Property Tax in Fairbanks North Star Borough, Alaska

Property Tax in Fairbanks North Star Borough

A calculator and field guide for Fairbanks-area homeowners — and for anyone considering a move to Fairbanks North Star Borough — including Alaska's borough-only property tax structure (NO statewide tax; Unorganized Borough has NO property tax — covers ~57% of Alaska land area but ~13% of population), the 100% full-and-true-value assessment (AS 29.45.110), the constitutional 30-mill cap (AS 29.45.090), the mandatory $150,000 Senior/Disabled Vet AV exemption (AS 29.45.030 — among the most generous senior exemptions in the US, no income limit), the optional Municipal Residential Exemption (Anchorage $50K, Mat-Su $50K, Fairbanks $46,620, Juneau $50K), and the Permanent Fund Dividend (~$1,702 per resident in 2025, offsetting property tax for many residents).

Fairbanks North Star Borough operates under Alaska's borough-level property tax system — there is NO statewide property tax. Real property is assessed at 100% of full and true value (AS 29.45.110). Fairbanks North Star's borough mill rate is approximately 17.47 mills per $1,000 of AV, producing typical effective rates around 1.36%. Alaska's mandatory $150,000 Senior/Disabled Veteran AV exemption (AS 29.45.030) is among the most generous in the United States — and Alaska has no state income tax, no state sales tax, plus the annual Permanent Fund Dividend (~$1,702 per resident in 2025).

How the bill is built

Alaska is unique among US states: property tax is local-only (boroughs and home-rule municipalities), and the Unorganized Borough — covering ~57% of Alaska's land area but ~13% of population — has NO property tax at all. For organized boroughs: AV = 100% of full and true value (AS 29.45.110). Tax = AV × borough mill rate / 1000. Apply mandatory $150K Senior/Disabled Vet exemption (AS 29.45.030) and any optional municipal residential exemption (Anchorage $50K, Mat-Su $50K, Fairbanks $46,620) before the rate. The Alaska Constitution caps property tax at 30 mills (3% of AV) per AS 29.45.090, but no borough comes close.

The $150K Senior/Disabled Vet exemption is mandatory and dramatic. Owner-occupied 65+/widow(er) 60+/50%+ service-connected disabled vet homestead receives first $150,000 of AV exempt — no income limit, no application fee. On a typical Alaska home valued at $400K, that's a $$2,621+ annual tax reduction. Apply with the borough assessor by January 15 (varies by borough). One of the most valuable senior property tax benefits in the United States.

Alaska is NOT a categorical full-vet-exemption state. The $150K AV exemption (AS 29.45.030) functions as full exemption only for homes valued at or below $150K (rare in Anchorage); larger homes pay on the AV above $150K. Stack with optional municipal residential exemption for compounded benefit. Alaska also offers no state property tax exemption for non-disabled veterans — must use the senior or disabled-vet path.

Fairbanks North Star Borough rate breakdown (borough mill rate per $1,000 of AV (100% full and true value; AS 29.45.090 caps at 30 mills; $150K Senior/Disabled Vet AV exemption per AS 29.45.030), Fairbanks district)

Taxing entity	Rate
Fairbanks North Star Borough School District	7.8900
Fairbanks North Star Borough (general)	5.2300
City of Fairbanks (typical)	4.3500
Combined total	17.4700

Data record updated April 27, 2026. This is an editorial update date, not a tax year or a guarantee that every figure has been independently verified.

Sources and scope: Check rates and parcel details with Fairbanks North Star Borough Assessing Department. Figures may refer to different source years; a county-seat rate does not apply to every address. How we use data and estimates.

Note: Fairbanks North Star Borough is Alaska's interior population center and the second-largest borough by population. Major employers include the University of Alaska Fairbanks (UAF, ~8K students — the state's research flagship), Eielson Air Force Base (~3K active-duty), Fort Wainwright (~7K active-duty), Trans-Alaska Pipeline operations, and Fairbanks Memorial Hospital. Fairbanks is also a major aurora viewing destination, drawing substantial winter tourism.

Note: Fairbanks North Star's combined mill rate runs ~13-14 mills on 100% AV (or ~17-18 mills inside Fairbanks city limits, which adds the city general fund rate), producing typical effective rates around 1.04-1.47% depending on location. The borough's substantial military federal property is exempt from local property tax but generates Payments in Lieu of Taxes (PILT).

Note: Fairbanks North Star offers the mandatory $150K Senior/Disabled Vet exemption (AS 29.45.030) plus an optional $46,620 borough residential exemption for owner-occupied primary residences. Combined exemptions on a $250K home reduce taxable AV to ~$53K — about $720/year at 13.5 mills. Apply with the FNSB Assessing Department by January 15.

Deductions and exemptions for 2026

Alaska's property tax exemption structure is among the most generous in the United States — and it's all locally administered, with the state mandating only the senior/disabled-vet exemption. The four primary mechanisms: the $150K Senior Citizen Exemption (AS 29.45.030, mandatory for organized boroughs), the $150K Disabled Veteran Exemption (AS 29.45.030, mandatory for 50%+ rated), the Optional Municipal Residential Exemption (set by each borough — Anchorage $50K, Mat-Su $50K, Fairbanks $46,620), and the Permanent Fund Dividend (~$1,702 in 2025; offsets property tax for many residents).

Senior Citizen Exemption (AS 29.45.030)

First $150,000 of AV exempt for owner-occupied primary residence of 65+ OR widow/widower 60+ of qualifying senior. NO income limit. Mandatory for all organized boroughs and home-rule municipalities under Alaska statute. Apply with the borough assessor by January 15 of the tax year (varies slightly by borough). One-time application — auto-renews unless ownership or residency changes. On a $400K Anchorage home with the 14-mill rate, this saves ~$2,100/year.

Disabled Veteran Exemption (AS 29.45.030)

First $150,000 of AV exempt for owner-occupied primary residence of veteran with 50%+ service-connected disability rating. NO income limit. Same statute as the Senior Citizen Exemption — boroughs must offer both. Cannot stack (one or the other on the same property — but they\u2019re typically equivalent in benefit). Surviving unremarried spouse may continue receiving. Apply with borough assessor and submit VA disability rating decision + DD-214.

Optional Municipal Residential Exemption

Each organized borough may adopt an additional exemption for owner-occupied primary residences. Anchorage Municipality adopted $50,000 (saves ~$700/year at 14 mills); Matanuska-Susitna Borough $50,000; Fairbanks North Star Borough $46,620; Juneau City and Borough $50,000. Most boroughs require a one-time application; some auto-apply at closing. Check the borough assessor\u2019s office for the specific exemption amount and application requirements.

The Permanent Fund Dividend (PFD)

Not a property tax exemption, but offsets property tax for many residents. The Alaska Permanent Fund Dividend is an annual cash distribution to all eligible Alaska residents from oil-and-gas royalty earnings. The 2025 PFD was $1,702 per person — a family of 4 received $6,808, often more than the annual property tax bill on a modest Mat-Su home. Apply between January 1 and March 31 each year for that year\u2019s dividend.

Appealing your assessment

Assessment notices are mailed by late January (Anchorage by January 15; varies by borough). Owners must file an appeal within 30 days of notice (per AS 29.45.190 — varies slightly by borough ordinance). The first level is informal review with the borough assessor; if unsatisfied, formal appeal to the Borough Board of Equalization (typically meets May-June). Final appeal is to the Alaska Superior Court within 30 days of BOE decision. Grounds for appeal are limited to unequal, excessive, improper, or under-valuation per AS 29.45.200 — you cannot appeal the mill rate itself (that\u2019s set at the borough assembly\u2019s budget hearings).

Cities and towns in Fairbanks North Star Borough

This guide lists 6 selected communities in or associated with Fairbanks North Star Borough. It is not a complete municipal directory. Local taxing districts can differ between communities and individual addresses.

Data: US Census Bureau, 2020 Decennial Census. Populations rounded. Cities marked as "split" straddle a county border — the portion inside Fairbanks North Star Borough is subject to Fairbanks North Star Borough's tax rolls, while the portion outside is subject to the adjacent county's.

City or town	Type	Population (2020)
Fairbanks County seat	city	32,000
Eielson AFB	unincorporated	2,700
Ester	unincorporated	2,400
North Pole	city	2,200
Salcha	unincorporated	1,100
Two Rivers	unincorporated	700

About city-level property tax rates: The rate breakdown and calculator on this page use a representative district around Fairbanks. Other cities in Fairbanks North Star Borough may pay into different school districts, city rates, and special districts — so their combined rates can differ, sometimes substantially. Always verify the specific rates for your address with the Fairbanks North Star Borough Assessing Department before relying on any estimate.

Frequently asked questions

When are Alaska property taxes due?

Bills are issued annually after assessment certification. Most organized boroughs use a split-payment schedule: first half due June 15, second half due August 15 (Anchorage, Mat-Su); some boroughs use single annual due dates. Late payments accrue 8-10% interest annually (varies by borough ordinance). Most homeowners pay through escrow via mortgage servicer.

Why do some parts of Alaska pay no property tax at all?

Alaska is divided into 19 organized boroughs (which levy property tax) and the Unorganized Borough (which does NOT). The Unorganized Borough covers ~57% of Alaska's land area but only ~13% of its population, including most of rural Alaska, much of the Bush, and parts of Southeast outside Juneau/Sitka/Ketchikan/etc. Residents there pay no property tax — but also receive fewer municipal services. The state legislature has periodically debated whether to mandate borough formation; no consensus.

How does the $150,000 Senior/Disabled Vet exemption work?

Per AS 29.45.030, all organized boroughs MUST exempt the first $150,000 of AV on the owner-occupied primary residence of: (1) homeowners 65+, (2) widow/widower 60+ of a qualifying senior, or (3) veterans with 50%+ service-connected disability. NO income limit. NO application fee. On a $400K Anchorage home with the 14-mill rate, this is ~$2,100/year savings. Apply with the borough assessor by January 15 (varies); auto-renews.

Why isn't Alaska a "full vet exemption" state?

The $150K AV reduction (AS 29.45.030) functions as full exemption only for homes valued at or below $150K — rare in Anchorage and Juneau where most homestead values exceed that. Larger homes pay on the AV above $150K. Stack with the optional municipal residential exemption ($50K Anchorage, $50K Mat-Su, $46,620 Fairbanks) to push the effective tax-free threshold to $200K. Alaska has no full-exemption category for 100% disabled vets like NJ, MD, VA, or other categorical-exemption states.

How does the Permanent Fund Dividend offset property tax?

The Permanent Fund Dividend (PFD) is an annual cash distribution to all eligible Alaska residents from the Alaska Permanent Fund's oil-and-gas royalty earnings. The 2025 PFD was $1,702 per person — a family of 4 received $6,808. For many Mat-Su or Kenai residents with modest homes, the household PFD exceeds the annual property tax bill. Apply between January 1 and March 31 each year for that year's dividend; must have been an Alaska resident the entire prior calendar year.

About Fairbanks North Star Borough

Beyond the property tax — a few things you might not know about the place.

Weird fact

North Pole, Alaska (in the FNSB), is a year-round Christmas-themed city — streets are named Saint Nicholas Drive, Mistletoe Lane, and Snowman Lane. The Santa Claus House (a tourist attraction since 1952) receives ~125,000 letters addressed to Santa each year, including thousands from foreign children. The local high school is the North Pole Patriots; their athletic teams include the Patriots and the Lady Patriots.

Hometown hero

Susan Butcher

Four-time Iditarod champion (1986, 1987, 1988, 1990) and Alaska sled dog racing icon. Lived in Manley Hot Springs (FNSB-adjacent) and trained her dogs in the Eureka area. Died of leukemia in 2006; the Susan Butcher Day (first Saturday in March) is an Alaska state holiday.

Biggest annual event

World Eskimo-Indian Olympics

Annual July athletic competition in Fairbanks celebrating Alaska Native cultural games — the One-Foot High Kick, Two-Foot High Kick, Ear Pull, Eskimo Stick Pull, Knuckle Hop, and Blanket Toss. Running since 1961, the event draws competitors and spectators from across Alaska, the Yukon, and the Arctic.

Property Tax in Fairbanks North Star Borough