Alaska Property Taxes by Borough: What Homeowners Pay

Alaska is one of the few states with no state income tax and no state sales tax, but property taxes are alive and well — and they vary dramatically depending on where you live. Whether you’re buying your first home or evaluating where to invest in real estate, understanding Alaska’s property tax landscape is essential.

This guide breaks down how property taxes work in Alaska, compares rates across boroughs and census areas, and covers exemptions that could save you money.

How Alaska Property Taxes Work

Alaska doesn’t have a statewide property tax. Instead, property taxes are levied at the local level — by organized boroughs, cities, and some service areas. This means your property tax rate depends entirely on your location.

The tax rate is expressed as a mill rate (mills per dollar of assessed value). One mill equals $1 per $1,000 of assessed value.

Property tax formula:

Assessed Value × Mill Rate ÷ 1,000 = Annual Property Tax

Example: A home assessed at $350,000 in a borough with a 12-mill rate would pay:

$350,000 × 12 ÷ 1,000 = $4,200 per year

Assessment vs. Market Value

Alaska boroughs assess property at varying percentages of market value. Most organized boroughs assess at full market value (100%), but assessment practices can vary. If you believe your assessed value is too high, you typically have the right to appeal through your borough’s assessment review process.

Property Tax Rates by Borough

Here’s a comparison of approximate residential property tax mill rates across Alaska’s organized boroughs. Rates shown include borough and any city levies where applicable:

Borough/Area	Approximate Mill Rate	Notes
Anchorage Municipality	18-21 mills	Includes city + borough (unified municipality)
Fairbanks North Star Borough	17-20 mills	Varies by service area; city of Fairbanks adds city levy
Juneau City and Borough	10-12 mills	Unified municipality
Kenai Peninsula Borough	8-12 mills	Lower base rate; city levies vary (Kenai, Soldotna, Homer, Seward)
Matanuska-Susitna Borough	11-14 mills	Growing area; rates vary by service district
Kodiak Island Borough	11-13 mills	Includes school and service area levies
Ketchikan Gateway Borough	14-17 mills	City of Ketchikan adds additional levy
Sitka City and Borough	10-12 mills	Unified municipality
Haines Borough	7-10 mills	One of the lower rates in organized boroughs
Denali Borough	3-5 mills	Minimal services, very low rate
Bristol Bay Borough	15-20 mills	Small tax base, essential services funding
Yakutat City and Borough	8-10 mills	Small community

Mill rates are approximate and subject to annual adjustment. Contact your borough assessor for current rates.

Key insight: Boroughs with more services (schools, roads, fire, utilities) generally have higher mill rates. Less-organized or rural areas with fewer services tend to have lower tax rates — but also fewer infrastructure amenities.

Areas with No Property Tax

One of Alaska’s unique features is that large portions of the state have no organized borough government and therefore no property tax. These are called the “unorganized borough” — a vast area covering much of rural Alaska.

Communities in the unorganized borough include many villages in western, northern, and interior Alaska. If you own property in these areas, you typically don’t pay property taxes. However, you also receive fewer government-funded services.

Some regions that generally fall in the unorganized borough (and may have no property tax):

• Much of the Yukon-Kuskokwim Delta
• The North Slope (outside the North Slope Borough)
• Large portions of interior Alaska
• Remote western Alaska communities

The tradeoff is real: no property taxes but also limited or no road maintenance, water/sewer infrastructure, local fire protection, or borough-funded schools.

How Property Taxes Compare Across Popular Alaska Cities

For homebuyers evaluating specific communities, here’s an estimated annual property tax comparison based on a $400,000 home:

City/Area	Est. Mill Rate	Annual Tax on $400K Home
Anchorage	~19 mills	~$7,600
Eagle River	~19 mills	~$7,600
Fairbanks (in city)	~19 mills	~$7,600
North Pole (FNSB)	~17 mills	~$6,800
Wasilla	~13 mills	~$5,200
Palmer	~13 mills	~$5,200
Juneau	~11 mills	~$4,400
Kodiak	~12 mills	~$4,800
Homer	~10 mills	~$4,000
Soldotna	~10 mills	~$4,000
Kenai	~11 mills	~$4,400
Sitka	~11 mills	~$4,400
Ketchikan	~16 mills	~$6,400
Haines	~8 mills	~$3,200

These are estimates for illustration. Actual taxes depend on assessed value, applicable service area levies, and current year mill rates.

The difference is significant. The same $400,000 home could cost you $7,600/year in Anchorage but only $3,200 in Haines — a $4,400 annual difference that adds up over the life of homeownership.

Property Tax Exemptions in Alaska

Several exemptions can reduce your property tax burden. Eligibility varies by borough, so check with your local assessor’s office.

Senior/Disabled Veteran Exemption

Alaska state law provides a property tax exemption for:

• Residents 65 and older — Exemption on the first $150,000 of assessed value (amount may vary)
• Disabled veterans — Full or partial exemption depending on disability rating

This exemption can save senior homeowners thousands per year. For a home assessed at $400,000 in Anchorage with a $150,000 exemption:

($400,000 - $150,000) × 19 ÷ 1,000 = $4,750 instead of $7,600 — a savings of $2,850/year

Residential Exemption

Some boroughs offer a general residential exemption — a set dollar amount excluded from taxation for owner-occupied homes. The Matanuska-Susitna Borough and Kenai Peninsula Borough have offered versions of this.

Nonprofit and Religious Exemptions

Properties owned and used by qualifying nonprofits, churches, and government entities may be fully exempt from property taxes.

Hardship Exemptions

Some boroughs offer hardship or deferral programs for homeowners who can’t afford their tax bills due to income limitations. Terms vary by jurisdiction.

How Property Taxes Affect Your Mortgage Payment

Property taxes directly impact your monthly mortgage payment. Most lenders require taxes to be escrowed — meaning your monthly payment includes:

• Principal
• Interest
• Property taxes (1/12 of annual amount)
• Homeowner’s insurance

This is often called PITI. When you’re getting pre-approved, the lender factors your expected property taxes into your debt-to-income ratio.

Impact example:

Annual Property Tax	Monthly Escrow Addition
$3,200 (Haines)	$267/month
$5,200 (Wasilla)	$433/month
$7,600 (Anchorage)	$633/month

That $366/month difference between Haines and Anchorage translates to significant purchasing power. Lower property taxes in some communities effectively let you qualify for a higher-priced home.

Property Tax Trends in Alaska

Several trends are shaping Alaska’s property tax landscape:

Rising Assessments

As home values increase across Alaska — particularly in the Mat-Su Valley, Anchorage, and Juneau — assessed values rise proportionally, increasing tax bills even if mill rates stay flat.

Service Area Expansion

Growing communities like Wasilla and Palmer are expanding road, fire, and water service areas, which can introduce new levies for previously lower-tax properties.

Revenue Pressure

Without state income or sales tax, Alaska’s boroughs rely heavily on property taxes to fund schools, roads, police, fire, and other essential services. Budget pressures may push mill rates upward in some jurisdictions.

Homeowner Advocacy

Residents can attend borough assembly meetings and participate in budget discussions that ultimately determine mill rates. Engaged communities have successfully pushed back on tax increases.

Tips for Managing Property Taxes in Alaska

1. Verify your assessment — Review your property assessment annually and appeal if it seems too high
2. Apply for exemptions — Don’t leave money on the table if you qualify for senior, veteran, or residential exemptions
3. Factor taxes into your home search — The same budget buys different homes in different boroughs
4. Plan for increases — Budget for potential assessment increases, especially in appreciating markets
5. Compare total cost of living — Low taxes may come with fewer services; high taxes may include amenities you value

For a complete picture of Alaska’s housing costs, see our cost of living and housing guide.

How Premier Mortgage Can Help

When you’re buying a home in Alaska, understanding the full monthly cost — including property taxes — matters. Premier Mortgage (NMLS: 1168048) helps Alaska buyers factor property taxes into their loan qualification and budget planning across every borough.

Get Pre-Approved

Frequently Asked Questions

Does Alaska have property taxes?

Yes, but only in organized boroughs and cities. Alaska has no statewide property tax. If your property is in the unorganized borough (large portions of rural Alaska), you may not pay property taxes at all. In organized boroughs, mill rates typically range from 3 to 21 mills.

Which Alaska borough has the lowest property taxes?

Among organized boroughs, the Denali Borough consistently has some of the lowest property tax rates in the state, typically around 3-5 mills. Haines Borough and some Kenai Peninsula areas also have relatively low rates. The absolute lowest taxes are in the unorganized borough, where no property taxes are levied.

Can I appeal my property tax assessment in Alaska?

Yes, all organized boroughs have an assessment appeal process. You typically need to file an appeal within 30 days of receiving your assessment notice. The board of equalization reviews your case and can adjust the assessed value if you provide evidence (comparable sales, property condition issues, etc.).

How do Alaska property taxes compare to other states?

Alaska’s property tax rates are moderate compared to the national average. However, because Alaska has no state income tax and no state sales tax, property taxes carry more weight in funding local government services. The effective property tax rate (taxes paid relative to home value) is roughly in line with the national median.

Do property taxes go into escrow with my mortgage?

In most cases, yes. Lenders typically require property taxes to be escrowed as part of your monthly mortgage payment. The lender holds the funds and pays the borough on your behalf. This ensures taxes are paid on time and protects the lender’s interest in the property.