Alaska Take-Home Pay Calculator (2026)

Alaska has no state income tax. Workers keep their full gross wages without any state withholding, which puts Alaska in a small group of states where the only payroll deductions beyond federal taxes are Social Security and Medicare.

What makes Alaska additionally unusual is the Permanent Fund Dividend. Most years, Alaska residents receive a direct payment from the state funded by oil revenue. The amount varies significantly year to year depending on oil prices and legislative decisions. In 2022 it was over $3,200 per person; in other years it has been under $1,000. It is not a salary supplement but it is real money that comes back to residents annually.

Alaska has no statewide sales tax, though local municipalities can and do impose their own. Some boroughs charge up to 7.5% in sales tax, so the total tax picture depends on where in Alaska you live. Anchorage has no sales tax at all; smaller communities outside city limits often have none either.

For workers comparing Alaska to states with income tax, the difference shows up clearly in take-home pay. A $70,000 earner in a state with a 5% income tax pays roughly $3,500 per year in state tax. In Alaska, that money stays in the paycheck every year.