Alaska Take-Home Pay Calculator
No State Income TaxEstimate your net paycheck after federal taxes, FICA, and Alaska state income tax.
Last updated: April 2026
Alaska Income Tax
Alaska has no state income tax. Residents also receive an annual Permanent Fund Dividend.
Alaska State Income Tax: What You Need to Know
Alaska has no state income tax. Residents also receive an annual Permanent Fund Dividend.
Alaska is one of nine states with no state income tax — and arguably the most unusual among them. There is no Alaska income tax withholding from paychecks; workers only pay federal income tax and FICA. What makes Alaska unique is the Alaska Permanent Fund Dividend (PFD): an annual cash payment to eligible Alaska residents funded by state oil revenues. The 2024 PFD was $1,702 per eligible resident. For a family of four, that's nearly $6,800 per year in direct payments — a partial offset to Alaska's notably high cost of living.
Living in a no-income-tax state gives you an immediate take-home pay advantage compared to workers in high-tax states. A worker earning $80,000 in Alaska takes home approximately $6,000–$8,000 more per year than an equivalent worker in California or Oregon.
However, states without income taxes often offset revenue through higher property taxes, sales taxes, or fees. When comparing the overall tax burden between states, consider all taxes — not just income tax.
Alaska Take-Home Pay Examples (2026, Single Filer)
Estimates based on standard deduction, no pre-tax deductions. Last updated: April 2026.
| Salary | Federal Tax | State Tax | FICA | Take-Home |
|---|---|---|---|---|
| $40,000 | $3,167 | $0 | $3,060 | $33,773 |
| $60,000 | $6,617 | $0 | $4,590 | $48,793 |
| $80,000 | $10,817 | $0 | $6,120 | $63,063 |
| $100,000 | $15,617 | $0 | $7,650 | $76,733 |
Frequently Asked Questions: Alaska Taxes
Does Alaska have a state income tax?
No. Alaska has no personal income tax on wages, salaries, or investment income. Alaska workers only pay federal income tax and FICA (Social Security and Medicare). Alaska funds its state government primarily through taxes on oil and gas production rather than personal income.
What is the Alaska Permanent Fund Dividend?
The Alaska Permanent Fund Dividend (PFD) is an annual cash payment made to eligible Alaska residents, funded by returns from the Alaska Permanent Fund — a sovereign wealth fund built from oil revenues. The amount varies annually based on fund returns and legislative action. The 2024 PFD was $1,702 per eligible resident. To qualify, you must have lived in Alaska for a full calendar year and intend to remain a resident.
Does Alaska have a city or local income tax?
No. Alaska municipalities do not impose a local income tax on wages. Some Alaska municipalities levy sales taxes or property taxes, but there is no wage-based local income tax anywhere in the state.
Is Alaska actually a low-tax state despite having no income tax?
For income taxes, yes — Alaska has the lowest state and local tax burden in the country. However, Alaska's cost of living is significantly higher than the national average, particularly for housing, food, and energy in rural areas. The no-income-tax advantage is partly offset by higher prices. The PFD helps offset costs for long-term residents.
What taxes do Alaska workers actually pay?
Alaska workers pay federal income tax (10–37% progressive brackets), Social Security (6.2% up to $176,100), and Medicare (1.45%). That's it — no state income tax, no local income tax. Some municipalities levy sales taxes, but those affect purchases, not your paycheck.
What is Alaska's minimum wage in 2026?
Alaska's minimum wage is $11.73/hour in 2026, indexed annually to inflation under a ballot measure passed in 2014. This is substantially above the federal minimum of $7.25. Alaska's minimum wage applies to most employers and adjusts each January based on the Consumer Price Index.