Alaska Guide for Canadians

Quick Facts

State Income Tax	No state income tax
Sales Tax	No state sales tax (local taxes vary 0-7.5%)
Driver's License Grace Period	90 days for residents
Residency Requirement for Tax	Alaska domicile or 183+ days with permanent place of abode
Vehicle Registration Deadline	30 days after establishing residency
REAL ID Deadline	May 7, 2025 for domestic flights
Enhanced Driver's License	Not available

First 90 Days Checklist

Week 1-2: Essential Documents & Registration

• Register with USCIS if staying 30+ days (required by April 11, 2025)
• Gather required documents for driver's license
• Open US bank account
• Set up Alaska mailing address

Week 3-4: Official Registration

• Apply for Alaska driver's license (within 90 days)
• Complete knowledge test, vision screening, and road test
• Begin vehicle registration process (within 30 days)
• Register to vote (if eligible)

Month 2-3: Establishing Residency

• Update address with Canadian financial institutions
• Complete vehicle registration and titling
• Establish Alaska ties and connections
• Research healthcare options and insurance

Driver's License & Vehicle Requirements

For Canadian Citizens

Required Documents:

• Valid unexpired foreign passport with valid U.S. entry marking (List B)
• Social Security Number document or proof of non-work status exemption (List D)
• Two proofs of Alaska residency (List C)
• Out-of-state credential if applicable (List G)

Testing Requirements:

• Knowledge test required for all new applicants
• Vision screening required
• Road skills test required - Alaska does not accept foreign licenses
• SAVE verification required for all non-U.S. citizens (may require additional visit)

REAL ID Option:

• Available for qualifying non-citizens with proper documentation
• Required for domestic air travel after May 7, 2025
• Enhanced Driver's License not available in Alaska
• Passport required for international travel

Important Notes:

• 90-day limit to get Alaska license after establishing residency
• SAVE verification process may delay issuance
• Must present original documents - no copies accepted
• Additional documentation may be required for certain visa classifications

Vehicle Registration

• Register within 30 days of establishing residency
• Must obtain Alaska title before registration
• Registration fees based on vehicle age and value
• Alaska insurance required for registration
• Biennial registration renewal required

Tax & Residency Considerations

Alaska State Tax Structure

• **No state income tax** - major advantage for residents
• **No state sales tax** - local municipalities may impose up to 7.5%
• **Property taxes** vary widely by borough (some areas have no property tax)
• **Permanent Fund Dividend** - annual payment to qualifying residents
• **No inheritance tax** on estates

Establishing Alaska Tax Residency

Alaska residency is based on domicile or physical presence:

• Domiciled in Alaska (intent to make permanent home)
• Present in Alaska for 183+ days with permanent place of abode
• Maintaining a permanent place of abode for entire tax year makes you resident
• Alaska driver's license and voter registration help establish domicile

Documentation to Establish Residency

• Alaska driver's license and voter registration
• Bank accounts and utility bills in Alaska
• Employment or business activities in Alaska
• Property ownership or long-term lease agreements
• Professional licenses and club memberships

Tax Benefits

Alaska offers exceptional tax advantages with no state income tax and no state sales tax. The Permanent Fund Dividend provides annual payments to qualifying residents, and many areas have no property tax, making it very attractive for tax planning.

High Cost of Living

Despite tax advantages, Alaska has one of the highest costs of living in the U.S. due to remote location, shipping costs, and limited competition. Food, fuel, and utilities are significantly more expensive than the lower 48 states.

US Federal Tax Implications for Canadians

Important: Under the Substantial Presence Test, you may be considered a U.S. resident for tax purposes.
New Requirement: Canadians staying 30+ days must register with USCIS by April 11, 2025.
Recommendation: Consult a cross-border tax professional.

Healthcare Considerations

Insurance Options

• Alaska expanded Medicaid (limited eligibility for non-citizens)
• Travel insurance strongly recommended
• Consider US health insurance if staying permanently
• Quality medical facilities in Anchorage, Fairbanks, and Juneau

Prescription Medications

• Bring adequate supply from Canada
• Understand prescription transfer requirements
• US prices often higher than Canadian prices
• Limited pharmacy options in remote areas

Emergency Preparedness

• Remote locations require emergency preparedness
• Weather-related medical evacuations may be necessary
• Consider medical evacuation insurance
• Stock emergency supplies for winter isolation

Special Considerations for Snowbirds

New US Registration Requirements (2025)

• Canadians staying 30+ days must register with USCIS
• Registration required by April 11, 2025
• Print and carry latest I-94 as proof of legal entry
• Failure to register may affect future US travel

Maintaining Canadian Ties

• Keep principal residence in Canada
• Monitor days in U.S. for tax reasons (183-day rule)
• Maintain Canadian insurance & banking relationships
• Alaska's permanent place of abode rule requires careful planning

Property Considerations

• Property values vary dramatically by location and accessibility
• Property taxes vary by borough (some areas have none)
• Remote properties may lack utilities and road access
• Impact on Canada's principal residence exemption

Climate & Lifestyle Factors

• Extreme seasonal variation in daylight hours
• Harsh winters with temperatures well below freezing
• Short growing season and limited fresh food availability
• Remote lifestyle requires self-sufficiency and preparation

Border Proximity Considerations

• Direct border with Canada through British Columbia and Yukon
• Enhanced Driver's License not available in Alaska
• NEXUS/Global Entry beneficial for border crossings
• Alaska Highway provides road access to/from Canada

Travel Documentation

• Ensure passport validity (6+ months remaining)
• Consider Global Entry/NEXUS for easier border crossings
• Enhanced Driver's License not available in Alaska
• I-94 registration now required for 30+ day stays

Unique Alaska Benefits

Alaska offers unparalleled natural beauty, abundant wildlife, and unique tax advantages including no state income tax and the Permanent Fund Dividend. Perfect for those seeking adventure and outdoor lifestyle.

Remote Living Challenges

Extreme weather, high costs, limited services, and seasonal isolation present significant challenges. Emergency preparedness and self-sufficiency are essential for Alaska living.

Key Contacts & Resources