Q. Willis would like to know, does Alaska have state income taxes? What about tax on personal property such as automobiles? Does Alaska tax real property? And what about auto insurance…is it cheaper than in Georgia or South Carolina?
A. At present, we do not have a state income tax, but you know that old saying, “the only two sure things are death and taxes!” Well, not for a long time on both, I say! We also have no tax on buying an automobile, as in other states – with this exception. Some communities have a sales tax, but it is very minimal. The local Ford dealer told me that in Anchorage, for instance, there is no sales tax. Here in the Matanuska Valley, we have a sales tax, but it is very minimal. Probably only amounting to $15. bucks or so on a car. I know our town, Wasilla, instituted a small sales tax for the specific purpose of creating a police department, which we were very happy to have, so we don’t mind the tax.
As to property taxes, just depends on where in Alaska you live. Lots of the smaller, outlying areas still have no real property tax. We do here in the Anchorage/Mat Valley area though.
Auto insurance runs a bit higher in Alaska than in the lower 48, especially the southern states, and since it is mandatory, you need to figure on a bit more for that. I know a good agent – State Farm – in Anchorage. Here is their number (907) 561-0000. Sure is an easy # to remember, eh? Take care, Bonnie J.