Calculate your take-home pay in The Last Frontier. Alaska has no state income tax.
Alaska is one of nine states with no individual income tax. Alaska also has no state sales tax, though some local municipalities levy their own. The state funds government primarily through oil revenues from the Trans-Alaska Pipeline. Alaska residents may also receive an annual Permanent Fund Dividend (PFD) from the Alaska Permanent Fund.
| Item | Per Paycheck | Monthly | Annual |
|---|---|---|---|
| Gross Pay | - | - | - |
| Federal Income Tax | - | - | - |
| Alaska State Tax | $0 | $0 | $0 |
| Social Security | - | - | - |
| Medicare | - | - | - |
| 401(k) + Pre-Tax | - | - | - |
| Take-Home Pay | - | - | - |
Alaska has no state income tax. This calculator estimates your take-home pay after federal income tax, state income tax, Social Security, Medicare, and any pre-tax deductions like 401(k) contributions. Enter your salary or hourly wage above to see a detailed breakdown of your paycheck.
Alaska is one of nine states with no income tax, meaning your entire paycheck is free from state withholding. Additionally, Alaska residents receive an annual Permanent Fund Dividend (PFD) from oil revenue, which has ranged from $1,000 to $3,200 in recent years. Alaska also has no state sales tax, though some municipalities charge local sales tax.
Regardless of state taxes, all Alaska workers pay federal income tax using the 2026 brackets: 10% on the first $11,925 of taxable income (single), 12% up to $48,475, 22% up to $103,350, 24% up to $197,300, 32% up to $250,525, 35% up to $626,350, and 37% on income above that. The standard deduction is $15,000 for single filers and $30,000 for married filing jointly in 2026.
All workers in Alaska pay Social Security tax at 6.2% on wages up to $176,100 (2026) and Medicare tax at 1.45% on all wages. An additional 0.9% Medicare surtax applies to wages over $200,000 for single filers. These federal payroll taxes apply uniformly regardless of which state you live in.
Pre-tax deductions reduce your taxable income for both federal and state purposes. Contributing to a 401(k) (up to $24,500 in 2026, plus $8,000 catch-up if 50+) lowers both your federal and AK state tax bill. Health Savings Account (HSA) contributions ($4,300 individual, $8,550 family in 2026) are also pre-tax. Review your W-4 withholding: if you receive a large refund each year, you may be overwithholding, which means less money in each paycheck. The Tax Bracket Calculator shows your federal marginal and effective rates.
Alaska is unique: no income tax and no sales tax at the state level (though some municipalities levy local sales tax). The Alaska Permanent Fund Dividend also pays residents an annual check from oil revenues, averaging $1,000-2,000 in recent years. The trade-off is a higher cost of living, especially for housing and groceries, driven by the state's remote geography.
Alaska's Permanent Fund Dividend is essentially a negative tax: the state pays you to live there. The 2024 PFD was $1,702 per person. For a family of four, that's $6,808/year in cash. Combined with no income tax and no state sales tax, Alaska's net tax burden can actually be negative depending on your income and family size.