Alaska is home to over 73,000 veterans — and the Last Frontier delivers some of the most distinctive benefits of any state. With no state income tax, VA compensation and military retirement are completely shielded from state taxation. Add meaningful property tax exemptions, resident tuition at the University of Alaska, and programs tailored to Alaska's vast geography, and you have a compelling picture for veterans choosing where to settle. Here's the complete 2025 guide.
Alaska ranks among the top states per capita for veterans. Its more than 73,000 veteran residents represent nearly 10% of the state's total population — a share that reflects Alaska's deep military identity. Major installations include Fort Wainwright (Fairbanks), home to Army Arctic combat brigades; Fort Greely, site of the Ground-Based Midcourse Defense system; Joint Base Elmendorf-Richardson (JBER) near Anchorage, home to Air Force and Army units; and Eielson Air Force Base near Fairbanks, home to the F-35 mission in the Pacific.
Veterans who serve in or retire from these installations — and many who simply choose Alaska as home — find a state that takes their service seriously at the legislative level. Alaska's legislature has consistently funded veteran benefits even during tight budget cycles, recognizing that the military community is interwoven with the state's economy and identity.
The single most powerful financial benefit Alaska offers veterans is simple: Alaska has no state income tax whatsoever. This is not a limited military exemption or a partial carve-out — Alaska has had no individual income tax since 1980, meaning every dollar of income for every resident is completely free from state taxation.
For veterans, this translates into significant dollar savings:
When comparing Alaska to states with income tax rates of 5–10%, the no-income-tax advantage compounds over a typical retirement period into tens of thousands of dollars — often exceeding the value of other state-specific programs. Veterans considering relocation should factor this heavily into their financial planning.
Editorial Standards: This article was written by Marcus J. Webb, a veterans benefits researcher who has studied 38 CFR Part 4, the VA M21-1 Adjudication Manual, and thousands of BVA decisions. Content is verified against current 38 CFR regulations and VA.gov guidance. Last reviewed: April 2026. Not legal advice — for representation on your specific claim, talk to a VA-accredited attorney.
Alaska law provides a meaningful advantage to veterans competing for state government jobs through the Alaska Veterans' Preference under Alaska Statute 39.25.159.
Veterans who served on active duty and were honorably discharged receive 5 preference points added to their score on state civil service examinations and competitive evaluations. Veterans who served during a period of war or a campaign or expedition for which a campaign badge has been authorized, or who are disabled as a result of service, receive 10 preference points. These points provide a meaningful edge in competitive state hiring processes and reflect Alaska's commitment to hiring those who served.
Surviving spouses of veterans who died in service or from service-connected disability may also be eligible for preference points in state hiring. Contact the Alaska Department of Administration, Division of Personnel and Labor Relations for current procedures.
Alaska's Job Center Network provides priority employment services to veterans at locations throughout the state. Services include job search assistance, resume writing help, labor market information, and connections to training programs. Veterans receive priority over non-veteran job seekers when accessing these services.
Alaska Native veterans — Alaska Natives who served in the U.S. Armed Forces — may access specialized programs that combine federal tribal veteran resources with Alaska Native corporation programs. Alaska Native Claims Settlement Act (ANCSA) regional and village corporations often have education, employment, and business development programs that Alaska Native veterans can access in addition to standard state and federal veteran programs. Veterans who are enrolled Alaska Natives should consult both ADVA and their respective regional corporation for the full scope of available benefits.
In a state where hunting and fishing are central to both culture and subsistence, Alaska's reduced-cost hunting and fishing licenses for disabled veterans carry particular significance. Alaska law provides discounted or free hunting and fishing licenses to veterans with qualifying service-connected disabilities. Given that Alaska is renowned for its world-class salmon fishing, moose and caribou hunting, and remote wilderness experiences, this benefit has real monetary and quality-of-life value for outdoors-oriented veterans.
Disabled veterans should contact the Alaska Department of Fish and Game (adfg.alaska.gov) or visit a local license vendor to verify current eligibility criteria and license costs. Documentation of VA disability rating is typically required.
Every Alaska resident who meets the eligibility requirements receives the Alaska Permanent Fund Dividend — an annual payment funded by the state's oil revenue invested in the Alaska Permanent Fund. Veterans living in Alaska receive the PFD just like any other resident. While the PFD is not a veteran-specific benefit, its existence means Alaska veterans enjoy a unique annual income stream that residents of no other state receive.
PFD amounts vary annually — in recent years the dividend has ranged from approximately $1,000 to over $3,000 per eligible resident. Veterans must apply annually and meet residency requirements (present in Alaska for the full calendar year, with limited exceptions for military duty or medical absence).
One of the most distinctive challenges for Alaska veterans is geography. With vast stretches of roadless wilderness separating rural communities from VA facilities and ADVA offices, accessing in-person care can be genuinely prohibitive. A veteran in a remote community like Bethel, Nome, or Kodiak may face a 400-mile journey just to reach an Anchorage VA appointment.
This reality has made Alaska a leader in veteran telehealth adoption. The VA's VA Video Connect (VVC) platform allows Alaska veterans to conduct mental health appointments, primary care visits, and specialty consultations via secure video from their homes or local clinics. This is not a minor convenience — for rural Alaska veterans, telehealth can be the difference between receiving care and going without.
Under the MISSION Act's community care provisions, Alaska veterans who face long drive times or wait times to VA facilities may qualify for care from local community providers — at VA expense. The geographic eligibility for community care is particularly broad in Alaska, given the vast distances involved. Veterans experiencing difficulty accessing VA care should request a community care referral from their VA primary care provider or contact the VA Community Care Network.
Use the claim.vet community care tool to understand your eligibility and find community providers in your area.
Alaska has no state sales tax and no vehicle excise tax — veterans purchasing vehicles or making large purchases keep more of their money than in most other states.
Wondering how Alaska stacks up against other states? Use the claim.vet state benefits comparison tool to evaluate your options side by side.
Alaska also has no statewide sales tax (though some municipalities impose local sales taxes). For veterans making large purchases — vehicles, recreational equipment, home goods — the absence of a statewide sales tax reduces the overall cost of living compared to states with both income tax and sales tax.
The Alaska VA Healthcare System is headquartered in Anchorage, with community-based outpatient clinics (CBOCs) in Fairbanks, Kenai, Wasilla, Juneau, and other communities. The VA system in Alaska has invested heavily in telehealth specifically to address the state's geographic challenges. Veterans in rural areas should be aware of the CBOCs nearest to them and inquire about telehealth enrollment when in-person travel is impractical.
Alaska's large active-duty and federal government workforce means significant opportunities for veterans transitioning into federal civilian employment. JBER, Eielson, Fort Wainwright, and various federal agencies based in Alaska all provide significant federal job opportunities where veterans' preference applies at the federal level. Combined with Alaska's 5–10 point state preference, veterans have meaningful advantages in both state and federal hiring pipelines.
No. Alaska has no state income tax, so VA disability compensation — which is already exempt from federal income tax — is also completely free from Alaska state taxation. All income, including VA pay, military retirement, wages, and investment income, is state-tax-free in Alaska.
Contact the Municipality of Anchorage Assessor's Office directly. You will need your DD-214, VA disability rating letter, proof of residency, and proof of property ownership. Application deadlines are typically set by the municipality and fall in early spring for the following tax year. The ADVA Anchorage office can also provide guidance.
Yes. All University of Alaska campuses are approved for GI Bill (Chapter 33 Post-9/11 and Chapter 30 MGIB) benefits. Veterans qualify for immediate resident tuition rates at UA, which maximizes the value of the GI Bill's tuition payment and reduces any potential Yellow Ribbon or out-of-pocket contribution.
Yes, though it may require creative use of telehealth and community care. The VA Alaska Healthcare System prioritizes telehealth for rural veterans. Contact the VA at 907-257-4700 (Anchorage) and specifically ask about telehealth enrollment and community care eligibility. ADVA can also assist remotely via phone and mail for claims and benefits questions.
The PFD is subject to federal income tax but not Alaska state income tax (Alaska has no income tax). It is reported as ordinary income on your federal return. For veterans on lower incomes or those receiving VA compensation, the tax impact may be minimal depending on your overall tax situation.
Ready to make sure your VA disability rating reflects your true level of service-connected disability? Use our disability rating calculator or compare Alaska against other states with our state benefits comparison tool. When you're ready to file or increase your claim, start your free claim review.
Alaska's no-income-tax advantage is only worth what your rating earns you. Make sure your VA rating is as high as your disabilities warrant — then keep every dollar of it.
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