How Alaska Taxes Your Paycheck
Alaska has no state income tax on wages. Your paycheck deductions in Alaska are limited to federal income tax, Social Security (6.2% up to the wage base), Medicare (1.45%), and any pre-tax benefits you elect through your employer (401(k), health insurance, FSA/HSA).
Residents receive an annual Permanent Fund Dividend (about $1,300 in 2024) — a payout funded by oil revenue.
Oil and gas, fishing, and tourism dominate Alaska's economy.
Top Cities in Alaska
The largest population centers in Alaska:
- Anchorage — 287,000 residents
- Fairbanks — 31,700 residents
- Juneau — 31,900 residents
Frequently Asked Questions
What's the Alaska state income tax rate?
Alaska has no state income tax on wages. Your only mandatory paycheck deductions are federal income tax (10–37% depending on income), Social Security (6.2% up to $184,500 in 2026), and Medicare (1.45%, plus 0.9% on wages over $200K).
How much is taken out of my paycheck in Alaska?
For a single filer earning $75,000 in Alaska (2026), expect roughly $7,670 in federal income tax, $5,738 in FICA — leaving about $61,593 take-home (17.9% effective tax rate). SDI/PFML and local taxes (if any) come out of that as well.
Is the Alaska median household income enough to live comfortably?
The 2023 ACS reported a Alaska median household income of about $95,700. Whether that's "comfortable" depends heavily on city — Anchorage cost of living can differ substantially from rural areas. Use the calculator above to model your specific salary and deductions.
How does this Alaska paycheck calculator work?
We calculate your annualized gross pay based on the pay frequency you select, then apply the 2025 or 2026 IRS percentage method for federal income tax, the Alaska state tax schedule (if any), Social Security, and Medicare. Pre-tax deductions like 401(k) and Section 125 health premiums reduce your taxable base before withholding is computed. You can switch between salary and hourly modes; hourly mode applies time-and-a-half to hours over 40/week prorated by pay period.