Results are estimates for educational purposes only. Based on 2026 IRS federal brackets and Alaska state tax rates. Always consult a qualified tax professional.
Alaska income tax overview
Alaska has no state personal income tax and also has no statewide sales tax, making it one of the most tax-friendly states in the country for residents. The state funds government primarily through oil revenue, and uniquely pays residents an annual dividend — the Permanent Fund Dividend — from the state's oil wealth savings fund, typically ranging from around $1,000 to over $3,000 per resident per year depending on fund performance. Some Alaska municipalities do levy local sales taxes, but there is no income tax at any level of government in the state. Alaska's remote geography and harsh climate mean the cost of living, particularly for goods that must be shipped in, can be high in many areas, which somewhat offsets the tax advantages for residents outside the major cities.
2026 Alaska income tax rates
🐻 Alaska has no state income tax. Residents only pay federal income tax and FICA taxes — and receive an annual Permanent Fund Dividend.
Worked example: $75,000 salary in Alaska
A $75,000 salary in Alaska results in $0 state income tax, plus $12,580 in federal income tax, $4,650 in Social Security, and $1,088 in Medicare. Your annual take-home pay is approximately $56,682, or $2,180 bi-weekly — plus an annual Permanent Fund Dividend payment.
Key facts: No state income tax · No statewide sales tax (some local sales taxes apply) · Annual Permanent Fund Dividend paid to residents
Frequently asked questions — Alaska income tax
The Permanent Fund Dividend is an annual cash payment made to eligible Alaska residents from the state's oil wealth savings fund. The amount varies year to year based on fund performance, typically ranging from roughly $1,000 to over $3,000 per person.
Alaska has no statewide sales tax, though many individual municipalities and boroughs levy their own local sales taxes, which can range up to around 7% in some areas.
No. With no state income tax of any kind, Alaska does not tax Social Security, pensions, 401k withdrawals, or any other retirement income.
Alaska's remote geography means many goods must be shipped or flown in at significant cost, which drives up prices for groceries, fuel, and other necessities, particularly in rural and remote communities outside Anchorage.
No. No Alaska municipality levies a local income tax — only some have local sales taxes.
Compare Alaska to other states
Use our US income tax calculator to compare your take-home pay across all 50 states. You may be surprised how much location affects your net income.