Taxes in Kenai

Kenai's tax picture combines Alaska's genuinely rare no-income-tax, no-statewide-sales-tax structure with a genuinely low local property tax rate.

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No state income tax, at all

Alaska levies no state individual income tax on wages, salaries, or investment income -- a real, current, unambiguous status applying in Kenai as statewide.

A genuinely low property tax rate

The Kenai Peninsula Borough's own cited 0.78% median effective property tax rate runs meaningfully below the 1.02% national median, producing a median tax bill of approximately $1,501/year on a $193,000 median home.

A 6.0% combined sales tax

Kenai's combined sales tax runs 6.0% (3% Kenai Peninsula Borough + 3% City of Kenai).

Key takeaways

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Last reviewed: 2026-08-28. Independent research; not financial, tax, or legal advice -- confirm current figures with a local professional before making a decision.