Living in Alaska? Well, there’s good news for you too. The Last Frontier doesn’t tax unemployment benefits either. In fact, there is virtually no state income tax; and things are just getting better. Alaska is actually one of the five U.S. states that don’t impose sales taxes.
However, you have to consider that localities can change that. They can add a levy of as much as 7.5 percent. All in all, the Last Frontier’s average sales tax due to localities is just 1.76 percent, so it shouldn’t be discouraging at all. Just ask Tennessee residents how they feel about the state sales taxes, and you’ll definitely say that you’re a happy Alaskan.
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