The Alaska tax picture
Alaska repealed its income tax in 1980, when oil revenue began carrying the budget, and levies no statewide sales tax either. A paycheck earned in Alaska sees only the federal deductions this calculator itemises.
The state's oil wealth goes further than replacing taxes: the Permanent Fund pays most residents an annual dividend from invested oil revenue. The amount varies year to year and is federally taxable income — a uniquely Alaskan line on the tax return that no calculator's defaults can predict.
take-home = gross − federal income tax − Social Security − Medicare − $0 Alaska taxWorked example · $2,500 biweekly paycheck in Alaska
- Federal income tax: $5,620 for the year, from the published 2026 brackets.
- Social Security and Medicare: $4,973 — charged on gross wages everywhere in the country.
- Alaska state income tax: $0 — a verified zero, sourced below, not an estimate.
- Net per paycheck: $2,092.60, from $65,000 of annualised gross.
Comparing from here
The same paycheck in Wyoming, Washington or New Hampshire nets the same federal result — the differences live in each state's other taxes, which their pages explain. For Alaska itself, the Alaska salary calculator zooms out to the full year, and the main paycheck calculator lets you model any state. The mechanics behind every line are in the gross pay vs. net pay guide.
What’s included, and what isn’t
Every figure this calculator produces is an estimate. Here is exactly what it accounts for, and what it does not.
What’s included
- Federal income tax, using the published brackets and standard deduction for your filing status.
- Employee Social Security at 6.2%, capped at the annual wage base.
- Employee Medicare at 1.45%, plus Additional Medicare Tax where it applies.
- Any pre-tax contributions you enter, applied to federal taxable income only.
- State income tax for the nine states that levy none on wages — a verified zero, not an omission.
- Conversion between your pay period and the annual figures payroll works from.
What’s not included
- State income tax outside the states listed as levying none on wages.
- County, city and other local income taxes.
- Tax credits, itemised deductions and above-the-line adjustments.
- Employer benefits, insurance premiums and post-tax deductions.
- Form W-4 adjustments such as dependants, other income or extra withholding.
- Bonuses, commission and overtime, which payroll often withholds at a separate supplemental rate.
- Multiple jobs, a working spouse's income, and mid-year pay changes.
What this calculator assumes
- Uses the federal standard deduction for the selected filing status and tax year.
- Assumes W-2 employment at one job for the full calendar year.
- Pre-tax contributions reduce federal taxable income but not Social Security or Medicare wages.
- Social Security stops at the $184,500 wage base for 2026.
- Additional Medicare Tax follows the employer withholding rule: a flat $200,000 of wages, regardless of filing status.
- Assumes every paycheck in the year is the same size, which is what makes an annualised estimate meaningful.
- Models what an employer withholds, not your final tax return. The two can differ.
Sources
Every rate and threshold above is transcribed from a primary source and re-checked on the date shown.
Frequently asked questions
Does Alaska tax wages?
No. Alaska has had no personal income tax since 1980. Everything withheld from an Alaskan paycheck is federal — income tax, Social Security and Medicare.
What is the Permanent Fund Dividend?
An annual payment most Alaska residents receive from the state's invested oil revenues. The amount is set each year and is taxable on your federal return as ordinary income — so while Alaska takes nothing from your pay, the PFD adds a little to what the IRS sees.
Is there sales tax in Alaska?
No statewide sales tax, though some municipalities levy their own local one. Between no income tax and no state sales tax, Alaska taxes its residents less directly than almost anywhere — oil revenue fills the gap.
Do higher Alaskan salaries just reflect the cost of living?
Partly. Employers often pay a premium for remote postings and higher living costs. The untaxed state line means more of that premium survives into take-home pay than it would in a taxing state — this calculator shows exactly how much.
Why is so much still withheld from my Alaska paycheck?
Because withholding is mostly federal everywhere. Federal income tax follows your W-4, and Social Security and Medicare are flat percentages of gross pay — none of which Alaska controls. The state's contribution is what is missing: the state income tax line other states add is a verified zero here.