Does Alaska have a state income tax?

No. Alaska is one of nine US states with no individual income tax on wages. The Alaska Department of Revenue does not levy a personal income tax. Your Alaska income tax liability is $0 at the state level; only federal income tax and FICA apply.

What is the total annual tax burden for an Alaska resident earning $75,000?

A single filer with $75,000 gross income in Alaska owes roughly $5,765 in federal income tax (after the $16,100 standard deduction) plus $5,738 in FICA (6.2% Social Security + 1.45% Medicare) in 2026. Total federal taxes are about $11,503, or roughly 15.3% of gross income. State income tax: $0.

Is the Alaska Permanent Fund Dividend taxable?

The PFD is not subject to Alaska state tax (Alaska has none), but it is taxable as ordinary income on your federal return. If you receive a $1,500 PFD and are in the 22% federal bracket, you owe roughly $330 in additional federal tax on the dividend. The PFD is reported on Form 1099-MISC.

Do Alaska residents still file a federal tax return?

Yes. The absence of a state income tax means no Alaska state return is required, but every Alaska wage earner still files a federal Form 1040 and pays federal income tax, Social Security, and Medicare. The Permanent Fund Dividend must also be reported as federal income.

Are there any local income taxes in Alaska?

No. No Alaska city or borough levies a local income tax on wages. Some municipalities charge local sales taxes of up to 7.5%, but there is no local payroll or earned income tax anywhere in Alaska.

How much more does an Alaska resident keep vs. an Oregon resident on $100,000?

An Alaska single filer earning $100,000 keeps roughly $6,000–$9,000 more per year than a comparable Oregon resident, because Oregon taxes income at up to 9.9% on that income level. Oregon's effective rate on $100,000 is around 7–8%, meaning an Oregonian loses $7,000–$8,000 in state income tax that an Alaskan keeps entirely.

How is this Alaska income tax calculator different from the paycheck calculator?

This calculator focuses on your full-year annual tax liability — useful for tax planning, comparing job offers across states, or estimating what you owe at filing time. The paycheck calculator shows per-paycheck withholding and take-home pay. Both use the same underlying tax engine, presenting different views of your tax situation.

Alaska Income Tax Calculator 2025 & 2026

Estimates federal income tax, FICA, and annual tax liability for Alaska — $0 state income tax.

How to Use This Alaska Income Tax Calculator

This Alaska income tax calculator estimates your annual federal tax liability for 2025 and 2026. Enter your gross wages, filing status, and any pre-tax deductions or credits above. Because Alaska levies no state income tax, the state line in your results will always show $0 — your liability consists entirely of federal income tax and FICA (Social Security and Medicare).

This tool focuses on your annual tax picture — total taxes owed for the year, effective rates, and net income. For a per-paycheck breakdown, use the Alaska paycheck calculator.

Why Alaska Has No State Income Tax

Alaska is one of nine US states with no individual income tax on wages. Unlike most states, Alaska also imposes no statewide sales tax — making it one of the most tax-friendly states for individual earners in the nation. The other no-income-tax states are Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming.

Alaska funds state government primarily through:

Oil and gas severance taxes— Alaska's budget is heavily dependent on petroleum revenues. The production tax on North Slope oil has historically provided over half of state general fund revenue.
Alaska Permanent Fund earnings — the sovereign wealth fund, seeded with oil revenues and invested globally, generates returns that fund both government operations and the annual Permanent Fund Dividend paid to residents.
Federal transfers — Alaska receives disproportionately large federal outlays due to its size, military installations, and remote communities.

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Federal Income Tax — The Only Income Tax Alaskans Owe

Federal income tax uses a progressive bracket system: each tier of income is taxed at an increasing rate, but only the dollars within each bracket are taxed at that rate. For a single Alaska filer in 2026:

10% on the first $12,400 of taxable income
12% on $12,400–$50,400
22% on $50,400–$105,700
24% on $105,700–$201,775
32% on $201,775–$256,225
35% on $256,225–$640,600
37% above $640,600

Taxable income is gross income minus the standard deduction ($16,100 for single filers in 2026) or your itemized deductions if those are higher. Your marginal rate is the top bracket you reach; your effective rate is always lower because lower-tier income is taxed at lower rates.

FICA Taxes — Social Security and Medicare

FICA taxes apply to every Alaska paycheck regardless of state of residence. They are federal taxes, not state taxes.

Social Security: 6.2% on wages up to $176,100 (2025) or $184,500 (2026). No further withholding once you hit the wage base.
Medicare: 1.45% on all wages with no cap.
Additional Medicare: 0.9% on wages above $200,000 (single) or $250,000 (married jointly) — employee only, no employer match.

Self-employed Alaskans pay the full 15.3% self-employment tax (both halves) on net earnings, but can deduct the employer-equivalent half from gross income to reduce federal income tax.

How Much More Alaskans Keep vs. High-Tax States

Living in Alaska can mean keeping 3–10% more of your gross income compared to a high-tax state. A few annual examples for a single filer in 2026:

vs. Oregon ($100,000): An Oregon resident at this income level pays roughly $7,000–$8,000 in OR state income tax (top rate 9.9%). An Alaskan pays $0 in state tax and keeps the entire amount.
vs. California ($100,000): A California resident pays roughly $5,000–$6,300 in CA state tax (6–9.3% brackets). Compare using the income tax calculator set to California.
vs. Minnesota ($100,000): Minnesota charges up to 9.85% — roughly $6,000–$7,000 in state tax on $100,000 gross income. Alaska residents keep all of that.

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How to Reduce Your Alaska Annual Tax Liability

Because Alaska has no state income tax, every pre-tax deduction saves only federal tax — but federal rates reach 22–37%, so the savings are still meaningful.

Maximize traditional 401(k) contributions — the 2026 limit is $23,500 ($31,000 if age 50+). At the 22% bracket, maxing out a 401(k) reduces federal income tax by $5,170/year.
Contribute to an HSA — if enrolled in a high-deductible health plan, the 2026 limit is $4,300 (self-only) or $8,550 (family). HSA contributions are pre-tax, growth is tax-free, and qualified withdrawals are tax-free.
Use a Dependent Care FSA — up to $5,000 per household in pre-tax dollars for childcare or elder care expenses.
Plan for the Permanent Fund Dividend — since the PFD is taxable federal income, consider adjusting your W-4 withholding or making an estimated tax payment if your PFD will push you into a higher bracket.
Adjust your W-4 — if you regularly receive a large federal refund, update your W-4 to reduce withholding and receive more in each paycheck throughout the year.

Tax Disclaimer

This calculator provides estimates for informational purposes only. It is not tax advice. Federal tax brackets, FICA wage bases, standard deduction amounts, and credit phase-out thresholds can change annually. Results reflect 2025 and 2026 tax-year parameters based on IRS publications current at time of publication. Consult a qualified tax professional or CPA for guidance on your specific situation.

Sources & References

IRS Publication 17: Your Federal Income Tax — Internal Revenue Service
Social Security Contribution and Benefit Base — Social Security Administration
Alaska Department of Revenue — No Individual Income Tax — Alaska Department of Revenue

Alaska Income Tax Calculator