Alaska Short-Term Rental Laws: Your Guide

Jul 23, 2025, written by The Summer Team
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Alaska's short-term rental market thrives in the summer, when tourists flood in for once-in-a-lifetime cruises, glacier hikes, and remote fishing escapes. Cities like Anchorage, Juneau, and Sitka see a major uptick in demand, making short-term rentals an attractive investment for both local and out-of-state hosts. But before listing your cabin or coastal property, it's important to get familiar with Alaska short-term rental laws.

While the state doesn't ban STRs outright, local governments set their own rules. That means compliance can look very different in Fairbanks than it does in Anchorage. This guide walks you through the essentials, including Alaska Airbnb laws, taxes, and major city ordinances so you're not caught off guard. Still, you should always check out with a local real estate lawyer or the local government as regulations can and do change over time.

Staying compliant is only half the battle, staying competitive is the other. To actually thrive in this short-term rental market, you need real performance data, accurate forecasts, and market-specific insights—especially as local laws shift and tighten.

That’s where SummerOS comes in. SummerOS gives you access to institutional-grade Airbnb data, custom comp sets, and state-specific benchmarks so you can make smarter investment decisions and grow your STR business with less guesswork.

👉 If you’re serious about investing in a short-term rental, SummerOS is the data advantage you need. Start your free trial today!

Does Alaska allow short-term rentals?

Alaska does not prohibit short-term rentals statewide and there are no specific statewide STR regulations. Instead, each city or borough sets its own rules.

In practice, anyone renting property for under 30 days is generally allowed, provided they follow local laws. For this, hosts must obtain an Alaska business license for rental income. But beyond that, Alaska leaves most STR control to local governments.

Alaska short-term rental taxes

Alaska has no statewide lodging tax or sales tax, so there's no state-level hotel tax on STRs. In fact, Alaska is the only state without a statewide bed tax (though a bill proposing a 6% statewide tax was considered in 2023).

Taxes on vacation rentals are assessed at the city or borough level. Common STR taxes in key Alaska markets include:

  • Anchorage: 12% room tax on rentals under 30 days.
  • Juneau: 5% city sales tax on top of a 9% hotel (lodging) tax, for a total of 14% on the full nightly rate. Operators must register with Juneau's Sales Tax Office to collect and remit these taxes.
  • Sitka: 6% bed (lodging) tax year-round on any rental under 30 days and a 5-6% sales tax. In total, you'll need to pay 11-12%.
  • Fairbanks: An 8% hotel/motel room tax on rentals under 30 days.
  • Ketchikan: The Ketchikan Gateway Borough charges 4% and the City of Ketchikan adds 7%, totaling an 11% occupancy tax on short-term stays.

These city taxes are charged on top of any platform host fees, and it's up to hosts to register with the local tax office or make sure their listings include taxes in the nightly rate. For specifics like how often to file and what rules apply, check the city's official tax guide or website.

Statewide short-term rental laws in Alaska

Again, Alaska has very few STR-specific rules. The main requirement is a standard business license: under Alaska law, anyone "engaged in business", including renting real estate, must hold an Alaska Business License.

Keep in mind that Alaska's statewide building, fire and health codes apply as usual to all dwellings, but there are no separate state safety inspections just for STRs.

More importantly, no statewide Airbnb ban or cap exists, and proposed laws for such have not passed (although it's important to keep abreast of the news; in Kodiak, for example, there are talks of limiting STRs).

In short, STR hosts must comply with general business and safety laws (and state tax filing on any income), but are otherwise governed by local ordinances.

Short-term rental laws by Alaska city

Now that we've covered the state's general approach to STRs, it's time to narrow it down. Let's shift the focus on some major areas so you know what to expect wherever you're hosting.

Anchorage, Alaska short-term rental laws

Anchorage considers any rental under 30 nights a short-term rental. In 2024, the city approved a new licensing program to get a better handle on STR activity, but rollout has been delayed due to local politics. In the meantime, hosts are still expected to follow the current rules, especially when it comes to paying room tax and holding a business license.

This new law will:

  • Require a municipal short-term rental license for each STR property. The license will be valid for two years, with an annual fee between $200 and $400 (scaled by rental activity).
  • Require at least $500,000 in liability insurance coverage for the property, unless the rental is entirely facilitated through a major platform (like Airbnb or Vrbo) that provides equivalent coverage.
  • Require that hosts respond to any safety or nuisance issues within 24 hours and adhere to all fire code, trash, and noise regulations that apply to residential rentals.

For now, Anchorage's regulations are still relatively flexible: there are no caps on how many STRs can operate, and owners don't need to live on-site. There are also no special zoning restrictions or residency requirements, and STRs are generally allowed in all residential and mixed-use zones.

However, all hosts must obtain the standard State of Alaska business license applicable to any business, which is $50/year.

Additionally, Anchorage imposes a 12% hotel (room) tax on all rentals under 30 days. Airbnb has a voluntary agreement with the Municipality and automatically collects and remits the 12% room tax from guests at booking. Hosts using other channels (or direct bookings) must register with the city's Treasury to remit the 12% tax on their own.

Below is average data for an Airbnb property in Anchorage based on SummerOS' market data:

  • Gross Revenue: $37,549
  • Daily Rate: $183
  • Occupancy Rate: 70%

Juneau, Alaska short-term rental laws

Juneau requires all short-term rentals to be registered and taxed, but otherwise places very few restrictions on their operation (aside from the state business license required everywhere in Alaska). The City and Borough of Juneau (CBJ) defines an STR as a dwelling rented out for less than 30 days to the same occupant.

In 2023, Juneau launched a comprehensive STR registration program to monitor the industry's impact on housing availability. Unlike some municipalities, Juneau has not yet imposed caps on STRs or strict zoning rules. Instead, the focus is on collecting taxes and data from hosts.

Juneau hosts need to:

  • Register each rental unit with the city before offering stays (this is free of charge). Recently, Juneau tightened this requirement and now, every online listing for a Juneau STR must display the official CBJ registration number so that unregistered rentals can be identified.
  • Remit a 5% general sales tax and an additional 9% hotel-bed tax totaling 14% on rental revenues to the city. Effective July 1, 2025, Airbnb, VRBO, and similar "marketplace facilitators" are required by ordinance to collect and pay Juneau's sales and hotel taxes on behalf of hosts.

At present, Juneau does not enforce any special zoning permit for short-term rentals and the city allows STRs in residential zones without a conditional use permit, treating them similarly to long-term rentals. 

Below is average data for an Airbnb property in Juneau based on SummerOS' market data:

  • Gross Revenue: $51,323
  • Daily Rate: $263
  • Occupancy Rate: 66%

Sitka, Alaska short-term rental laws

Sitka has one of the most restrictive short-term rental regimes in Alaska, aimed at protecting the local housing market. The City and Borough of Sitka defines a short-term rental as any dwelling unit rented for fewer than 30 days at a time.

In response to a tight housing market and a surge in vacation rentals, Sitka's Assembly enacted a 2022 ordinance that significantly tightened STR rules. The hallmark of Sitka's approach is an owner-occupancy requirement: new short-term rentals are only allowed if the owner lives on the property as their primary residence for at least half of the year.

This effectively bans investor-owned vacation rentals that displace full-time housing, while still allowing homeowners to host guests occasionally. Additionally, Sitka maintains a permitting process through its Planning Commission to control STRs in residential neighborhoods.

Here's a summary of Sitka's regulations regarding STRs:

  • In Sitka, you can only operate a short-term rental in your primary residence. The law requires that the owner physically reside on the property for at least 180 days per calendar year. Proof of residency (such as voter registration or vehicle registration showing the STR's address) must be provided.
  • Sitka requires a Conditional Use Permit (CUP) for short-term rentals located in residential zoning districts.
  • Sitka mandates that hosts register with the Sitka tax office and handle all required lodging taxes themselves (i.e., unlike cities like Anchorage, Airbnb cannot collect and remit taxes for hosts in Sitka).
  • When operating an STR, owners must collect the regular Sitka sales tax on the rental rate (Sitka's general sales tax is 6% in summer months and 5% in winter on rentals). In addition, Sitka levies a dedicated "bed tax" of 6% on short-term accommodations year-round.

Sitka's enforcement of STR rules is proactive. If an STR is found operating without the required owner-occupancy or without a CUP, the city can take action to shut it down.

Despite these challenges, there are Sitka homeowners who successfully operate STRs under the city's framework, often as home-share or accessory units. The intent is to allow supplemental income through Airbnb-style renting without removing long-term housing from the market.

Below is average data for an Airbnb property in Sitka based on SummerOS' market data:

  • Gross Revenue: $52,944
  • Daily Rate: $285
  • Occupancy Rate: 64%

Fairbanks, Alaska short-term rental laws

In Fairbanks and the surrounding North Star Borough, short-term rentals are legal but tightly regulated through zoning and permitting.

The Fairbanks North Star Borough (FNSB) treats STRs as "tourist homes" in its code. This is a category that is only allowed in certain zones and typically requires a conditional use permit. 

There is no separate city of Fairbanks STR ordinance; the borough-wide rules apply to the City of Fairbanks and other communities within the borough. Important requirements include obtaining proper licenses (like the state business license, on top of anything else required by the city), adhering to zoning restrictions, and remitting an 8% borough room tax on short-term stays.

Here's a breakdown:

  • Operating any STR in the Fairbanks area requires two business licenses, one from the state and one from the Fairbanks North Star Borough. The borough license is part of the local code compliance and is separate from the standard Alaska state business license.
  • The property itself must be in a zoning district that allows short-term rentals (designated as "tourist home" use in zoning code). If your property's zoning is compatible, you then must apply for a Conditional Use Permit (CUP) through the FNSB Department of Community Planning in order to legally operate the STR.
  • Short-term rentals in the Fairbanks North Star Borough are subject to an 8% lodging tax on the gross rent collected. This is officially called the FNSB Hotel/Motel Room Tax, and it applies to all stays less than 30 days in hotels, motels, B&Bs, and STRs.
  • Note that Airbnb and VRBO do not automatically collect the 8% room tax, so it falls to your responsibility as a host.

Below is average data for an Airbnb property in Fairbanks based on SummerOS' market data:

  • Gross Revenue: $39,558
  • Daily Rate: $192
  • Occupancy Rate: 69%

Ketchikan, Alaska short-term rental laws

Ketchikan recently rolled out a permitting system for short-term rentals that is relatively permissive, especially compared to other cities' strict rules.

In the Ketchikan Gateway Borough (which includes the City of Ketchikan), short-term rentals are defined as transient use of a dwelling for less than one month and are allowed across most zones with a simple permit and compliance with basic standards.

Here are the requirements to operate an STR in the area:

  • Like the rest of the state, hosts are required to have an Alaska state business license and to comply with any borough zoning conditions.
  • A free zoning permit obtained through the Ketchikan Gateway Borough's Planning Department. This permit does not expire.
  • Collecting and remitting a local sales tax and a transient occupancy tax ("bed tax"), which vary depending on location. The Ketchikan Gateway Borough has a baseline 2.5% borough sales tax on all sales, including lodging. On top of that, the City of Ketchikan levies its own city sales tax, which is seasonal for tourism: an extra 3% (making total 5.5%) during October to March, and an extra 5.5% (making total 8%) during April to September.
  • Additional taxes, like a hotel/transient occupancy tax (TOT). The borough's TOT is 4%, and within the City of Ketchikan the city has an additional 7% hotel tax, for a combined 11% lodging tax on STR stays in the city.
  • At least one dedicated off-street parking space per STR unit.

Note that both Airbnb and VRBO do not automatically collect Ketchikan's local taxes, so you'll need to collect and remit the tax yourself.

Below is average data for an Airbnb property in Ketchikan based on SummerOS' market data:

  • Gross Revenue: $30,808
  • Daily Rate: $215
  • Occupancy Rate: 47%

Do Airbnbs do well in Alaska?

Alaska's STR market can be very lucrative in peak season, but it's highly seasonal. Some cities see occupancy rates nearing 70% with strong ADRs and nightly rates often exceeding $150. But from late fall through spring, tourism drops dramatically. Many hosts earn the bulk of their income between May and September, then either switch to long-term rentals or pause operations during the off-season.

And despite not having any statewide regulations, hosts need to navigate complex local laws. As we've detailed, each municipality has its own licensing, tax, and zoning rules. In general, Airbnbs and vacation rentals can do well in Alaska if they are located in active tourist markets and run legally.

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This article was written by
The Summer Team
Summer empowers short term rental property managers, owners, and investors to make smarter, more profitable decisions backed by data. Our team is on a mission to revolutionize the vacation rental industry by combining deep market data with intuitive technology so property owners can stay ahead of the competition. With Summer, brighter days are ahead. Learn more at summeros.com.

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