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Overall Rating: 78/100 · 61,500 veterans (9% of population)
Reviewed 2026. Programs and exemptions verified against Alaska veterans-affairs and tax-authority sources.
Benefit details verified January 2025. Tax exemptions, caps, and eligibility change and can vary by county — always confirm current figures with your county assessor and your Alaska Department of Veterans Affairs before you rely on them.
Alaska has no state income tax. Military retirement pay, VA disability compensation, civilian employment income, investment income, and pension income are all free from state taxation.
0.0109% average effective rate
First $150,000 of assessed value (50%+)
50%+ ratings exempt the first $150,000 of assessed value (same 50–100%). Some boroughs add more.
Source ↗No statewide sales tax. Local municipalities charge 0-7.5% sales tax with no veteran exemptions. Anchorage and Fairbanks have 0% local sales tax.
$108,900
VA Medical Center
1201 North Muldoon Road, Anchorage, AK 99504
(907) 257-4700
Primary care, mental health, specialty care, surgery (outpatient), audiology, optometry, physical therapy, radiology/imaging, laboratory, pharmacy, prosthetics, women's health, PTSD treatment, substance abuse, telehealth
Community-Based Outpatient Clinic
2555 Phillips Field Road, Fairbanks, AK 99709
(907) 257-4700
Primary care, mental health, laboratory, telehealth
State Tuition Waiver
Active members of Alaska National Guard enrolled at University of Alaska schools (UAA, UAF, UAS) for undergraduate or graduate programs
4-year value: $28,600
Median Home
$420,000
1BR Rent
$1,400/mo
COL Index
122.8
Unemployment
4.5%
Major employers: Joint Base Elmendorf-Richardson (8,000+ military), ConocoPhillips Alaska, Providence Alaska Medical Center
Pros: Largest veteran community in Alaska (25,000+), best job market, VA medical center, urban amenities with wilderness access
Cons: Highest housing costs in Alaska ($420K median), high cost of living (23% above national average), long dark winters
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$0 down, no PMI. Funding fee waived for service-connected veterans.
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Alaska grants veterans' preference in state hiring: 5% of total available points added for veterans and National Guard members, and 10% for disabled veterans and former prisoners of war when a numerical rating system is used. Applicants must meet the position's minimum qualifications to receive the preference.
Official source ↗Resident veterans who meet Alaska's residency definition and are certified 50% or more service-connected disabled qualify for a free permanent identification card to hunt, sport fish, or trap. Card holders are also exempt from the king salmon stamp and state waterfowl conservation stamp requirements.
Official source ↗Veterans certified by the VA with a combined service-connected disability of 50% or more may obtain a disabled veteran plate at no cost, and one vehicle bearing that plate is exempt from motor vehicle registration taxes and registration fees.
Official source ↗Alaska adds an optional veteran designation to a driver license or state ID at no additional fee; the only cost is a duplicate license (if requested before renewal) or the standard renewal fee at renewal time. Purple Heart, POW, Pearl Harbor Survivor, and Gold Star Family plates are issued free with proof of eligibility.
Official source ↗State-run assisted-living home in Palmer with 79 beds, 75% of which are reserved for veterans. Eligibility requires being age 65 or older, a continuous Alaska resident for more than one year immediately before applying, and in need of residence due to physical disability or other reasons; monthly fees are based on ability to pay.
Official source ↗Alaska's property tax exemption for veterans rated 50% or more service-connected disabled can transfer to a surviving spouse who is at least 60 years old. The exemption amount, application process, and transfer rules are set by the municipality where the property is located.
Official source ↗Under Alaska Statute 14.43.085, the spouse or dependent of a service member who died in the line of duty (or from line-of-duty injuries) or who is listed as a POW/MIA receives a full waiver of undergraduate tuition and fees at state-supported institutions.
Official source ↗Sourced from official state agencies; programs and eligibility change — confirm with your Alaska Department of Veterans Affairs before applying.