Alaska Short Term Rental Laws: AirBnB & Vacation Rental Regulations

In recent years, Alaska has drawn the attention of short-term rental investors thanks to its breathtaking landscapes, world-class fishing and hunting, famous Northern Lights, and unique cultural heritage. Whether you’re drawn to Anchorage’s urban appeal or the remote charm of smaller towns like Sitka or Ketchikan, there is strong demand for vacation rental properties across the state. 

However, before buying a property to list on Airbnb, Vrbo, or any other platform, it’s crucial to understand the short-term rental laws in Alaska—both at the state and local levels. While Alaska does not have significant statewide regulations for vacation rentals, several municipalities have enacted their own lodging taxes and specific permitting requirements. In this article, we’ll provide an overview of the basic state-level considerations and look at the regulations in a few major Alaskan cities, helping you decide if and where to start or expand your short-term rental business.

Alaska’s Definition of a Short-Term Rental

Unlike some states that define short-term rentals as stays under 30 or 90 days, Alaska does not have a single overarching definition of “short-term rental” in its statutes. Instead, the relevant rules typically revolve around tax regulations for lodging. Many local governments apply their own time thresholds and tax policies for transient accommodations. For example, a city or borough might treat any stay under 30 days as a short-term rental for tax purposes, but this can vary from one municipality to another. Because of this local variation, it’s vital to confirm the specific rules in the area where your property is located.

At the state level, there is no special requirement to register a vacation rental business purely as a short-term rental. However, owners are still obligated to comply with general business regulations, which may include collecting and remitting any applicable taxes if not handled by the booking platform.

Starting a Short-Term Rental Business in Alaska

In general, starting an Airbnb in Alaska does not require a state-level short-term rental license or permit. Instead, you may need to register your business with the State of Alaska if you intend to operate under a business entity, such as an LLC. Additionally, you should determine whether your local jurisdiction requires any form of general business license.

When it comes to collecting lodging taxes, there are a few scenarios. If you rent your property through a platform (e.g., Airbnb) that automatically collects and remits local taxes, you might not have to file separately with the local government. On the other hand, if no platform remits taxes on your behalf, you will likely need to register and file lodging taxes directly with the relevant municipality or borough. The state also imposes general sales tax requirements in certain parts of Alaska, though many areas of the state do not charge sales tax at all. Confirm the details with your borough or city clerk’s office to ensure you’re in compliance.

Short-Term Rental Licensing Requirement in Alaska

Currently, Alaska does not have a dedicated short-term rental license at the state level. Most of the licensing or permitting regulations that do exist are found at the municipal level. This means your primary responsibility is to check with the local government where your property is located to determine if a city or borough requires a business license or rental permit.

In larger jurisdictions—especially those with strong tourism traffic—some extra steps might be involved, such as property inspections to ensure compliance with safety requirements. However, these rules are not uniform across Alaska. For example, more remote areas or places with smaller populations may have few (if any) regulations specific to short-term rentals. As an investor, the best approach is to verify local ordinances and verify that you’re aware of all required documents and fees.

Alaska Short-Term Rental Taxes

Hosts in Alaska typically encounter at least one of the following types of taxes:

• Borough or City-Level Lodging Tax: Many Alaskan municipalities impose a lodging tax on stays considered “transient,” usually under a 30-day threshold. Rates can range from around 4% to 12%, depending on the location.
• Sales Tax: Parts of Alaska have no sales tax at all, while certain boroughs impose one. In these areas, short-term rental hosts may need to collect and remit a local sales tax on top of the lodging tax.
• Special Fees or Tourism Assessments: Some communities, particularly in popular tourist destinations, have additional taxes or fees on nightly rentals to support local infrastructure.

You should file and pay lodging taxes on the schedule set by your local government, which can be monthly, quarterly, or annually. In some cases, the booking platform handles tax collection. Always confirm whether it’s your responsibility to register and file, or if the platform handles it on your behalf.

Vacation Rental Tax Deductions

Even though Alaska might not have as many state-level regulations as other places, investors should not forget about federal tax considerations. If you rent out your Alaska property for more than 14 days per year and your personal use does not exceed 14 days, you may qualify to deduct a variety of expenses related to the property on your federal return. These potential deductions include mortgage interest, property taxes, insurance, depreciation, utilities, cleaning services, maintenance, and professional service fees. By accurately tracking and reporting all allowable deductions, you can improve your bottom line as an investor.

Short-Term Rental Regulations by Major Locations in Alaska

1. Anchorage, Alaska

Anchorage, the largest city in the state, does not currently have a specific short-term rental ordinance. However, it does require short-term rental hosts to collect a 12% room tax from guests. If you operate independently of a platform that automatically remits taxes, you must register with the Municipality of Anchorage Treasury to file and pay this tax. Anchorage generally treats any stay under 30 days as transient lodging. Business owners in Anchorage may also need to obtain a general municipal business license, depending on projected revenue.

2. Juneau, Alaska

Juneau enforces a 9% hotel-motel room tax (which also applies to short-term rentals) on top of the 5% city sales tax, making the total tax rate 14% for most stays under 30 days. Property owners renting a room or entire home to guests should register with the City and Borough of Juneau and file taxes by the monthly or quarterly due dates. Beyond tax obligations, Juneau does not have a specialized short-term rental licensing process, but it does apply the same building safety and zoning codes to Airbnb and traditional lodging providers.

3. Fairbanks, Alaska

In Fairbanks, short-term rental hosts in the Fairbanks North Star Borough typically pay a bed tax, currently around 8%. If guests book through a platform that does not collect the tax, hosts must register and remit it themselves. Regulations here remain relatively lenient, and there are no specific zoning restrictions aimed at short-term rentals. However, the City of Fairbanks may require a local business license if your short-term rental income passes certain thresholds.

4. Sitka, Alaska

Sitka imposes a 6% bed tax for stays under 30 days, along with a 6% sales tax for a total of 12%. Property owners listing their homes on Airbnb or similar platforms should confirm if the platform automatically collects and remits the taxes on their behalf. While Sitka does not have a dedicated short-term rental permit, owners must comply with general safety and property standards enforced by the city.

5. Ketchikan, Alaska

Ketchikan has one of the higher local sales tax rates in Alaska, ranging around 6.5%, plus a transient occupancy tax of 7%. Together, short-term rental guests could pay over 13% in combined taxes. The city does not require an exclusive Airbnb license, but it does expect property owners to register for tax purposes if the platform does not handle filing. As with other Alaskan locations, check any HOA or condo association rules if applicable, as these can be stricter than city regulations.

Because Alaska does not have a one-size-fits-all set of short-term rental rules, it’s essential to investigate each borough or city where you plan to list your property. Some areas might have special lodging taxes, while others may require unique safety inspections or limit the number of nights you can rent per year.

Takeaway

Alaska’s natural wonders and steady stream of adventure-seeking tourists make it a compelling market for short-term rental investors. The state’s lack of comprehensive short-term rental regulations means that most hosting requirements and lodging taxes are determined at the local level. Consequently, property owners should always research the local bed taxes, licensing regulations, and zoning laws in their target market. By doing so, you can avoid fines, stay compliant with all relevant rules, and take advantage of Alaska’s booming tourism industry.

If you’re considering transforming a property into a short-term rental in Alaska, make sure to stay up to date on any changes in municipal codes and tax regulations. Some cities may introduce new rules to address tourism growth, and it’s best to be prepared before investing in a vacation rental property. With thorough local research and proper tax management, owning and operating an Airbnb in the Last Frontier can be both a lucrative and rewarding endeavor.