Alaska Paycheck Calculator 2026 - No State Income Tax

Calculate Your Alaska Take-Home Pay - No State Income Tax

One of the biggest advantages of working in Alaska is that there's no state income tax. This means your Alaska take-home pay is higher than in most other states because you only pay federal taxes and FICA (Social Security and Medicare). Alaska is one of only 9 states with no income tax, along with Florida, Nevada, Washington, Wyoming, South Dakota, Tennessee, New Hampshire, and Texas.

For example, someone earning $85,000 in Anchorage takes home approximately $65,000-$67,000 after federal taxes and FICA. The same salary in California would result in about $58,000-$61,000 take-home pay due to California's state income tax (up to 13.3%). That's a $7,000-$9,000 annual difference just from state taxes alone.

Our Alaska paycheck calculator helps you determine your exact Alaska take-home pay. Because we maintain federal, FICA, and Alaska withholding tables for every filing status, the calculator instantly shows both per-paycheck and annual net pay. Toggle between salary and hourly pay, include pre-tax deductions such as 401(k), HSA, or health insurance, and watch the tool recompute your Alaska take-home pay immediately.

How to Use the Alaska Paycheck Calculator

Using our Alaska paycheck calculator is simple. Follow these steps to calculate your Alaska take-home pay:

1. Enter your income: Select salary or hourly pay and enter your gross income. For example, if you earn $75,000 per year or $38 per hour in Alaska, enter that amount.
2. Select Alaska: Choose Alaska as your state (using ?state=AK in the URL fills it in automatically). This ensures no state income tax is applied.
3. Add your details: Pick your pay frequency (weekly, bi-weekly, semi-monthly, or monthly) and filing status (single, married filing jointly, etc.), then add any 401(k), HSA, or health insurance deductions.
4. Get your results: Click "Calculate My Paycheck" and review the detailed breakdown showing your Alaska take-home pay, including federal income tax, FICA taxes, and your final net pay (no state tax!).

The Alaska paycheck calculator is especially useful for comparing job offers, planning your budget in cities like Anchorage, Fairbanks, or Juneau, or understanding how pre-tax deductions affect your Alaska take-home pay. With no state income tax, you maximize your take-home pay compared to states with income taxes.

Why Alaska Has No State Income Tax

Alaska is unique among U.S. states in that it has no state income tax and no sales tax, primarily due to revenue from oil production through the Alaska Permanent Fund. This fund, established in 1976, invests a portion of oil revenues and provides annual dividend payments to Alaska residents. The state government also receives significant revenue from oil taxes and royalties, eliminating the need for personal income tax.

This tax structure makes Alaska extremely attractive for workers who want to maximize their take-home pay. However, it's important to note that Alaska has a higher cost of living in many areas, especially for housing, groceries, and utilities in remote locations. The lack of state income tax helps offset these higher costs.

Additionally, Alaska residents receive annual Permanent Fund Dividend (PFD) payments, which vary each year based on fund performance and legislative decisions. While these payments don't directly affect your paycheck calculations, they provide additional income that can help offset Alaska's higher cost of living.

Alaska Local Taxes and Your Take-Home Pay

When calculating your Alaska take-home pay, it's important to note that Alaska does not allow local income taxes at the city or county level. Unlike states like Pennsylvania or Ohio, Alaska only collects federal taxes and FICA, which simplifies your Alaska paycheck calculation significantly.

However, Alaska does have property taxes and certain local assessments. While these don't directly affect your paycheck, they're important to consider when evaluating the total cost of living in Alaska. Your Alaska paycheck calculator results will show your take-home pay after federal income tax and FICA taxes only—no state or local income taxes.

This makes Alaska an extremely attractive state for workers who want to maximize their take-home pay, as the absence of state income tax means more money in your pocket each paycheck. This is especially valuable for high earners and those working in Alaska's oil, fishing, or tourism industries.

Understanding Alaska's Cost of Living

While Alaska has no state income tax, the cost of living in Alaska is significantly higher than the national average, particularly in remote areas. Housing costs in Anchorage are comparable to or slightly above national averages, but in rural areas, costs can be much higher due to transportation and construction challenges.

Groceries, utilities, and transportation costs are typically 10-30% higher than the national average, depending on location. However, the lack of state income tax can help offset these higher costs, especially for higher earners. For example, someone earning $100,000 in Alaska takes home approximately $75,000 after federal taxes and FICA, compared to about $68,000-$70,000 in California.

When evaluating job offers in Alaska, consider both the higher take-home pay due to no state income tax and the higher cost of living. The Alaska paycheck calculator shows your take-home pay, but you should also research housing, transportation, and living costs in your specific Alaska location.

Example: Alaska Paycheck Calculation

Let's calculate the Alaska take-home pay for someone earning $88,000 per year in Alaska, filing as married filing jointly, with a 6% 401(k) contribution:

• Gross annual salary: $88,000
• 401(k) contribution (6%): $5,280 (pre-tax)
• Federal taxable income: ~$73,720 (after standard deduction)
• Federal income tax: ~$7,200
• FICA taxes (Social Security + Medicare): $6,732
• Alaska state tax: $0 (no state income tax!)
• Alaska take-home pay (annual): $68,788
• Bi-weekly Alaska paycheck: ~$2,645

This example demonstrates how the Alaska paycheck calculator works. With no state income tax, your Alaska take-home pay is maximized compared to states with income taxes. The same $88,000 salary in Oregon would result in approximately $61,000-$63,000 take-home pay due to state taxes.

Multiple Salary Examples: Alaska Take-Home Pay

Understanding how different salary levels affect your Alaska take-home pay helps with financial planning:

Entry-Level ($45,000 salary, single filer): After federal taxes (~$3,400), FICA (~$3,442), and no state tax, annual take-home pay is approximately $38,158, or $1,468 per bi-weekly paycheck.

Mid-Career ($70,000 salary, married filing jointly): After federal taxes (~$5,500), FICA (~$5,355), and no state tax, annual take-home pay is approximately $59,145, or $2,275 per bi-weekly paycheck.

Senior Level ($110,000 salary, married filing jointly, 8% 401(k)): After 401(k) contribution ($8,800), federal taxes (~$9,800), FICA (~$7,743), and no state tax, annual take-home pay is approximately $83,657, or $3,218 per bi-weekly paycheck.

High Earner ($150,000 salary, single filer, 10% 401(k)): After 401(k) contribution ($15,000), federal taxes (~$20,500), FICA (~$9,975), and no state tax, annual take-home pay is approximately $104,525, or $4,020 per bi-weekly paycheck.

Comparing Alaska to Neighboring States

Understanding how Alaska compares to nearby states and high-tax states helps when evaluating job offers or considering relocation:

Alaska vs. Washington: Washington also has no state income tax, so someone earning $85,000 in Washington takes home approximately $65,000-$67,000, similar to Alaska. However, Washington has a higher sales tax, while Alaska has no sales tax.

Alaska vs. California: California has one of the highest state income tax rates (up to 13.3%). Someone earning $100,000 in Alaska takes home approximately $75,000, compared to about $68,000-$70,000 in California—a difference of $5,000-$7,000 per year.

Alaska vs. Oregon: Oregon has progressive tax rates up to 9.9%. Someone earning $85,000 in Alaska takes home approximately $65,000-$67,000, compared to about $58,000-$61,000 in Oregon—a difference of $4,000-$9,000 per year.

Alaska vs. Montana: Montana has progressive tax rates up to 6.75%. Someone earning $85,000 in Alaska takes home approximately $65,000-$67,000, compared to about $62,000-$64,000 in Montana—a difference of $1,000-$5,000 per year.

Alaska-Specific Benefits and Considerations

Beyond the lack of state income tax, Alaska offers several unique benefits and considerations that affect your financial situation:

Permanent Fund Dividend (PFD): Alaska residents receive annual PFD payments, typically ranging from $1,000 to $2,000 per person, depending on fund performance. This additional income can help offset Alaska's higher cost of living but doesn't affect your paycheck calculations.

Remote Work Allowance: Some employers in Alaska offer cost-of-living adjustments or remote work allowances to help offset higher living costs, especially for positions in remote areas.

Housing Allowances: Many Alaska employers, particularly in oil, fishing, and tourism industries, provide housing allowances or subsidized housing, which can significantly impact your effective take-home pay.

Higher Wages: Due to Alaska's remote location and challenging work conditions, many industries offer higher wages than the national average, which can help offset the higher cost of living.

2026 Planning Tips for Alaska Employees

• Update your W-4: If you want to adjust your Alaska take-home pay, update your W-4 if you picked up a second job, got married, or expect significant itemized deductions in 2026.
• Maximize pre-tax benefits: Leverage pre-tax benefits—every dollar you contribute to a 401(k) or HSA reduces your federal taxable income, increasing your take-home pay. In Alaska, you get the full benefit since there's no state tax to save on.
• Track Social Security wage base: Track your year-to-date taxable wages. Once you hit the Social Security wage base ($168,600 in 2025), your Alaska take-home pay will increase because OASDI withholding stops for the rest of the year.
• Consider total cost of living: While Alaska has no income tax, remember to consider property taxes, higher grocery and utility costs, and transportation expenses when evaluating your overall financial situation. Factor in the annual PFD payment when budgeting.
• Plan for seasonal work: Many Alaska industries are seasonal (fishing, tourism). If you work seasonally, adjust your tax withholdings to account for months without income, and budget accordingly.
• Research location-specific costs: Cost of living varies significantly between Anchorage, Fairbanks, and remote areas. Research housing, utilities, and transportation costs in your specific Alaska location when evaluating job offers.

Frequently Asked Questions About Alaska Paycheck Calculator