Alaska Paycheck Calculator & Income Tax Rates (2026)

Alaska does not levy a personal income tax, so there are no brackets, no standard deduction and no state withholding from your paycheck. Federal income tax, Social Security (6.2% up to $184,500) and Medicare (1.45%, plus 0.9% above $200,000) are the only payroll taxes you pay.

With no state tax, the effective rate in Alaska rises only because federal brackets are progressive and the 0.9% additional Medicare tax kicks in above $200,000.

Filing status only changes the federal side in Alaska. A married couple filing jointly on $100,000 keeps $84,710 versus $79,125 for a single filer — the difference comes entirely from the doubled federal standard deduction ($32,200 vs $16,100) and wider federal brackets.

Alaska has no personal income tax and has not had one since 1980, when the legislature repealed the tax it had enacted in 1949 as North Slope oil revenue began flowing into the treasury. Unlike Texas or Florida, nothing in Alaska's constitution prohibits an income tax; the legislature has debated reinstating one repeatedly during oil-price downturns, most recently in the late 2010s and again in 2023–2025, but no bill has passed. Wages, self-employment income, capital gains, retirement distributions and investment income all go untaxed at the state level for tax year 2026. Alaska is also the only state that pays residents rather than taxes them: the Permanent Fund Dividend, funded by oil investment earnings, sent $1,000 to every eligible resident in 2025 and $1,702 in 2024. The dividend is taxable federally but not by the state. The trade-off is a cost of living roughly 27% above the national average, driven by shipping, energy and housing costs.

With no income tax there is no state standard deduction, personal exemption or itemized deduction, and no state return to file. Alaska does not offer a state earned income credit or child credit; the Permanent Fund Dividend functions as the state's universal cash payment instead. Federal deductions and credits apply as normal, and the dividend counts as federal taxable income for every recipient, including children.

No city or borough in Alaska levies an income or wage tax, and state law does not authorize local income taxes. The only local taxes that reach households are sales taxes, property taxes and, in some places, bed taxes and fuel taxes.

Alaska has no state sales tax, but unlike Delaware, Oregon or New Hampshire it allows local governments to levy their own, and more than 100 boroughs and cities do, at rates typically between 2% and 7.5%. Juneau charges 5%, Wasilla 2.5%. Anchorage and Fairbanks, home to roughly half the state's population, have no sales tax at all. Groceries are taxable in localities that impose one.

Property taxes are near or slightly above the national average where they exist — Anchorage homeowners pay an effective rate around 1.2–1.5% of market value, and the city relies on property tax for most of its budget in the absence of a sales tax. Much of rural Alaska sits in the unorganized borough and pays no property tax whatsoever. A statewide mandatory exemption removes the first $150,000 of assessed value for homeowners 65 and older and for disabled veterans.

Alaska taxes no retirement income of any kind: Social Security, private and public pensions, 401(k) and IRA withdrawals, military retirement, annuities and investment income are all untouched by the state. Retirees also collect the annual Permanent Fund Dividend, provided they maintain full-year residency and do not leave the state for more than 180 days a year outside a few allowed reasons. The $150,000 senior property tax exemption is the other major benefit. Against those advantages, retirees weigh limited health-care infrastructure outside Anchorage, high grocery and heating costs, and long winters that push many Alaskan retirees to split time with the Lower 48 — which can jeopardize dividend eligibility.

Every earner profile keeps 100% of gross pay at the state level, so the winners are those whose income is high enough that the tax savings outweigh Alaska's cost of living: a $150,000 W-2 earner saves roughly $7,000–$13,000 a year versus Oregon or California. Remote workers paid by out-of-state employers owe nothing to Alaska, though employers in convenience-rule states like New York may still withhold. Retirees drawing pensions and IRAs pay zero state tax and collect the dividend. Lower earners gain less, since the cost of living erodes a bigger share of a modest paycheck.

The median household income in Alaska is $65,000, which is $54,408 a year ($4,534 a month) after all taxes. That is close to the national median. After adjusting for cost of living, the purchasing power of that take-home is equivalent to $42,841 in an average-cost area.

Alaska ranks #1 of 50 for raw take-home pay and #47 for cost-adjusted purchasing power at $100,000. The 46-place gap between the two reflects an above-average cost of living that erodes what the take-home actually buys. The best state (Alaska) leaves $79,125; the worst (Oregon) leaves $70,932. Alaska is $0 behind the leader.

Alaska Tax Questions, Answered

Compare Alaska with Other West States

Specific Salaries in Alaska