Alaska Paycheck Calculator
Alaska levies no income tax on wages — and unlike every other no-tax state except Washington, its pay stub still has one small state line. Alaska is among the few states where employees share the cost of unemployment insurance: 0.5% of the first $54,200 of 2026 wages, at most $271 for the year. This calculator itemizes it next to the federal lines.
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What comes out of an Alaska paycheck
The federal three — income tax withholding per your W-4, Social Security at 6.2% up to the wage base, Medicare at 1.45% plus the 0.9% additional tax above $200,000 — and one state line most calculators forget: employee-paid unemployment insurance at 0.5% of the first $54,200 of wages in 2026. It tops out at $271.00 for the year, so on a biweekly check it is small money, but it is real and it is on your stub. Alaska has no individual income tax and requires no state withholding beyond that.
Worked examples
| Annual salary | Alaska income tax | Employee UI | Federal income tax | Social Security & Medicare | Take-home per biweekly check | Annual take-home |
|---|---|---|---|---|---|---|
| $50,000 | $0 | $250 | $3,820 | $3,825 | $1,619.42 | $42,105 |
| $75,000 | $0 | $271 | $7,670 | $5,738 | $2,358.52 | $61,322 |
| $100,000 | $0 | $271 | $13,170 | $7,650 | $3,034.96 | $78,909 |
Single filer, paid biweekly, no pre-tax deductions or dependents entered. Generated by the same calculation engine as the calculator above.
The only state that pays you
Alaska is the lone state with neither an individual income tax nor a statewide sales tax — some boroughs and cities levy their own local sales taxes, but the state itself takes nothing at the register. It goes one further: the Permanent Fund Dividend pays every eligible resident an annual share of the state's oil-wealth investment earnings. The PFD has nothing to do with payroll, but note that it is taxable income on your federal return — the IRS does not share Alaska's generosity.
How Alaska affords it
Oil. Petroleum revenue and Permanent Fund earnings carry a state budget that income and sales taxes carry elsewhere, with property taxes levied locally by boroughs. That model tracks oil prices, and proposals for an income tax resurface in lean years — but for 2026 no such tax exists, and none is enacted.
Official sources
Every figure in this calculator traces to one of these publications; nothing is estimated from third-party summaries.
- Alaska Department of Revenue — Personal Income — Alaska has no individual income tax and requires no employee state withholding.
- Alaska Department of Labor — 2026 UI tax rates — the 0.50% employee rate and $54,200 taxable wage base behind the UI line.
- IRS Rev. Proc. 2025-32 — the 2026 federal brackets and standard deduction behind the federal line.
- SSA contribution and benefit base — the 2026 Social Security wage base used for the 6.2% line.
Last reviewed: August 1, 2026.
Frequently asked questions
Why is there a small state deduction on my Alaska paycheck?
That is employee unemployment insurance. Alaska is one of a handful of states where workers pay a share of UI alongside employers — 0.5% of your first $54,200 of wages in 2026, capped at $271.00 for the year. It is an insurance contribution, not an income tax, and your employer withholds it automatically.
Is the Permanent Fund Dividend taxed?
Alaska takes nothing from it, but the IRS treats the PFD as ordinary taxable income — it belongs on your federal return, and a child's PFD can trigger a filing requirement of its own. The dividend amount changes each year with fund earnings and legislative appropriation.
Does Anchorage or any Alaska city tax wages?
No Alaska municipality taxes wages. Local governments raise revenue from property taxes and, in many boroughs and cities, a local sales tax — Anchorage itself has no general sales tax either.
Has Alaska ever had an income tax?
Yes — Alaska taxed personal income until repealing the tax once trans-Alaska pipeline oil revenue began flowing in the early 1980s, and it remains the only state ever to repeal one outright. Reinstatement bills appear whenever oil prices slump, but none has passed.
Related calculators
This calculator is provided for general educational and estimation purposes only. It does not constitute tax, legal, accounting, or financial advice. This is an estimated take-home pay calculation: your employer's actual withholding may differ based on your federal and state withholding forms, payroll timing, local taxes, benefits and employer payroll settings. Review official IRS and state guidance or consult a qualified tax professional before making decisions.