The Complete Alaska STR Lodging Tax Guide: Airbnb and VRBO Alaska Occupancy Tax Breakdown

Operating an Airbnb or short-term rental (STR) in Alaska offers exciting opportunities, but it also comes with specific tax obligations. As a host, understanding your tax obligations is crucial for running a compliant and profitable business. This guide breaks down the general lodging taxes applicable across Alaska and highlights specific tax rules in key cities and boroughs. We’ll also include example breakdowns to help you calculate your tax responsibilities.

State-Wide Tax Requirements for Alaska Airbnb Hosts

Aspiring Airbnb hosts and short-term rental owners in Alaska would be happy to hear Alaska is one of the few states that don’t impose a statewide sales or lodging tax on short-term rentals. This means that as long as your city or county doesn’t impose a specific lodging tax rate, you won’t need to collect any extra fees from your guests.

City-Specific Tax Requirements

Many cities and boroughs in Alaska levy bed taxes on short-term rentals. These taxes are typically a percentage of the total booking amount and are collected from guests. Hosts are responsible for remitting these taxes to the appropriate local authorities.

Anchorage

Anchorage collects a 12% room tax on short-term rentals (rentals of less than 30 days). It covers hotels, motels, bed and breakfasts, vacation rentals, and other similar accommodations.

Example: $100/night for 7 nights.

• Revenue: $100 per night for 7 nights = $700
• Room Tax (12%): $700 * 0.12 = $84
• Total Collected from Guest: $700 + $84 = $784
• Airbnb’s Fee: 3%(Split-Fee) of $700 = $21
• Host’s Net Revenue: $700 - $21 = $679

Juneau

Hosts in Juneau must collect a 5% sales tax and a 9% hotel-room tax, totaling 14% on the full price of the room rate. It’s also important to note that cleaning fees are only subject to the 5% sales tax but not the 9% hotel-room tax.

Example: $200/night for 3 nights with a $50 cleaning fee.

1. Room Revenue: $600
2. Total booking revenue (room + cleaning): $650
3. Sales tax (5%): $32.50 ($650 x 0.05)
4. Hotel room tax (9% on room revenue): $54 ($600 x 0.09)
5. Total taxes collected: $86.50
6. Total Charges: $736.50

Kodiak

The Kodiak Island Borough collects a 5% bed tax on all transient rentals for accommodations, which includes short-term rentals listed on Airbnb. These taxes are dedicated as a separate set of funds for the development of the borough’s tourism.

Example: $100/night for 2 nights.

1. Room Revenue: $200
2. Bed tax (5%): $10 ($200 x 0.05)
3. Total Revenue After Bed Tax: $190

Ketchikan

The City of Ketchikan has a more unique way of implementing taxes. They impose seasonal sales taxes that change, depending on the date. While this method definitely requires more computation, it also helps hosts and guests save a bit on the taxes.

1. From April 1 – September 30: 8% (City Tax 5.5% + Borough Tax 2.5%)
2. From October 1 – March 31: 5.5% (City Tax 3% + Borough Tax 2.5%).

Example: $180/night for a 4-night stay during the Summer (April 1 – September 30)

1. Room Revenue: $720
2. City Tax (5.5%): $39.60 ($720 x 0.055)
3. Borough tax (2.5%): $18 ($720 x 0.025)
4. Total Sales tax (8%): $57.60

Wrapping Things Up

By understanding and complying with these tax obligations, you’ll be well-positioned to operate a successful and legally compliant short-term rental business in Alaska. Remember that tax laws can change, so staying informed through local tax authorities and professional tax advice is always recommended.

For the most current information on short-term rental taxes and licensing requirements, visit the official Alaska Department of Revenue – Tax Division page.