Alaska Corporate Tax Exemption
Qualifying for Corporate Tax Exemption in Alaska
Whether or not your nonprofit corporation is eligible for corporate tax exemption in Alaska depends on its federal tax status. If your nonprofit corporation was formed in the state of Alaska, you’ll be able to avoid paying state corporate taxes if your nonprofit corporation has already been granted federal tax-exempt status (typically 501c3 status) from the IRS. For information on applying for federal tax-exempt status, see the links to our federal tax exemption guides at the bottom of this page, as well as the following list of Alaska tax exemption frequently asked questions.
Applying for Corporate Tax Exemption in Alaska FAQ
If I’ve been granted 501c3 status do I have to fill out any other forms to avoid Alaska’s corporate tax?
Alaska doesn’t require federally tax-exempt corporations to fill out any other forms to avoid the state corporate tax. If you want to be overly cautious at tax time, you could simply attach a copy of your federal return to your state tax return.
Are there any other tax exemptions available for nonprofit corporations in Alaska?
As a state, Alaska doesn’t charge sales tax, but some of its municipalities do. This may serve as guidance as to where you’ll want to incorporate your Alaska nonprofit organization. See chart below for the local sales tax rates in AK’s five biggest cities:
|AK City||Local Sales Tax Rate|
|Juneau||5% (Oct – Mar), 6% (Apr – Sept)|
Also, you may be able to avoid paying property taxes, but the owned property has to be used for exclusively charitable, religious, or educational purposes.
How can my nonprofit corporation apply for property tax exemption in Alaska?
In order to receive property tax exemption, contact your local county tax assessor’s office and apply there, as the final determination will be made by the municipality in which your property resides.
Where can I get more information about Alaska corporate taxes?
Below, you’ll find the mailing address, website, and contact information for the Alaska Department of Revenue’s Tax Division. Or simply visit our Alaska Department of Revenue, Alaska Tax page to learn more.
Alaska Department of Revenue
333 W Willoughby Ave 11 Fl Side B
PO Box 110420
Juneau Ak 99811-0420
Voice: (907) 465-2320
Fax: (907) 465-2375
Federal Tax-Exemption Guides
This comprehensive guide to obtaining and maintaining 501c3 status from the IRS includes information on how to prepare your nonprofit to apply for 501c3 status, as well as information about the forms and fees required by the IRS.
This guide overviews and includes the special tax-exempt language a 501c3 nonprofit organization must include as part of its articles of incorporation.