Side-by-side tax comparison between Alaska (no income tax) and Washington (no income tax). See which state lets you keep more at every salary level, and how cost of living changes the picture.
Both Alaska and Washington have no state income tax, so the take-home pay difference at any salary level comes down to local taxes and cost of living. Federal tax and FICA are identical regardless of state.
Neither state imposes local income taxes, so the only difference is cost of living: Alaska at 127 vs Washington at 110.
Alaska wins at 0 out of 10 salary levels tested. The states are evenly matched.
| Salary | Alaska | Washington | Difference | Winner |
|---|---|---|---|---|
| $40K | $34,320 | $34,320 | $0 | Tie |
| $50K | $42,355 | $42,355 | $0 | Tie |
| $60K | $50,390 | $50,390 | $0 | Tie |
| $75K | $61,538 | $61,538 | $0 | Tie |
| $100K | $79,125 | $79,125 | $0 | Tie |
| $120K | $93,195 | $93,195 | $0 | Tie |
| $150K | $113,751 | $113,751 | $0 | Tie |
| $200K | $148,887 | $148,887 | $0 | Tie |
| $250K | $183,264 | $183,264 | $0 | Tie |
| $300K | $215,329 | $215,329 | $0 | Tie |
Take-home pay only tells part of the story. Alaska has a cost of living index of 127 while Washington is at 110 (national average = 100).
This is a substantial difference. After adjusting for cost of living, $100K in Alaska has purchasing power of $62,303 compared to $71,932 in Washington. Interestingly, Washington wins on purchasing power even though Alaska has higher raw take-home pay. The cost of living difference more than offsets the tax advantage.
For a single earner at $100K filing jointly, take-home becomes $84,710 in Alaska and $84,710 in Washington \u2014 a difference of $0. The gap remains similar regardless of filing status.
On paper, moving from Washington to Alaska would save $0/year on a $100K salary, or $0 over 5 years. But relocation involves real costs: moving expenses, potentially buying/selling a home, changing jobs, and adjusting to a new community.
At $0/year, the tax difference alone likely isn’t worth relocating for. Other factors — job market, lifestyle, family — should drive the decision. The tax savings are a nice bonus if you’re already considering the move for other reasons.