Alaska has no state income tax
Alaska is one of nine states that do not tax wages. Your employer withholds only federal income tax, Social Security and Medicare, plus the state payroll contributions listed below, so a Alaska paycheck is usually several percent larger than the same salary in a state with an income tax.
- Alaska has no state income tax on wages, but it is one of only three states (with New Jersey and Pennsylvania) where employees pay into unemployment insurance: 0.5% of the first $54,200 of 2026 wages.
- The Permanent Fund Dividend paid to residents is not taxed by Alaska, though it counts as income on your federal return.
The other states without a tax on wages are Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington and Wyoming. If you live in Alaska but work in a state that taxes income, that state usually taxes your wages there.
Alaska payroll deductions
Besides income tax, Alaska requires these contributions from employees in 2026. The calculator includes them automatically.
| Program | Employee rate | Applies to |
|---|---|---|
| Alaska unemployment insurance (employee share) | 0.5% | First $54,200 of wages |
- AK UI: 0.5% of the first $54,200 of wages in 2026, so at most $271 a year.
Local income taxes in Alaska
Alaska has no local income taxes. Some boroughs and cities charge sales or property taxes instead.
Example: $60,000 salary in Alaska
A single filer earning $60,000 a year, paid every two weeks, with a standard 2026 W-4 and no 401(k) or health deductions:
| Every two weeks | Per paycheck | Per year |
|---|---|---|
| Gross pay | $2,307.69 | $60,000.00 |
| Federal income tax | -$193.08 | -$5,020.00 |
| Social Security (6.2%) | -$143.08 | -$3,720.00 |
| Medicare (1.45%) | -$33.46 | -$870.00 |
| AK UI | -$10.42 | -$271.00 |
| Take-home pay | $1,927.65 | $50,119.00 |
With no Alaska income tax, the only state deduction is $271.00 a year of payroll contributions. All taxes together take 16.5% of pay. Federal withholding is the 2026 single schedule: $60,000 less the $8,600 allowance gives $51,400, taxed at $1,240 plus 12% above $19,900, or $5,020 a year.
Take-home pay in Alaska at different salaries
Yearly take-home pay for a single filer in Alaska, paid every two weeks, with no pre-tax deductions or local tax. For a married couple filing jointly on $120,000, take-home pay is about $100,509 a year (16.2% in taxes).
| Salary | Alaska tax | Take-home per year | Per paycheck |
|---|---|---|---|
| $30,000 | $150 | $26,135 | $1,005.19 |
| $45,000 | $225 | $38,113 | $1,465.87 |
| $60,000 | $271 | $50,119 | $1,927.65 |
| $80,000 | $271 | $64,839 | $2,493.81 |
| $100,000 | $271 | $78,909 | $3,034.96 |
| $150,000 | $271 | $113,520 | $4,366.15 |
| $250,000 | $271 | $182,911 | $7,035.04 |
The Alaska tax column includes state payroll contributions as well as income tax.
How the Alaska paycheck estimate works
Federal income tax follows IRS Publication 15-T for 2026: your paycheck is annualized, an allowance for the standard deduction is taken off, the 2026 withholding schedule for your filing status is applied, and W-4 credits and extra withholding are added back per paycheck. Social Security is 6.2% of wages up to $184,500 and Medicare 1.45%, plus 0.9% on wages over $200,000.
No Alaska income tax is calculated. AK UI is worked out on wages after pre-tax health premiums.
Take-home = Gross − pre-tax deductions − federal tax − Social Security − Medicare − AK UI