About the Juneau Sales Tax Cap Increase
Juneau sales tax cap is adjusted every other year to align the maximum taxable amount per item or service with the Consumer Price Index for Urban Alaska.
Effective January 1, 2024, the maximum taxable value went from $12,800 to $14,300. Since Juneau has a sales tax of 5%, that means that the maximum per-item or service tax you can pay is $715.
The overall average state sales tax rate for Alaska is 1.82%, making it the lowest in the country.
Sales tax is a vital revenue source for the state, with 30.42% of all state tax revenue coming from sales tax (in contrast, 37.72% of state income comes from income tax).
The 5% sales tax rate includes a 1% temporary tax that the voters approved to help fund community projects. However, it is set to expire on September 30, 2028, necessitating a renewal vote in the fall 2027 election.
What Necessitates the Biannual Sales Tax Cap Change?
The City and Borough of Juneau evaluates the changes to the Consumer Price Index for Urban Alaska to determine the sales tax cap. That way, the tax rates are in line with the adjusting economy. Making changes ensures that the tax cap matches inflation to protect the state’s income needs.
What the Increased Juneau Sales Tax Cap Means for Tourists
Individuals visiting Juneau and planning to make high-ticket purchases will need to plan for the higher tax cap on the goods.
However, given that most purchases of a single item or single service do not reach that dollar value, many tourists will see minimal impact on their spending.
In fact, depending on where you’re traveling from, the 5% sales tax might feel minimal to you compared to what you pay at home for everyday items.
What Purchases Might Be Affected?
The most common purchases impacted by the change in the sales tax increase might include:
- Jewelry
- Art
- Electronics
- Some outdoor gear
Many everyday purchases will not see an impact because they won’t reach the maximum threshold. Some examples of non-impacted purchases include:
- Dining
- Most tour packages
- Clothes
- Souvenirs
Most tourists will not notice a change since the tax cap applies to a single item or single service. So even if you take the family on a luxury excursion where the price is $5,000 per person, you wouldn’t reach the tax cap because it’s based on a single service and the combined purchase price.
How Does Juneau’s Tax Compare to Other Alaska Tourist Towns
Because Alaska has no state sales tax, it is up to the cities and municipalities to set their local sales tax. Anchorage has no sales tax, making it an ideal place to make purchases. Project Anchorage aims to institute a temporary 3% sales tax to help fund capital projects and potentially reduce property taxes. However, it was put on pause in March 2025.
Fairbanks, Alaska, likewise has no sales tax on regular goods. However, it does have taxes on alcohol, marijuana, gasoline, room rentals and tobacco.
Ketchikan is unique in that it has a different sales tax rate during the tourist season of April 1 to September 30 than it does the rest of the year. The tourist season tax rate is 8% compared to 5.5% the rest of the year. The sales tax cap in Ketchikan is significantly lower than that of Juneau. On January 1, 2020, the sales tax cap changed from $1,000 to $2,000. So while Ketchikan has a lower tax cap, the tax rate is significantly higher during the tourist season, meaning travelers are more likely to notice the sales tax in the area than they would in Juneau.
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Tourist Budget Tips for Traveling to Juneau, Alaska
If you’re looking to manage your budget while traveling to Juneau, there are several steps you can take to minimize expenses. Here’s a look at some Juneau travel budgeting tips.
1. Visit in Late April/Early May or Late September/Early October
This timeframe is known as the shoulder season. It takes advantage of the time of year when tourist season is beginning to get started or waning, when flights and hotels are not in as high demand as they are from mid-May through mid-September. But it’s also a sweet point when businesses still have extended hours for the tourist season and when crowds should be lighter.
2. Look for Budget-friendly Accommodations
Consider what matters most to you about your accommodations. If you can stay a little outside the main tourist area of downtown, you can save some money. A good airport hotel is a wise choice for your hotel needs. Frontier Suites is a short walk from the airport and not far from downtown, allowing you to take advantage of lower prices while still staying in a safe, enjoyable area.
Another way to save money is to book your travel early. The earlier you book, the larger availability there will be, and thereby avoiding surge prices.
3. Use Free Shuttles and Public Transportation
Renting a car is expensive. Instead, try to get around using public transportation and the free airport shuttle available at Frontier Suites.
Capital Transit is the city bus that costs just $2 per ride. Additionally, when you book excursions, ask about whether they offer free shuttles to and from the tour site to help you reduce your transportation expenses. While you can take a taxi or rideshare, those expenses can add up.
4. Take Advantage of the Many Free or Low-Cost Attractions
One of the best things to do in Juneau is to enjoy the incredible natural wonders. You can visit Mendenhall Glacier for free. Or take a low-cost tour or pay a small fee to see the exhibits.
Another free attraction is the many hiking trails in the area. Just be sure to only take on the trails that match your skillset, as you don’t want to find yourself in an area with terrain you can’t handle.
5. Make Your Own Food
Visit the grocery store upon arrival and make your own food to lower your expenses. Frontier Suites offers guests a full kitchen in every room to make cooking meals simple.
Or if you need to eat a meal away from your hotel, consider budget-friendly eats, such as Heritage Coffee, Deckhand Dave’s or Pel’meni. All these restaurant options have high ratings for quality food at a lower price.
6. Shop Smart
Alaska offers unique souvenirs, home décor and outdoor equipment. But the price of such goods can add up quickly. Set a budget before you leave, and be very picky about what you purchase and where. Try to go deeper into downtown, away from the cruise docks to make your purchases as the souvenirs will cost less the further from the cruise ships you get.
Book Your Stay at Frontier Suites
The earlier you book your stay at Frontier Suites, the more room options you’ll have and the lower per-night rate you’ll likely pay. Book your stay now for an enjoyable airport hotel.
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