The Highlights
- Alaska’s new economic nexus threshold is now triggered only by $100,000 in gross sales.
- The new nexus rules are designed to benefit smaller businesses, who can take advantage to save more on taxes.
- You may potentially qualify for deregistration if your business falls below the $100,000 threshold.
Ecommerce sales tax compliance is a dynamic game no matter where you’re selling from, and 2025 has been full of exciting changes. Effective January 1, 2025, the ARSSTC eliminated the 200-transaction threshold for establishing an economic nexus.
What is the new Alaska economic nexus’s impact on small businesses, and how does that affect marketplace facilitator rules in Alaska? Find out everything you need to know with this RJM Tax Exemption blog.
What Changed?
Before January 1, 2025
Before January 1, 2025, remote sellers triggered an economic nexus in certain local Alaska jurisdictions (the state itself does not have a statewide sales tax) if they exceeded either:
- $100,000 in gross annual sales, or
- 200 separate transactions
Alaska’s pre-2025 economic nexus rules were an entirely different beast. The so-called ‘or’ structure meant that even sellers with relatively low total revenue but high transaction volumes (think low-priced products like stickers or digital downloads) could trigger an economic nexus in the state.
The end result? Many small Etsy shops and handmade goods sellers operating niche online stores found themselves required to register for sales tax in Alaska simply because they reached 200 orders, even if their gross sales were less than $100,000.
After January 1, 2025
Alaska’s 2025 economic nexus rules align the state with a growing national trend toward sales-only thresholds, as in California. According to the new rules, the nexus can be triggered solely by reaching $100,000 in statewide gross sales.
Are Marketplace Sales Included?
Yes. While most state regulations focus on direct sales (made through a seller’s own website), Alaska’s new threshold also includes revenue from digital marketplaces, like Amazon.
The Impact of the Alaska Economic Nexus on Small Businesses
Alaska’s 2025 economic nexus rules are, by all accounts, a real game-changer for ecommerce entrepreneurs and established small businesses.
Reduced Compliance Burden
Previously, sellers had to meticulously track both total sales dollars and the number of individual transactions into Alaska for sales tax filing purposes. This dual monitoring structure was especially cumbersome for small operators without sophisticated accounting software or assistance from tax experts.
Now, with a single threshold criterion, tracking becomes far simpler for every seller, regardless of their resources. Small businesses can now rely on basic sales reports from their own website and marketplaces like eBay, freeing up time and resources to focus on product development and marketing.
Opportunity for Deregistration
The 2025 economic nexus rules in Alaska have opened up a significant opportunity for deregistration. A significant number of small sellers registered with the ARSSTC only after exceeding 200 transactions, even though their total sales remained well below $100,000.
These businesses can now elect to cancel their ARSSTC sales tax registration. While you should only consider doing this after going over marketplace facilitator rules in Alaska, taking this step can eliminate ongoing filing obligations and potential late fees, not to mention the constant hassle of quarterly/monthly returns.
A Level Playing Field
Sellers of affordable small-ticket items like:
- Handmade crafts
- Digital downloads (like eBooks)
- Stickers and other printables
- Small accessories
Stand to benefit disproportionately from Alaska’s 2025 economic nexus rules. The impact of Alaska’s economic nexus on small businesses levels the playing field, making sustainable growth significantly more feasible.
What Should Small Businesses Do?
Confused about the way ahead for a small business? From sales tax registration to sales tax filing, we have you covered.
- Review Your 2024 and 2025 Sales: Check gross sales delivered into Alaska for the past two years, including marketplace-facilitated sales. If you’re under $100,000 for both years, you have no ongoing obligations.
- Get Expert Help for Deregistration: Use the ARSSTC’s Remote Seller Account Closure form if you’re considering deregistration. However, we suggest consulting a tax expert before making any big changes in reaction to Alaska’s 2025 economic nexus rules.
- Keep Monitoring: If your sales have been growing consistently and are nearing the $100,000 threshold, consider timely registration to avoid penalties.
Experience Easier Compliance with RJM
Alaska’s nexus revolution is just one point on a broader trend. Compliance across the country is changing, and ecommerce businesses have to adapt. RJM Tax Exemption makes compliance for ecommerce businesses easier than ever with proactive tax planning, fast timelines, and competitive prices. Get a free consultation today!
Frequently Asked Questions
How have Alaska’s economic nexus rules changed in 2025?
As of January 1, 2025, the ARSSTC has elected to eliminate the 200 transaction threshold for establishing an economic nexus. Now, a nexus can only be triggered if a business exceeds $100,000 in gross statewide sales.
Do I still need to collect sales tax in Alaska if I only exceeded the 200-transaction threshold?
No. You no longer have to collect sales tax as long as you’re under the $100,00 threshold. To learn more about the impact of Alaska’s economic nexus on small businesses, contact RJM!
How do I know if I qualify to cancel my ARSSTC registration?
You’ll need to register your gross sales delivered into Alaska for 2024 and 2025. If your gross sales were below $100,000 both years, you qualify for deregistration.
