AK
✓ No State Income Tax

Alaska Paycheck Calculator

See exactly what you take home after federal taxes, Social Security, and Medicare. Updated for 2026.

State tax: None SS: 6.2% Medicare: 1.45% 2026 brackets
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1099 freelancer note: You owe both halves of Social Security & Medicare — that's 15.3% self-employment tax on top of income tax. Quarterly estimated payments due Apr 15, Jun 16, Sep 15, Jan 15.
✓ Alaska has no state income tax Alaska has no state income tax — one of only 9 states. Residents keep more of every paycheck compared to most other states.

Why Alaska Has No State Income Tax

Alaska is one of nine states with no state income tax. Workers in Alaska pay only federal income tax, Social Security (6.2%), and Medicare (1.45%) on their wages — nothing extra to the state. This means every dollar you earn is taxed only at the federal level, resulting in meaningfully higher take-home pay compared to most other states.

The no-income-tax status makes Alaska particularly attractive for high-income earners and retirees. With federal taxes already significant, eliminating the state layer can save $2,000–$15,000+ per year depending on income level.

How much you save vs high-tax states

Washington
No income tax
Also no state tax
Oregon
Up to 9.9%
High earner burden
California
Up to 13.3%
Highest in US
Nevada
No income tax
Also no state tax

What taxes do Alaska workers actually pay?

Alaska W-2 employees only have three taxes withheld: federal income tax (10%–37% depending on bracket), Social Security at 6.2% on the first $184,500 of wages, and Medicare at 1.45% on all wages (plus 0.9% on wages above $200,000). There is no Alaska state income tax withholding on paychecks and no Alaska individual income tax return to file.

Alaska freelancers and 1099 contractors pay federal income tax plus self-employment tax of 15.3% — covering both halves of Social Security and Medicare. Half of self-employment tax is deductible from federal adjusted gross income. Alaska's lack of state income tax makes it one of the most financially advantageous states for self-employed workers.

Alaska paycheck tips for 2026

  • No state income tax: Alaska has no state income tax and no state sales tax — the only state in the nation with neither. Your paycheck is subject only to federal taxes.
  • Permanent Fund Dividend: Alaska residents may receive an annual Permanent Fund Dividend (PFD) — a share of Alaska's oil revenues. The PFD is taxable as federal income but creates no state income tax obligation.
  • Local taxes: Some Alaskan municipalities (like Juneau and Kodiak) levy local sales taxes, but none levy local income taxes. Your paycheck is unaffected by city-level income taxes.
  • Freelancers: Alaska freelancers only file federal estimated tax returns (Form 1040-ES). There is no Alaska state estimated tax requirement.

Frequently asked questions

No. Alaska has no state income tax and has not had one since 1980 when it was repealed. Alaska funds its government primarily through oil and gas revenues. Workers in Alaska pay only federal income tax, Social Security, and Medicare on their wages.
For a single W-2 employee earning $75,000 in Alaska in 2026: federal income tax is approximately $10,294, Social Security is $4,650, and Medicare is $1,088. Total deductions are roughly $16,032, leaving an annual take-home of approximately $58,968, or about $2,268 bi-weekly. There is no Alaska state income tax.
The Alaska Permanent Fund Dividend (PFD) is taxable at the federal level as ordinary income. You must report it on your federal Form 1040. However, because Alaska has no state income tax, you owe no state tax on the PFD. The amount varies each year; recent dividends have ranged from $1,000 to $3,284.
Alaska has no statewide sales tax — making it one of two states (with New Hampshire) to have neither a state income tax nor a state sales tax. However, some Alaskan municipalities levy local sales taxes ranging from 1% to 7.5%, so the tax-free status depends on your city of residence.
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