2026 Alaska State Income Tax

Alaska does not collect a state income tax on wages. There is no state W-4 to file, no state withholding line on your paystub, and no Alaska state return for wage income at the end of the year. Federal income tax is your only paycheck-based tax obligation.

The 2026 Alaska rate

0% (no state income tax)

Why Alaska has no income tax

Alaska is one of two states (with Florida) that has never levied a personal income tax. The state funds itself primarily from oil and gas severance taxes on producers in the North Slope and Cook Inlet, plus revenue from the Alaska Permanent Fund. Most Alaska residents receive an annual Permanent Fund Dividend (PFD) distribution from that fund, which has historically ranged from roughly $1,000 to $3,000 per resident per year.

Local-government revenue in Alaska comes mostly from property taxes and, in some boroughs, local sales taxes. There is no statewide sales tax. The PFD itself is taxable on your federal return as ordinary income, even though Alaska does not tax it on the state side.

What this means for your withholding

When you select Alaska in the Breakeven calculator, the state row on your projection will show $0 owed and $0 withheld — you can't under-withhold for a tax that doesn't exist. Your federal projection covers your entire paycheck-based tax bill. The W-4 is the only payroll form you need to worry about.

How Alaska compares to states with income tax

Alaska funds its government through other sources: typically property taxes, sales taxes, severance taxes on natural resources, or specific industry levies. Total state and local tax burden in a no-income-tax state is not necessarily lower than in a state with an income tax; the mix is just different. For a take-home-pay comparison across states, model your federal projection in the calculator and compare it to federal brackets alone.

Sources

• Alaska Department of Revenue — official income-tax landing page (or equivalent).
• Tax Foundation — State Income Tax Rates — cross-reference for the no-income-tax classification.

Note on state payroll surcharges. Alaska does not collect statewide income tax, disability, or paid-leave premiums on wages. (Washington is the only no-income-tax state with statewide payroll programs the calculator currently models.) See the methodology for the full list of what is included and excluded.

Last cross-checked on 2026-04-28.

Canonical reference: https://www.breakeven.tax/brackets/2026/alaska