Alaska Paycheck Calculator

Alaska does not impose a state income tax on wages. Residents only pay federal income tax and FICA (Social Security 6.2% + Medicare 1.45%). This makes Alaska one of the most tax-friendly states for workers.

In addition to Alaska state tax, all workers pay federal income tax (10%—7% progressive brackets) and FICA taxes (7.65% combined). Use our calculator above to see your complete tax breakdown.

Alaska is one of nine U.S. states with no state income tax, and it is the only state that does not levy any property tax or sales tax at the state level. The Alaska Department of Revenue administers state taxes. Alaska's government is heavily funded by oil revenues, and the state has one of the lowest overall tax burdens in the nation.

Alaska Permanent Fund Dividend: One of Alaska's most unique features is the Alaska Permanent Fund (APF), which invests oil revenues for the benefit of residents. Every eligible Alaskan receives an annual dividend payment, which in recent years has ranged from approximately $1,000 to $3,000 per person. This dividend is taxable for federal purposes but not subject to Alaska state income tax.

Local Taxes: While there is no state-level property tax, some local boroughs may levy property taxes for local services. The state sales tax rate is 0%, though some municipalities have local sales taxes (typically 2-5%) on certain goods and services.

Retirement Considerations: Alaska is highly attractive for retirees due to the lack of state income tax. Social Security benefits, pensions, 401(k) distributions, and IRA withdrawals are all tax-free at the state level. There is no estate or inheritance tax.

Alaska is unique among U.S. states —not only does it have zero state income tax, but residents actually receive an annual dividend check from the Alaska Permanent Fund. The state's economy is heavily driven by oil, fishing, and tourism.