How Alaska taxes wages
Alaska has no state income tax or statewide sales tax, and pays residents an annual Permanent Fund Dividend.
Alaska is one of 9 states with no tax on wages, along with Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming.
Example: $65,000 salary, single filer
On a $65,000 salary, Alaska state income tax is $0. You still pay federal income tax and FICA (Social Security and Medicare).
Calculators for Alaska
- Paycheck calculator
Take-home pay after federal income tax, Social Security, and Medicare, with Alaska selected: no state income tax to withhold.
- Tips and overtime calculator
Your federal deduction for qualified tips and overtime, with Alaska selected. The savings are federal only, since Alaska doesn’t tax wages.
- Senior deduction calculator
A federal deduction of up to $6,000 for each person 65 or older, after the income phase-out.
- Car loan interest calculator
A federal deduction for interest on a loan for a new, U.S.-assembled vehicle.
Does Alaska tax tips and overtime?
Alaska doesn’t tax wages, so tips and overtime aren’t subject to state income tax either. The federal deduction for qualified tips and overtime (Schedule 1-A) still lowers your federal income tax.
Source: Alaska Tax Facts. Checked . See how every state treats tips and overtime
Alaska vs. neighboring states
Alaska shares no land border with another state, so there is no cross-border commute to compare.
Frequently asked questions
Does Alaska have a state income tax?
No. Alaska doesn’t tax wages, so no state income tax is withheld from your paycheck in 2026. Alaska has no state income tax or statewide sales tax, and pays residents an annual Permanent Fund Dividend.
You still pay federal income tax, Social Security, and Medicare on your wages. The paycheck calculator with Alaska selected shows your take-home pay after those.
Official source
For forms, exact brackets, and filing deadlines, go to the official Alaska tax agency website.
Related states
- FloridaNo state income tax
- NevadaNo state income tax
- New HampshireNo state income tax
- South DakotaNo state income tax