Veteran taxes by state
Alaska veteran taxes
How Alaska treats military retired pay and Survivor Benefit Plan annuities in its income tax, and its property tax and vehicle registration relief for disabled veterans — from the state’s own pages.
On this page5 sections
- Military retired pay
- No income tax
- SBP annuities
- No income tax
- Property tax
- Exemption or credit
- Vehicle registration
- Fee waiver or discount
Military retired pay in Alaska
No income taxSource 1
Alaska has no individual income tax, so military retired pay is not taxed by the state. The Department of Revenue’s Tax Division states that the State of Alaska currently does not have an individual income tax.
Survivor Benefit Plan annuities
No income taxSource 1
Alaska has no individual income tax, so Survivor Benefit Plan annuities are not taxed by the state.
Property tax relief for disabled veterans
Exemption or creditSources 2, 3
Under AS 29.45.030(e), the primary residence of a resident disabled veteran is exempt from property tax on the first $150,000 of assessed value. A disabled veteran is a resident separated under other than dishonorable conditions whose disability was incurred or aggravated in the line of duty and is rated 50 percent or more by the branch of service or the U.S. Department of Veterans Affairs (AS 29.45.030(i)). The exemption is granted only on written application to the municipal assessor, with evidence of the disability rating.
- Amount: first $150,000 of assessed value of the real property (including mobile homes) owned and occupied as the primary residence; a municipality may exempt more in case of hardship.
- Who: service-connected disability rated 50 percent or more; Alaska Territorial Guard service also counts (AS 29.45.030(i)(1)(B)).
- A municipality may by ordinance require eligibility for a permanent fund dividend and sets the application procedure and deadlines (AS 29.45.030(f)).
Surviving spouse
A widow or widower (not remarried) at least 60 years of age of a person who qualified keeps the exemption; a municipality may, by ordinance approved by the voters, extend it to a widow or widower under 60 of a disabled veteran, or to the widow or widower of a service member who died from a service-connected cause.
Vehicle registration for disabled veterans
Fee waiver or discountSources 4, 5
Under AS 28.10.181(d), a disabled veteran who meets the 50 percent definition in AS 29.45.030(i) may register one motor vehicle without charge and receives a specially designed plate recognizing the disabled veteran, without the international symbol of accessibility or parking privileges. A veteran whose service-connected disability limits or impairs the ability to walk may register one vehicle without charge with a disabled veteran plate that also shows the wheelchair symbol.
- One motor vehicle registered without charge (AS 28.10.181(d); AS 28.10.421(d)(3) sets the registration fee for such a vehicle at none).
- Plate: disabled veteran recognition plate; a qualifying veteran may instead choose a veteran or Purple Heart plate under AS 28.10.181(p) or (q).
Sources
Each source was read on October 28, 2026 on the state’s own site, the normal way. The numbers in the sections above point here.
- Alaska Department of Revenue - Tax Division, Personal Income
- Sec. 29.45.030. Required exemptions.
- Veterans Benefits: Complete Guide to Alaska & Federal Benefits
- Sec. 28.10.181. Registration of unique and special vehicles and vehicles used for special purposes; special registration plates.
- Sec. 28.10.421. Registration fee rates.