Kodiak Island 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). Kodiak Island's borough mill rate is approximately 11.00 mills per $1,000 of AV, producing typical effective rates around 1.10%. 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.
2026 Kodiak Island County 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), Kodiak district)
| Taxing entity | Rate |
|---|---|
| Kodiak Island Borough School District | 6.8500 |
| Kodiak Island Borough (general) | 4.1500 |
| Combined total | 11.0000 |
As of April 27, 2026 · From Kodiak Island Borough Assessing Department.
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).