Alaska rules
Why Alaska paychecks keep more — and where the state gets its money
Alaska is one of just nine states with no personal income tax, and uniquely it also has no statewide sales tax. For a salaried worker that means the only deductions on your stub are federal: income tax, Social Security and Medicare.
Where Alaska's revenue comes from
Instead of taxing wages, Alaska funds state government largely through oil and gas royalties and the earnings of the Alaska Permanent Fund. Residents even receive an annual Permanent Fund Dividend (PFD) — a share of investment earnings paid out each year. The PFD is taxable federally but never taxed by the state.
Local sales taxes still apply
While there is no statewide sales tax, many Alaska boroughs and cities levy their own local sales taxes (often 1%–7%). The cost of living — especially groceries, fuel and housing in remote areas — can also offset some of the income-tax savings.
Comparing Alaska to other states
Run the same salary through a high-tax state to see the gap — try California or New York — or compare with fellow no-tax states Washington and Wyoming.
Questions
Alaska salary calculator FAQ
Does Alaska have a state income tax?
No. Alaska is one of nine U.S. states with no personal income tax — and it has no statewide sales tax. Your paycheck is reduced only by federal income tax, Social Security (6.2%) and Medicare (1.45%).
How much is taken out of a paycheck in Alaska?
Only federal taxes apply in Alaska: federal income tax based on your bracket, 6.2% Social Security and 1.45% Medicare. On a $75,000 single salary, total deductions are roughly 18% to 20%.
What is the take-home pay on $100,000 in Alaska?
A single filer earning $100,000 in Alaska takes home roughly $79,000 a year, since there is no state income tax — only federal tax and FICA are withheld.
Does the Alaska Permanent Fund Dividend get taxed?
The annual Permanent Fund Dividend (PFD) paid to residents is not subject to any Alaska state tax, but it is taxable as income on your federal return. This calculator covers wage income, not the PFD.
- Sources: Alaska Department of Revenue (no personal income tax) · IRS Rev. Proc. 2025-32 · SSA 2026 wage base.
- 🔄 Last updated June 9, 2026 · Tax year 2026
← Back to the national salary calculator · Compare: Washington · Wyoming · California
