax? Which Has the Lowest?

Since there is no state sales tax, there is no city that charges a sales tax.

Car Sales Tax for Trade-Ins in Alaska

There is no state sales tax in Alaska. Therefore, your trade will not be taxed.

For instance, if you purchase a vehicle for $50,000 and your trade-in is worth $10,000, then the full purchase price of your vehicle will be $40,000 with no tax on the final purchase price.

Car Sales Tax for Private Sales in Alaska

Since there is no state sales tax, you do not have to worry about paying any taxes on your vehicle.

For instance, let’s say that you want to purchase a truck from a private owner for $25,000. The state sales tax would be $0.

Tax on Rebates & Dealer Incentives

There is currently no state sales tax in Alaska. Therefore, you don’t have to worry about paying any taxes on rebates and dealer incentives.

For example, let’s say that you purchase a new car from a dealer with a sticker price of $50,000. You receive $3,000 in rebates and dealer incentives. That $3,000 is not taxed along with the $50,000 purchase price of the vehicle.

Other Taxes & Fees for Alaska

While Alaska does not have a state sales tax, there are DMV and state fees that you have to be aware of. Here’s a look at the current DMV and state fees associated with vehicle sales;

Title

If you want to transfer a title from one owner to another or simply get a title for your vehicle, the cost will be $15. The fee can be paid in cash or with a personal check.

Registration

Cars are registered for two years in Alaska. The two-year registration fee is $100 for passenger vehicles, $60 for motorcycles, $30 for trailers, and $100 for a motorhome.

Along with the registration fee, there are registration taxes that are collected for each city. The city with the highest registration tax fee is Anchorage, with a $100 tax per two-year registration. You can use this calculator to find out your total two-year registration cost.

Dealership Fees

The average dealership documentation fee in Alaska is about $80. Documentation fees are associated with a dealer filing the paperwork with the Alaska DMV to legalize the deal.

Unlike other dealer fees, these documentation fees are usually not negotiable.

How to Calculate Alaska Sales Tax on a Car

Since you don’t have to pay sales tax on any vehicle sales in Alaska, no calculation is needed.

For example, if you purchase a new truck for $45,000, the state sales tax will be $0.

When Sales Tax is Exempt in Alaska

Since there is no sales tax in Alaska, there are no exemptions needed in this case.

EV Rebates & Incentives

Alaska offers several EV rebates and incentives to both private vehicle buyers as well as businesses. For example, if you purchase an EV vehicle as a resident, then you can get a $1,000 rebate. This includes electric motorcycles.

Businesses can get up to $5,000 rebates on EV vehicles and up to $15,000 in EV rebates per location.

Hotels can get up to $2,500 rebates on EV vehicles and up to $2,500 per location.

Fleet companies can get up to $1,500 rebates on EV vehicles and up to $3,000 per location.

Rental companies can get up to $1,500 rebates on EV vehicles and up to $3,000 per location.

Tax information and rates are subject to change, please be sure to verify with your local DMV. 

Frequently Asked Questions

What is the sales tax on cars purchased in Alaska?

Alaska is one of five states that does not have a state sales tax. This includes no state sales tax on the purchase of any vehicle.

Do I have to pay sales tax on a used car in Alaska?

Since there is no state sales tax in Alaska, you don’t have to pay any state sales tax when purchasing a new or a used vehicle.

Which city in Alaska has the lowest tax? Which has the highest?

Since there is no state sales tax, there is no additional city sales tax. However, there are registration taxes that may vary by city.

Do I have to pay sales tax on a gifted car in Alaska?

Since there is no state sales tax, there is no need to pay state taxes on a gifted car from one party to another.

How much is registration in Alaska?

The exact cost of the registration of a vehicle will vary by the type of vehicle and whether the vehicle is going to be used for commercial or non-commercial use. For instance, if you are registering a vehicle for non-commercial use, then the two-year registration cost will be $100. On the other hand, if you are registering a motorcycle for non-commercial use, then the two-year registration cost will be $60.

Does a trade-in reduce sales tax in Alaska?

Since there is no state sales tax in Alaska, you do not have to worry about whether a trade-in will reduce the state sales tax.

How can I avoid paying sales tax in Alaska?

Since there is no state sales tax in Alaska, there is no need to avoid paying sales tax in Alaska.