Alaska offers a vibrant environment for business with over 75,000 small businesses, employing more than 50% of the state’s workforce. Whether you’re an established business owner or planning to start a new venture, understanding the tax landscape in Alaska is crucial. This guide provides a comprehensive overview of the various taxes small businesses in Alaska must navigate, including tax rates, filing requirements, and deadlines.
Types of Business Taxes in Alaska
Business owners in Alaska may be subject to various taxes depending on their business structure, activities, and revenue. Here’s a breakdown of the main types of taxes:
Corporate Income Tax
Employment Security Tax (unemployment)
Personal Property Tax
Applicable Entities: Businesses using personal property
Tax Rate: Based on property type and value
Filing Requirements: Report annually to the county assessor by November 30 (where applicable).
How to File and Pay Alaska Business Taxes
Business taxes in Alaska can be filed and paid through various methods:
Online Filing and Payment: Use Alaska Revenue Online for electronic submissions and payments.
Mail: Send forms and payments to the address indicated (where allowed).
Important Deadlines
Keep track of these key dates to avoid penalties:
Corporate Income Tax Returns: Due 30 days after the federal tax return is due.
Estimated Tax Payments: Due quarterly on April 15, June 15, September 15, and December 15.
Unemployment Insurance Reports: Due quarterly by April 30, July 31, October 31, and January 31.
Tax Credits and Incentives
Alaska offers several tax credits and incentives for small businesses, including:
Alaska Education Tax Credit: Businesses receive a credit for 50% of their charitable donations of cash or equipment for direct instruction, educational support, facilities, or research. The credit is subject to a $1 million cap for donations made before June 27, 2024, and a $3 million cap made for donations on or after that day.
Alaska Veteran Employment Tax Credit: Businesses that employ an eligible veteran for 1,560 hours or more during the 12 consecutive months after hiring receive a $3,000 credit for a disabled veteran and a $2,000 credit for a non-disabled veteran. Employers receive a $1,000 credit for employing a veteran for an eligible seasonal position.
Note: Alaska taxpayers can claim 18% of all federal incentive credits, except federal credits that refund other federal taxes. Multistate taxpayers apportion their total federal incentive credits.
Alaska’s business tax breakdown by business type
Business taxes can get complicated, so we’ve included a chart that breaks down which taxes different business structures usually pay.
Remember that pass-through entities don’t pay federal income taxes themselves—the obligation is passed on to their business owners or shareholders, who pay them through their personal income tax returns.
Business type | Personal income tax | Corporate income tax | Unemployment tax | Federal income taxes |
C corporation | No | Yes | Yes, if you hire employees | Yes |
S corporation | No | No | Yes, if you hire employees | Yes (pass-through) |
LLC | No | Depends on how it’s structured | Yes, if you hire employees | Yes (pass-through) |
Partnership | No | No | Yes, if you hire employees | Yes (pass-through) |
Sole proprietorship | No | No | Yes, if you hire employees | Yes, by way of individual income tax |
File your Alaska small business taxes with Gusto
As a business owner, your time and energy are valuable, finite resources. So instead of managing your taxes manually, let Gusto give you a hand. Our easy-to-use software automatically files all your payroll taxes each time you run payroll—freeing up your bandwidth for the work that matters most.
Learn how else Gusto can simplify the operations of your small business by creating an account today.
Alaska Small Business Taxes: The Employer’s 2024 Guide
Alaska offers a vibrant environment for business with nearly 75,000 small businesses, employing more than 50% of the state’s workforce. Whether you’re an established business owner or planning to start a new venture, understanding the tax landscape in Alaska is crucial. This guide provides a comprehensive overview of the various taxes small businesses in Alaska must navigate, including tax rates, filing requirements, and deadlines.
Types of Business Taxes in Alaska
Business owners in Alaska may be subject to various taxes depending on their business structure, activities, and revenue. Here’s a breakdown of the main types of taxes:
Corporate Income Tax
Employment Security Tax (unemployment)
Personal Property Tax
Applicable Entities: Businesses using personal property
Tax Rate: Based on property type and value
Filing Requirements: Report annually to the county assessor by November 30 (where applicable).
How to File and Pay Alaska Business Taxes
Business taxes in Alaska can be filed and paid through various methods:
Online Filing and Payment: Use Alaska Revenue Online for electronic submissions and payments.
Mail: Send forms and payments to the address indicated (where allowed).
Important Deadlines
Keep track of these key dates to avoid penalties:
Corporate Income Tax Returns: Due 30 days after the federal tax return is due
Estimated Tax Payments: Due quarterly on April 15, June 15, September 15, and December 15.
Unemployment Insurance Reports: Due quarterly by April 30, July 31, October 31, and January 31.
Tax Credits and Incentives
Alaska offers several tax credits and incentives for small businesses, including:
Alaska Education Tax Credit: Businesses receive a credit for 50% of their charitable donations of cash or equipment for direct instruction, educational support, facilities, or research. The credit is subject to a $1 million cap for donations made before June 27, 2024, and a $3 million cap made for donations on or after that day.
Alaska Veteran Employment Tax Credit: Businesses that employ an eligible veteran for 1,560 hours or more during the 12 consecutive months after hiring receive a $3,000 credit for a disabled veteran and a $2,000 credit for a non-disabled veteran. Employers receive a $1,000 credit for employing a veteran for an eligible seasonal position.
Note: Alaska taxpayers can claim 18% of all federal incentive credits, except federal credits that refund other federal taxes. Multistate taxpayers apportion their total federal incentive credits.
Alaska’s business tax breakdown by business type
Business taxes can get complicated, so we’ve included a chart that breaks down which taxes different business structures usually pay.
Remember that pass-through entities don’t pay federal income taxes themselves—the obligation is passed on to their business owners or shareholders, who pay them through their personal income tax returns.
Business type | Personal income tax | Corporate income tax | Unemployment tax | Federal income taxes |
C corporation | No | Yes | Yes, if you hire employees | Yes |
S corporation | No | No | Yes, if you hire employees | Yes (pass-through) |
LLC | No | Depends on how it’s structured | Yes, if you hire employees | Yes (pass-through) |
Partnership | No | No | Yes, if you hire employees | Yes (pass-through) |
Sole proprietorship | No | No | Yes, if you hire employees | Yes, by way of individual income tax |
File your Alaska small business taxes with Gusto
As a business owner, your time and energy are valuable, finite resources. So instead of managing your taxes manually, let Gusto give you a hand. Our easy-to-use software automatically files all your payroll taxes each time you run payroll—freeing up your bandwidth for the work that matters most.
Learn how else Gusto can simplify the operations of your small business by creating an account today.
