Welcome to FindLaw's section on Alaska's tax laws. Taxes pay for the types of shared resources that individuals cannot procure on their own, such as highways, police departments, fire departments, schools, and public parks. Each state has its own way of levying and collecting taxes, but Alaska is quite unique. In fact, Alaska is the only state in the union which collects neither sales tax nor personal income tax. Instead, Alaska pays for state expenses through oil revenue; but some municipalities do collect local taxes. Meanwhile, goods such as liquor and tobacco are taxed by the state. Click on a link below to learn more about Alaska's tax laws.