Taxes in Palmer
Palmer's tax picture combines Alaska's genuinely favorable statewide structure with a real, disclosed local sales tax increase and a favorable within-borough property tax rate.
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Learn moreAlaska's real, complete absence of state income tax
Alaska levies no state individual income tax at all -- a real, current, unambiguous status applying in Palmer as statewide.
A favorable property tax rate within the Borough
Ownwell cited Palmer's median effective property tax rate at 1.10%, the lowest of any community it tracked within the Matanuska-Susitna Borough (whose own county-wide median ran higher, at 1.19%), producing a median annual bill of approximately $2,872.
A real, recent local sales tax increase
The City of Palmer's own local sales tax rose from 3% to 4% effective April 1, 2026, applied only to the first $1,000 of a sale (a $40 per-transaction cap).
Key takeaways
- Alaska's real, complete absence of state income tax applies in Palmer.
- Palmer's 1.10% effective property tax rate ran favorably low within the Matanuska-Susitna Borough.
- The City of Palmer's local sales tax rose from 3% to 4% effective April 2026.
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