What taxes do Alaska residents pay?

Alaska residents pay federal income tax, Social Security tax (6.2%), and Medicare tax (1.45%). While there is no state income tax, Alaska may have higher sales tax or property tax rates to compensate for state revenue.

Is Alaska a tax-friendly state?

Alaska is generally considered tax-friendly because it has no state income tax. However, total tax burden also depends on property taxes, sales taxes, and other state and local taxes that may be higher than average.

How do I calculate my total Alaska tax bill?

Your total tax includes federal income tax (10%–37%), Social Security (6.2% on the first $176,100), Medicare (1.45%), and no state income tax since Alaska doesn't levy one. Use our free calculator above for an instant breakdown.

Alaska Income Tax Calculator 2026

Estimate your Alaska (AK) income tax for 2026. Alaska has no state income tax on wages. Enter your income below and click “Calculate Taxes” for an instant breakdown.

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Alaska Income Tax Overview

Alaska is one of nine states with no state income tax on wages. Residents only pay federal income tax and FICA (Social Security and Medicare). This makes Alaska one of the most tax-friendly states for workers.

Key Facts About Alaska Taxes

Alaska is the only state that both has no income tax and pays residents an annual dividend from oil revenues — the Permanent Fund Dividend (PFD), which averaged $1,312 in 2024.

With no state sales tax either, Alaska has one of the lowest overall tax burdens in the nation. However, local municipalities can levy their own sales taxes up to 7.5%.

Alaska compensates for low tax revenue with oil extraction revenue and high per-capita federal funding.

Frequently Asked Questions

Does Alaska have a state income tax?: No. Alaska is one of nine states with no state income tax on wages. Residents only pay federal income tax and FICA taxes (Social Security at 6.2% and Medicare at 1.45%).
What taxes do Alaska residents pay?: Alaska residents pay federal income tax, Social Security tax (6.2%), and Medicare tax (1.45%). While there is no state income tax, Alaska may have higher sales tax or property tax rates to compensate for state revenue.
Is Alaska a tax-friendly state?: Alaska is generally considered tax-friendly because it has no state income tax. However, total tax burden also depends on property taxes, sales taxes, and other state and local taxes that may be higher than average.
How do I calculate my total Alaska tax bill?: Your total tax includes federal income tax (10%–37%), Social Security (6.2% on the first $176,100), Medicare (1.45%), and no state income tax since Alaska doesn't levy one. Use our free calculator above for an instant breakdown.

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Alaska Total Tax Burden

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