How Much Is Alaska State Income Tax in 2026?

Quick Answer: Alaska Income Tax at a Glance

Alaska is one of nine states with no income tax on wages — and it has been that way since 1980. Your paycheck here is reduced only by federal income tax and FICA. Estimate your 2026 take-home pay below.

Why Alaska has no income tax

Alaska repealed its personal income tax in 1980 after oil revenues began funding most of state government. It remains the only state with neither a statewide income tax nor a statewide sales tax, although some municipalities and boroughs levy their own local sales taxes. Because the state takes nothing from your wages, an Alaskan earning $75,000 keeps thousands of dollars more per year than a worker in a high-tax state on the same salary.

The Permanent Fund Dividend: a state that pays you

Alaska is unique in another way: the Permanent Fund Dividend (PFD) pays eligible residents an annual dividend from the state's oil-royalty investment fund. The amount changes every year depending on fund performance and legislative decisions. The PFD is taxable on your federal return, but Alaska itself doesn't tax it — there's no state income tax to tax it with.

What still comes out of your paycheck

Only two things: federal income tax (progressive brackets with the 2026 standard deduction) and FICA — Social Security at 6.2% up to the annual wage base and Medicare at 1.45%, plus the 0.9% Additional Medicare Tax on earnings above $200,000 for single filers. This calculator estimates both line items. Local sales taxes, where they exist, affect your spending, not your paycheck.

Take-Home Pay by Income Level in Alaska

The table below shows estimated annual take-home pay for a single filer with no credits or pre-tax contributions. It includes federal income tax, FICA, and Alaska state income tax.

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