Alaska Paycheck Calculator 2026 — No State Tax + PFD Payout
Drop your Alaska gross salary — get annual + monthly + bi-weekly take-home, full breakdown of federal + FICA + Alaska state tax, effective rate, and how you compare to the Alaska median household. Alaska has no state income tax — federal + FICA only.
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- AI insight included
Alaska Paycheck Calculator
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How much do I take home in Alaska? — short answer first
Alaska is one of nine US states with no personal income tax — and uniquely, Alaska PAYS its residents an annual cash payment via the Permanent Fund Dividend (PFD). The PFD distributes a share of oil and mineral royalty revenue to all Alaska residents each October — typically $1,000-$3,000 per person depending on Permanent Fund performance and legislative appropriation. For a family of 4, the PFD can add $4,000-$12,000 in annual cash that no other US state provides. Alaska also has no state sales tax (one of just 5 US states), though some boroughs and cities levy local sales tax. Cost of living is 25-40% above the US average due to logistics — partially offsetting the no-tax advantage.
The Alaska take-home pay formula
net_pay = gross − federal_tax − fica − state_tax − local_tax − pre_tax
federal_tax = Σ (federal_bracket × rate) on (gross − std_dev − 401k − hsa)
fica = MIN(wages, $181K) × 6.2% + wages × 1.45% + add'l Medicare
state_tax = 0 // Alaska has no state income tax
local_tax = 0 // no local payroll tax in AlaskaThe 2026 take-home calculation for Alaska stacks four mandatory deductions: federal income tax (7-bracket progressive), FICA (Social Security capped at $181K + uncapped Medicare), no state income tax — Alaska is one of nine states without one. Pre-tax 401(k) and HSA reduce federal taxable income; HSA additionally reduces FICA wages.
Source:Alaska Department of Revenue — no personal income tax· Alaska Department of Revenue (or equivalent)
How Alaska taxes payroll in 2026
Alaska has no personal income tax — abolished in 1980 after the Trans-Alaska Pipeline System (TAPS) began generating substantial oil revenue. Pre-1980, Alaska did tax personal income; the legislature repealed the tax to refund oil royalty surpluses directly to residents instead. Your Alaska paycheck is reduced only by federal income tax (IRS 2026 brackets), Social Security (6.2% up to ~$181,000), and Medicare (1.45% on all wages + 0.9% additional above $200K single / $250K joint). Uniquely among US states, Alaska also PAYS its residents an annual cash payment via the Permanent Fund Dividend (PFD) program under AS §43.23. The PFD distributes a share of Alaska Permanent Fund earnings (built from oil and mineral royalties) to all Alaska residents each October. Historical PFD amounts: $1,114 (2020), $1,114 (2021), $3,284 (2022, plus special $662 'energy relief' bonus), $1,312 (2023), $1,702 (2024). The 2026 PFD will be set by legislative appropriation, typically between $1,000-$3,000 per resident. For a family of 4 Alaska residents, the PFD adds $4,000-$12,000 in annual cash that no other US state provides — effectively a negative income tax. PFD payments ARE subject to federal income tax (reported on Form 1099-MISC) but are state-tax-free since Alaska has no state income tax. Alaska has no state sales tax — one of just 5 US states with no state sales tax (alongside Delaware, Montana, New Hampshire, Oregon). However, individual boroughs and cities may levy local sales tax: Juneau 5%, Kodiak 6%, Anchorage 0% (no local sales tax), Fairbanks 0%. Property tax effective rate is moderate at ~1.04% statewide. Cost of living in Alaska is 25-40% above the US average due to logistics (everything must be shipped or flown in for most of the state) — partially offsetting the no-state-tax + PFD advantages. Anchorage is the most affordable Alaska metro; remote villages can be 50-100% above mainland US prices for staples.
Alaska city callouts
- Anchorage — No local sales tax; property tax ~1.32% effective; oil + military + healthcare anchors; cost of living ~30% above US average; PFD + no income tax = strong net position.
- Fairbanks + Juneau — Property tax ~1.32-1.50% effective; Juneau has 5% local sales tax; Fairbanks has 0% local sales tax; state capital (Juneau) + university (Fairbanks) anchors.
How to use this calculator
- Enter your annual gross salary. Pre-tax, what your employer pays before any deductions.
- Pick filing status. Single, married filing jointly, married filing separately, or head of household. Drives both federal and Alaska brackets.
- Add 401(k) and HSA contributions (optional). Both lower your federal taxable income; HSA also lowers FICA wages.
- Read the verdict. Annual + monthly + bi-weekly take-home, federal + state + local breakdown, and effective tax rate.
Common mistakes
- Confusing gross with adjusted gross. The calculator wants your gross salary — what your employer pays before any pre-tax deductions or contributions. If you enter your W-2 Box 1 (already net of 401k), the math will under-count your tax.
- Forgetting that 401(k) is still subject to FICA. Traditional 401(k) reduces federal income tax but NOT Social Security + Medicare. Only HSA (through payroll) reduces both.
- Ignoring multi-state implications. If you work in Alaska but live elsewhere (or vice versa), you may owe taxes in both states with a credit between them. This calculator assumes you both live and work in Alaska.
US payroll terminology — quick reference
Eight terms that show up on every payslip. Skim the snippet; expand the card for the longer explanation. Same terms apply across all 51 state-paycheck calculators — only the Alaska state line in each formula changes.
Quick reference
Payroll terminology — applies to Alaska
Gross Salary
The headline number from your offer letter, before any deductions. The starting point for every paycheck calculation.
- Lenders, landlords, and benefit calculations use gross. Always confirm whether a quoted figure is gross or net — the gap is typically 25-40% in the US once federal + FICA + state are stacked.
Net Take-Home Pay
What lands in your bank account after federal + FICA + state + local + pre-tax deductions. The number to budget against.
- For Alaska: gross − federal − FICA (no Alaska state income tax) − 401(k) − HSA.
FICA
Federal Insurance Contributions Act — payroll tax funding Social Security (6.2% to $181K) + Medicare (1.45%, no cap). 7.65% combined.
- Additional Medicare 0.9% applies above $200K single / $250K MFJ. Thresholds frozen since 2013, so an increasing share of earners hit it each year. HSA contributions (but NOT 401k) reduce FICA wages.
Source: SSA — Wage base & tax rates
Marginal Tax Rate
The rate applied to your NEXT dollar of income. Drives the cost of a raise, bonus, or extra 401(k) contribution.
- In Alaska, your combined marginal rate stacks federal (12-37%) + FICA (1.45-2.35%). A six-figure earner often faces a 35-45% marginal rate.
Effective Tax Rate
Total tax divided by gross income. The actual percentage of your salary that disappears to tax — always lower than marginal.
- Two earners at the same gross can have different effective rates depending on pre-tax contributions. Use effective rate for affordability comparisons; use marginal for raise / bonus decisions.
Standard Deduction
Fixed amount subtracted from gross before federal brackets apply. 2026: $15,750 single · $31,500 MFJ · $23,625 HoH.
- Alaska's state standard deduction (single) is $0 — applied independently before state brackets. Federal and state standard deductions stack; you do not have to itemize on one to claim the other.
Source: IRS Rev. Proc. 2024-40
Pre-Tax Deductions
Amounts subtracted from gross BEFORE income tax is computed — 401(k), traditional IRA via payroll, HSA, FSA, employer health premiums.
- Reduces federal taxable income dollar-for-dollar. HSA also reduces FICA wages (the 'triple advantage'). Traditional 401(k) reduces federal tax but NOT FICA — Roth 401(k) reduces neither but grows tax-free.
Alaska (No State Tax)
Alaska is one of nine US states without a personal income tax. Federal + FICA + voluntary deductions only.
- Other no-income-tax states: FL, NV, NH, SD, TN, TX, WA, WY. Most fund state government from sales tax, property tax, severance tax, or tourism (Florida + Nevada).
Source: Alaska Department of Revenue — no personal income tax
Methodology & Sources
Federal income tax + FICA: IRS Pub 15-T 2026 projected brackets + Social Security Administration 2026 wage base ($181,000) + Medicare 1.45% (no cap) + Additional Medicare 0.9% above $200K/$250K thresholds. Alaska state income tax: Alaska Department of Revenue — no personal income tax — last verified 2026-05-13. Brackets refresh annually — most state DORs publish updates in Q4 preceding the tax year. Federal 2026 figures are projected from 2025 (Rev. Proc. 2024-40) with ~2.5% inflation adjustment; refresh against IRS October release.
Frequently asked questions
Does Alaska really pay residents money?
Yes — the Permanent Fund Dividend (PFD) distributes a share of Alaska Permanent Fund earnings to all residents each October. 2024 PFD was $1,702 per person. For a family of 4, that's $6,808 in annual cash. PFD amounts vary by year and legislative appropriation; historical range $1,000-$3,200+. The PFD is federally taxable but not state-taxable (no state income tax exists).
Why does Alaska have no income tax?
Alaska abolished its personal income tax in 1980, after the Trans-Alaska Pipeline System began generating substantial oil revenue. Pre-1980, Alaska did tax income. The legislature repealed the tax + created the Permanent Fund Dividend to distribute oil royalty surpluses directly to residents instead. This structure has held since 1980.
Does Alaska have sales tax?
No state sales tax — Alaska is one of 5 US states with no state sales tax (alongside DE, MT, NH, OR). However, individual boroughs and cities may levy local sales tax: Juneau 5%, Kodiak 6%, Sitka 5%, Anchorage 0%, Fairbanks 0%. The local-sales-tax patchwork is unique to Alaska. Anchorage residents pay only federal + FICA on wages and no sales tax — among the cleanest paycheck states.
Is Alaska really cheaper despite the high cost of living?
Depends on your spending pattern. Alaska wages are typically 10-20% higher than US average to offset cost of living, plus the PFD adds $1,500-$3,000 per resident. For a family of 4 in Anchorage, that's $6,000-$12,000 in PFD + state-tax savings (~$5K-$15K vs CA/NY). But Alaska groceries are 30-50% more expensive than mainland US. Net is favourable for high earners + retirees, less so for low-income families.
Want to compare Alaska take-home pay against another state? Use the national take-home pay calculator with a flat-rate state input. To see what you'd save by changing your 401(k) contribution, drop the gross salary into the salary-to-hourly calculator. For cost-of-living adjustments when comparing jobs across states, the cost of living calculator adjusts for housing + groceries + tax differences between metros.
Frequently Asked Questions
The most common questions we get about this calculator — each answer is kept under 60 words so you can scan.
What's the effective tax rate in Alaska on a $100K single salary in 2026?
Alaska has no state income tax (1 of 9 such US states). A $100,000 single filer pays only $13,841 federal income tax + $7,650 FICA = $21,491 total → 21.5% effective rate. This is among the lowest single-filer effective rates in the US. The calculator above shows the exact number including 401(k) + HSA deductions.If Alaska has no state income tax, where does state revenue come from?
Alaska funds public services primarily through oil + mineral royalty severance (which also funds the Permanent Fund Dividend paid to every resident). The combined state-and-local tax burden lands lower than typical income-tax states for renters and modest spenders. Alaska's PFD is unique — every resident receives an annual cash payment (~$1,700 in 2024).Does Alaska really pay residents money?
Yes — the Permanent Fund Dividend (PFD) distributes a share of Alaska Permanent Fund earnings to all residents each October. 2024 PFD was $1,702 per person. For a family of 4, that's $6,808 in annual cash. PFD amounts vary by year and legislative appropriation; historical range $1,000-$3,200+. The PFD is federally taxable but not state-taxable (no state income tax exists).Why does Alaska have no income tax?
Alaska abolished its personal income tax in 1980, after the Trans-Alaska Pipeline System began generating substantial oil revenue. Pre-1980, Alaska did tax income. The legislature repealed the tax + created the Permanent Fund Dividend to distribute oil royalty surpluses directly to residents instead. This structure has held since 1980.Does Alaska have sales tax?
No state sales tax — Alaska is one of 5 US states with no state sales tax (alongside DE, MT, NH, OR). However, individual boroughs and cities may levy local sales tax: Juneau 5%, Kodiak 6%, Sitka 5%, Anchorage 0%, Fairbanks 0%. The local-sales-tax patchwork is unique to Alaska. Anchorage residents pay only federal + FICA on wages and no sales tax — among the cleanest paycheck states.Is Alaska really cheaper despite the high cost of living?
Depends on your spending pattern. Alaska wages are typically 10-20% higher than US average to offset cost of living, plus the PFD adds $1,500-$3,000 per resident. For a family of 4 in Anchorage, that's $6,000-$12,000 in PFD + state-tax savings (~$5K-$15K vs CA/NY). But Alaska groceries are 30-50% more expensive than mainland US. Net is favourable for high earners + retirees, less so for low-income families.