Aircraft tax · United States

Alaska aircraft sales and use tax

Alaska has no state sales or use tax, but many cities and boroughs levy their own sales tax and decide what it covers, so the answer depends on where the aircraft is bought, based, rented or repaired. No state aircraft registration fee was found in force.

Every answer below quotes the state's own source. Last checked October 18, 2026. Estimate the tax on your aircraft

Do you pay sales tax on an aircraft bought in Alaska?

Depends. No state sales tax. Several cities and boroughs levy their own sales tax and decide locally what is taxable, so a local tax can apply depending on where the sale takes place.

The State of Alaska does NOT levy a sales tax.
Alaska Department of Commerce, Community, and Economic Development, Office of the State Assessor, Alaska Sales Tax Information · checked October 18, 2026
Several local municipalities within the state do levy a sales tax.
Alaska Department of Commerce, Community, and Economic Development, Office of the State Assessor, Alaska Sales Tax Information · checked October 18, 2026
The state constitution and other state laws give very broad authority to cities and boroughs in enacting a sales tax ordinance and determining what is taxable.
Alaska Department of Commerce, Community, and Economic Development, Office of the State Assessor, Alaska Sales Tax Information · checked October 18, 2026

Do you owe use tax on an aircraft bought outside Alaska?

Depends. No state use tax. A city or borough that levies a sales tax may also levy a use tax on goods stored or used there; sales tax already paid is credited, and only any difference is owed.

The State of Alaska does NOT levy a sales tax.
Alaska Department of Commerce, Community, and Economic Development, Office of the State Assessor, Alaska Sales Tax Information · checked October 18, 2026
State law also allows municipalities that levy a sales tax to levy a use tax, which is a tax levied on the storage, use, or consumption of goods in a municipality.
Alaska Department of Commerce, Community, and Economic Development, Office of the State Assessor, Alaska Sales Tax Information · checked October 18, 2026
State law requires that if you furnish proof to the municipality that you have paid a sales tax on the item, you will only have to pay for the difference in the amount of the sales tax paid and the use tax, if there is a difference.
Alaska Department of Commerce, Community, and Economic Development, Office of the State Assessor, Alaska Sales Tax Information · checked October 18, 2026

What aircraft sales tax exemptions does Alaska have?

Not clearly published. With no state sales tax there is no state exemption to plan around. Exemptions from local sales taxes are set by each city or borough, and the state does not publish them for aircraft.

There are some exemptions spelled out in state law; however, other than these, exemptions are a local issue.
Alaska Department of Commerce, Community, and Economic Development, Office of the State Assessor, Alaska Sales Tax Information · checked October 18, 2026

Are aircraft rentals taxed in Alaska?

Depends. No state tax on aircraft rentals. Whether a local sales tax applies to a rental depends on the city or borough's own ordinance.

The State of Alaska does NOT levy a sales tax.
Alaska Department of Commerce, Community, and Economic Development, Office of the State Assessor, Alaska Sales Tax Information · checked October 18, 2026
The state constitution and other state laws give very broad authority to cities and boroughs in enacting a sales tax ordinance and determining what is taxable.
Alaska Department of Commerce, Community, and Economic Development, Office of the State Assessor, Alaska Sales Tax Information · checked October 18, 2026

Is flight instruction taxed in Alaska?

Depends. No state tax on flight instruction. Some local sales taxes reach services, so whether a lesson is taxed depends on the city or borough's own ordinance.

The State of Alaska does NOT levy a sales tax.
Alaska Department of Commerce, Community, and Economic Development, Office of the State Assessor, Alaska Sales Tax Information · checked October 18, 2026
The state constitution and other state laws give very broad authority to cities and boroughs in enacting a sales tax ordinance and determining what is taxable.
Alaska Department of Commerce, Community, and Economic Development, Office of the State Assessor, Alaska Sales Tax Information · checked October 18, 2026

Are aircraft parts and maintenance labor taxed in Alaska?

Depends. No state tax on parts or repair labor. Whether a local sales tax applies depends on the city or borough where the work is done.

The State of Alaska does NOT levy a sales tax.
Alaska Department of Commerce, Community, and Economic Development, Office of the State Assessor, Alaska Sales Tax Information · checked October 18, 2026
The state constitution and other state laws give very broad authority to cities and boroughs in enacting a sales tax ordinance and determining what is taxable.
Alaska Department of Commerce, Community, and Economic Development, Office of the State Assessor, Alaska Sales Tax Information · checked October 18, 2026

Does Alaska register or tax aircraft every year?

Not clearly published. No state aircraft registration fee was found in force. The Department of Transportation proposed aircraft registration and fees in 2017 and withdrew the proposal in 2018. Cities and boroughs can tax personal property, including by a flat tax per item, so a local aircraft tax depends on where the aircraft is based.

The Department of Transportation and Public Facilities is withdrawing for further consideration the currently proposed changes to the regulations published on November 1, 2017 and related to implementing aircraft registration and fees for aircraft based in Alaska, and addressing protests, appeals, and definitions.
Alaska Department of Transportation and Public Facilities, Aircraft Registration Regulations Project: Notice of Withdrawal · document dated April 2, 2018 · checked October 18, 2026
A municipality that levies a flat tax may classify the property as to type based on any characteristic and tax each item of property of the same type at a specific amount.
Alaska Statutes, AS 29.45.055(a) · checked October 18, 2026

AerScheduler can add sales tax, at the rates you set, to the invoices you raise for parts, labor and other charges, taxing only the lines your state taxes. How it works