How Alaska taxes your paycheck in 2026
Alaska is one of nine states that levy no state income tax on wages. Your paycheck is reduced only by federal income tax and FICA. On top of that, every Alaska worker pays federal income tax plus 6.2% Social Security (on the first $184,500 of 2026 wages) and 1.45% Medicare with no cap. This calculator applies all of it at once, so the take-home figure is the real one.
What Alaska takes instead
Alaska is the only state with no state income tax and no statewide sales tax. Municipalities can levy their own sales tax, however — commonly 2%–7% depending on the borough — so your cost of living varies more by town than by tax bracket.
The Permanent Fund Dividend and your tax return
Alaska residents receive an annual Permanent Fund Dividend funded by state oil revenue. The 2025 dividend was $1,000 per eligible resident, including children. Alaska does not tax it — but the IRS does. The full amount, including any energy-relief portion, is federally taxable and reported to you on Form 1099-MISC, which you enter on Schedule 1 (Form 1040), line 8g.
This matters for your paycheck planning: the PFD is untaxed at source, so it can push you into a higher federal bracket at filing time if your wages already sit near a bracket edge. Adding roughly $1,000 per household member is worth checking before you set your W-4 withholding.
What living in Alaska saves you
State income tax a single filer would owe on a $75,000 salary elsewhere — money a Alaska worker keeps outright:
| If you lived in | State income tax on $75k | Your Alaska saving |
|---|---|---|
| California | $2,775 | $2,775 |
| Oregon | $5,733 | $5,733 |
| Minnesota | $3,577 | $3,577 |
| Alaska | $0 | — |
Income tax only. Sales and property taxes claw back part of this in most no-income-tax states.
Federal taxes on top
Every Alaska worker also pays federal income tax plus 6.2% Social Security and 1.45% Medicare. Those rules are identical in all 50 states — see the main paycheck calculator for how FICA, the wage base, pre-tax deductions and FICA-exempt occupations work.
Nearby states
Compare Alaska with Washington, Oregon, Hawaii, Nevada — or see the full list of all 50 states and DC.