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Alaska repealed its income tax in 1980, when oil revenue began carrying the budget, and levies no statewide sales tax either.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 · $70,000 salary in Alaska
- Federal income tax: $6,570 for the year, from the published 2026 brackets.
- Social Security and Medicare: $5,355 — charged on gross wages everywhere in the country.
- Alaska state income tax: $0 — a verified zero, sourced below, not an estimate.
- Take-home: $58,075 a year, $4,839.58 a month.
Comparing from here
The same salary 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 paycheck calculator breaks the year into single paychecks, and the main salary 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 of the annual result into monthly, weekly and per-paycheck equivalents.
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 taxpayer's liability threshold for their filing status.
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.
Is take-home pay in Alaska the same as in other no-income-tax states?
For the same salary and filing status, yes — federal tax, Social Security and Medicare are identical nationwide, and Alaska adds nothing on top. What differs between the nine no-tax states is everything around the paycheck: sales and property taxes, living costs, and rules like the ones covered in the FAQs above.