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Tax Year 2026Updated July 23, 2026

Alaska Paycheck Calculator 2026 - No State Income Tax

Alaska is one of nine states with no state income tax (0% state rate). Your paycheck is only reduced by federal income tax and FICA (7.65% for Social Security and Medicare). There is no state withholding line at all, which means Alaska workers keep more of every dollar earned compared to most other states. Use the calculator below to estimate your per-period take-home pay for 2026.

Why Alaska Paychecks Are Bigger

With no state income tax, Alaska residents avoid the 3%-13%+ state tax bite that workers in most other states face. The only deductions from your paycheck are at the federal level.

State Income Tax0%

On a $62,000 salary (Married Filing Jointly), a Alaska worker takes home approximately $797 more per year than an identical worker in California, purely from the state income tax difference.

Alaska makes up for the absence of income tax through other revenue sources. Retirees benefit from full exemption of pension income.

Alaska has no state income tax or state sales tax. Local boroughs and cities may impose their own sales taxes (up to ~7.5%) and property taxes. There are no local income taxes.

How Your Alaska Paycheck Is Calculated

  1. Gross pay: Your annual salary divided by the number of pay periods.
  2. Federal income tax: 2026 progressive brackets (10%-37%) after the federal standard deduction of $16,100 (single) or $32,200 (MFJ).
  3. Social Security: 6.2% on wages up to $184,500.
  4. Medicare: 1.45% on all wages, plus 0.9% above $200,000 (single).
  5. State income tax: $0 - Alaska has no state income tax.

Retirement Income in Alaska

Alaska fully exempts pension and retirement income from state income tax. Social Security benefits are also not taxed. This makes Alaska favorable for retirees from an income tax perspective.

Worked Examples

Example 1: $62,000/year - Married Filing Jointly, Monthly

Profile: $62,000 annual salary, Married Filing Jointly filer, paid monthly (12 paychecks/year)

Gross per period: $5,166.67
Federal income tax: -$256.67
Social Security: -$320.33
Medicare: -$74.92
Alaska state income tax: -$0.00
Net take-home pay: $4,514.75 per paycheck ($54,177/year)
Effective total tax rate: 12.62%

Example 2: $48,000/year - Head of Household, Biweekly

Profile: $48,000 annual salary, Head of Household filer, paid biweekly (26 paychecks/year)

Gross per period: $1,846.15
Federal income tax: -$96.46
Social Security: -$114.46
Medicare: -$26.77
Alaska state income tax: -$0.00
Net take-home pay: $1,608.46 per paycheck ($41,820/year)
Effective total tax rate: 12.88%

Example 3: $175,000/year - Single, Semi-monthly

Profile: $175,000 annual salary, Single filer, paid semimonthly (24 paychecks/year)

Gross per period: $7,291.67
Federal income tax: -$1,280.58
Social Security: -$452.08
Medicare: -$105.73
Alaska state income tax: -$0.00
Net take-home pay: $5,453.28 per paycheck ($130,879/year)
Effective total tax rate: 25.21%

Alaska Tax Notes

  • No state income tax - your paycheck deductions are federal only.

OBBBA Deductions

The OBBBA deductions for tips and overtime apply to your federal return regardless of state. Since Alaska has no state income tax, there is no state-level conformity issue - you already pay $0 state tax on all income.

Frequently Asked Questions

What taxes are deducted from my Alaska paycheck?
Only federal income tax (10%-37%) and FICA (6.2% Social Security + 1.45% Medicare) are withheld. Alaska has no state income tax, so there is no state withholding line on your pay stub.
How accurate is this paycheck calculator?
This calculator estimates take-home pay using 2026 federal and Alaska state tax rates. It models federal income tax, FICA, and state income tax. It does not include pre-tax deductions (401(k), HSA, health insurance premiums), post-tax deductions, or state-specific payroll taxes (disability insurance, paid leave). Your actual paycheck may differ.
Why is there no state income tax on my Alaska paycheck?
Alaska is one of nine states that does not levy a state income tax. This means your paycheck is only reduced by federal income tax and FICA. Alaska funds state services through other revenue sources such as sales tax and property tax.
Do I need to file a state tax return in Alaska?
No. Since Alaska has no individual income tax, there is no state income tax return to file. You only need to file your federal return. However, if you earned income in another state that does have income tax, you may need to file in that state.
Is my pension or retirement income taxed in Alaska?
No. Alaska fully exempts pension and retirement income from state income tax. Social Security benefits are also not taxed. This makes Alaska a favorable state for retirees from an income tax perspective.
Does the OBBBA overtime/tips deduction matter in Alaska?
The OBBBA deductions for tips and overtime apply to your federal tax return regardless of state. Since Alaska has no state income tax, there is no state-level conformity issue. You already pay $0 state tax on all income including tips and overtime.
What is the Alaska Permanent Fund Dividend (PFD)?
Alaska's Permanent Fund Dividend (PFD) is an annual cash payment to qualifying Alaska residents, funded by earnings from the Alaska Permanent Fund, a sovereign wealth fund built on oil and gas royalties collected by the state. The PFD amount varies each year based on fund performance and legislative appropriation. The PFD is not subject to Alaska income tax (there is none), but it is federally taxable income; you will receive a 1099-MISC for any PFD received in the tax year. The PFD is one reason Alaska can sustain its no-income-tax, no-sales-tax model despite limited population and high service costs.