Alaska Paycheck Calculator: Find Your Exact Take Home Pay
This alaska paycheck calculator shows what actually lands in your bank account when you work in the Last Frontier. Alaska charges no state income tax on earned income at all, and it charges no state sales tax either, so your paycheck only loses federal income tax, Social Security, and Medicare. From the oil fields of the North Slope to the fishing docks of Kodiak and the offices of Anchorage, Alaska runs on an economy where keeping your whole paycheck is part of the pitch, and the state never touches any of it.
Ever wonder why an Alaska paycheck can look bigger than the same salary paid in the Lower 48? The answer is simple: the state tax line on an Alaska pay stub reads zero, every single time.
Quick Answer
Here is the short version. Alaska has no personal income tax, no state sales tax, and no local income tax anywhere in the state. On a $72,000 salary, a single filer in Anchorage takes home about $59,482 a year, roughly 83 percent of gross pay. Only federal income tax and FICA come out. A good alaska take home pay calculator should always show the Alaska state tax line as $0. If a tool shows Alaska state tax above zero, it is wrong.
Alaska Paycheck Calculator
Enter your pay and see exactly what lands in your bank account for 2026.
| Per paycheck | Per year | |
|---|---|---|
| Gross pay | ||
| Federal income tax | ||
| Alaska state income tax | ||
| Social Security (6.2%) | ||
| Medicare (1.45%) | ||
| Take home pay |
Alaska has no state income tax, so the state tax line is always $0. Estimates use 2026 IRS brackets and the 2026 Social Security wage base of $184,500. Your real withholding follows IRS Publication 15-T tables and your W-4, so your actual check can differ by a few dollars.
The alaska paycheck calculator above takes your gross pay, pay frequency, and filing status, then subtracts federal income tax, Social Security, and Medicare to give your net pay per check and per year. Add a 401k contribution or health premium to see how voluntary deductions change the result. It works as a paycheck calculator alaska workers can rely on because the state tax rate is locked at zero, just like real Alaska payroll. For the sitewide federal only version, see our main paycheck calculator.
How to Use This Calculator
- Enter your gross salary or hourly wage.
- Pick how often you get paid, such as every 2 weeks.
- Choose your filing status: single, married filing jointly, or head of household.
- Add any 401k percentage or health premium you pay each period.
- Read your net pay per paycheck and per year, with each deduction listed.
Alaska Tax Rules That Shape Your Paycheck
No state income tax on earned income, and no withholding
Alaska does not tax wages, salaries, bonuses, commissions, or tips at the state level. Alaska is one of only a handful of states with no personal income tax at all. That means your employer withholds $0 for Alaska tax on every check, and there is no state withholding form to fill out when you start a job. The federal W-4 alone controls your withholding.
No state sales tax either, but watch your borough
Alaska is also one of only five states with no statewide sales tax. The catch is local: boroughs and cities can levy their own sales tax, and more than 100 Alaska localities do. Anchorage, the largest city, charges 0 percent, and Fairbanks charges 0 percent too. Juneau, the capital, charges 5 percent, Kodiak charges 7 percent, and Wasilla charges 2.5 percent. Your shopping tax depends entirely on where you live, so an Anchorage paycheck stretches further at the register than a Juneau one.
Where Alaska gets its money instead
Alaska gives up income tax and sales tax revenue, so it leans on oil. Oil production taxes and royalties from the Alaska Pipeline have historically funded most of state government. The state also collects a corporate income tax of up to 9.4 percent and excise taxes on fuel, tobacco, alcohol, and marijuana. Property taxes are levied locally and vary by municipality. The trade off is real: your paycheck stays whole, but state revenue rises and falls with oil prices. So is the move worth it? Run your salary through the numbers before you decide.
The Permanent Fund Dividend pays residents every year
Alaska shares its oil wealth directly with residents through the Permanent Fund Dividend. Every eligible resident gets an annual payment, and the 2025 dividend was $1,000. To qualify you must have been a full year resident for the prior calendar year, intend to remain in Alaska, and meet the physical presence rules. The dividend is taxable for federal income tax purposes, so report it on your federal return, but Alaska takes no state tax from it. It never shows up on your paycheck, yet for many Alaskans it is the most famous tax benefit in the country.
Minimum wage is $13.00, rising to $14.00 in July 2026
Alaska sets one of the highest minimum wages in the country, and it keeps climbing. The Alaska Department of Labor and Workforce Development puts the current rate at $13.00 an hour as of July 1, 2025. Voters approved Ballot Measure 1 in 2024, which raises the rate to $14.00 on July 1, 2026, and $15.00 on July 1, 2027. From January 1, 2028, the rate adjusts each year with the Consumer Price Index for the Anchorage area. Alaska does not allow local minimum wage ordinances, so one rate covers Anchorage, Fairbanks, Juneau, and every borough alike.
No tip credit, and daily overtime
Alaska does not allow employers to count tips toward the minimum wage. Servers, bartenders, baristas, and hotel staff must receive the full state minimum wage in cash, and tips stay entirely theirs on top. Alaska also requires overtime at time and a half for hours over 8 in a workday or 40 in a workweek, which is stricter than the federal rule that only counts the workweek. That daily overtime rule matters a lot in fishing, tourism, and oil field schedules, where long days are normal.
Does Alaska tax overtime pay or bonuses?
Alaska takes $0 from overtime and $0 from bonuses, just like regular pay. Federally, many employers withhold a flat 22 percent on bonuses, and Social Security and Medicare still apply to overtime. Any extra withheld comes back on your federal return.
Worked Example: Test the Alaska Paycheck Calculator on a $72,000 Salary
Numbers make this real. Maya earns $72,000 a year in Anchorage, files as single, and gets paid every 2 weeks, which means 26 paychecks a year. Treat this alaska salary calculator example like the widget in action: salary in, take home pay out. Her federal taxable income is $55,900, which is $72,000 minus the $16,100 standard deduction. Her federal tax is $7,010 for the year: 10 percent of $12,400 equals $1,240, plus 12 percent of $38,000 equals $4,560, plus 22 percent of $5,500 equals $1,210.
| Deduction | Per Paycheck | Per Year |
|---|---|---|
| Gross pay | $2,769.23 | $72,000.00 |
| Federal income tax | $269.62 | $7,010.00 |
| Alaska state income tax | $0.00 | $0.00 |
| Social Security (6.2 percent) | $171.69 | $4,464.00 |
| Medicare (1.45 percent) | $40.15 | $1,044.00 |
| Net pay | $2,287.77 | $59,482.00 |
Maya keeps $2,287.77 from every $2,769.23 paycheck. Her take home pay is about 83 percent of her gross pay, and not one cent went to Alaska.
Alaska Paycheck Tips
Check your W-4 once a year. Your federal W-4 controls how much federal tax comes out. An old form can withhold too much or too little, and Alaska has no state form, so the federal form does all the work.
Use pre tax benefits. A 401k contribution and many health premiums come out before federal tax, which lowers your taxable income. Test a higher 401k percentage in the alaska paycheck calculator above and watch the net pay change before you commit.
Moving from a taxed state? Run your current salary through an alaska take home pay calculator first. The saving is real and shows up in every check. On a $72,000 salary, a worker in a state with a 5 percent income tax loses roughly $3,600 a year that an Alaska worker keeps. These are estimates, since other states use their own brackets, but price in the higher cost of living before deciding the move pays off.
Budget the cost of living side of the deal. Alaska taxes almost nothing, but groceries, heating fuel, and housing cost more than in the Lower 48, especially off the road system. A bigger paycheck helps, yet the real cost of living decides whether the move pays.
Do not forget the PFD on your federal return. The Permanent Fund Dividend is taxable federally. The 2025 dividend was $1,000, and the PFD Division reports it to the IRS. Set a little aside or adjust your W-4 so the dividend does not surprise you at tax time.
5 Common Mistakes Alaska Workers Make
- Expecting a state tax refund. There is no Alaska income tax, so there is no state return and no state refund. Your only filing is federal.
- Forgetting the PFD is federally taxable. The dividend is tax free at the state level because Alaska has no income tax, but the IRS taxes it. Report every dollar on your federal return.
- Copying advice from taxed states. Tips about state deductions or state W-4 forms do not apply in Alaska. Check figures with an alaska take home pay calculator built for Alaska rules.
- Assuming no sales tax everywhere. Anchorage and Fairbanks charge 0 percent, but Juneau charges 5 percent and Kodiak 7 percent. Check your borough before you budget.
- Judging a job offer on gross pay alone. Two offers with the same salary can net very different amounts once benefits and pay frequency change. An alaska salary calculator turns each offer into a per paycheck figure so you compare net pay, not gross pay.
Frequently Asked Questions
Why is there no Alaska income tax on my paycheck?
Alaska does not tax earned income at the state level. Alaska has no personal income tax, so employers withhold $0 for state tax on every paycheck, whatever you earn.
Does Alaska have a state income tax return to file?
No. Alaska has no personal income tax return for individuals. If wages are your income, you file only a federal return. The Department of Revenue collects oil taxes, corporate tax, and excise taxes, not individual income tax.
Does Alaska have a state sales tax?
No. Alaska has no statewide sales tax. Boroughs and cities can levy their own local sales tax, and more than 100 localities do. Anchorage and Fairbanks charge 0 percent, Juneau charges 5 percent, and Kodiak charges 7 percent.
What is the Permanent Fund Dividend?
The Permanent Fund Dividend is an annual payment from Alaska's oil wealth to eligible residents. The 2025 dividend was $1,000. You must have been a full year resident for the prior calendar year and intend to remain in Alaska. The dividend is taxable federally but not by the state.
Is the PFD taxable?
Yes, for federal tax purposes. The Alaska Department of Revenue says the dividend is taxable for federal income tax and must be reported on your federal return. Alaska itself takes no state tax from it, because Alaska has no state income tax.
What is the minimum wage in Alaska?
The current Alaska minimum wage is $13.00 an hour as of July 1, 2025. Voters approved Ballot Measure 1 in 2024, which raises the rate to $14.00 on July 1, 2026, and $15.00 on July 1, 2027. From 2028 the rate adjusts each year with inflation.
Do Anchorage or Juneau charge a local income tax?
No. No Alaska city or borough can charge a local income tax. Anchorage and Juneau take $0 in local income tax on wages. Juneau does charge a 5 percent local sales tax, while Anchorage charges no local sales tax at all.
Does Alaska allow a tip credit?
No. Alaska is one of a small group of states that prohibits tip credits. Servers, bartenders, and other tipped workers must receive the full state minimum wage in cash, and tips stay entirely theirs on top.
Does Alaska tax overtime pay or bonuses?
Alaska takes $0 from overtime and $0 from bonuses. Federally, employers often withhold a flat 22 percent on bonuses, and Social Security and Medicare still apply. Alaska requires overtime at time and a half for hours over 8 in a day or 40 in a week.
What should I do if my Alaska paycheck shows state income tax withheld?
Ask payroll to fix it. Alaska has no state income tax on earned income and no withholding requirements, so a state withholding line on an Alaska paycheck is a payroll error. Compare each line against a paycheck calculator alaska workers use for a second opinion.
Does Alaska tax retirement income?
No. Alaska taxes no form of individual income, including pensions, 401k withdrawals, and Social Security benefits. That makes the state popular with retirees, though federal tax still applies to much of that income.
Can I use this if I am paid hourly instead of salary?
Yes. Enter your hourly wage and hours, and the alaska salary calculator logic works the same way: gross pay first, then federal tax, Social Security, and Medicare. Alaska state tax stays $0 for hourly workers too.
What is an Alaska paycheck?
An Alaska paycheck is your take-home pay after federal tax and other deductions, with no Alaska state income tax withheld.
Related Calculators
- Paycheck Calculator
- Texas Paycheck Calculator
- Florida Paycheck Calculator
- California Paycheck Calculator
- Illinois Paycheck Calculator
- Nevada Paycheck Calculator
- Washington Paycheck Calculator
- Tennessee Paycheck Calculator
- South Dakota Paycheck Calculator
- Wyoming Paycheck Calculator
- Salary to Hourly Calculator
- Tip Calculator
Disclaimer
This page provides estimates for education only. Your actual withholding depends on your W-4, benefits, and employer payroll setup. This is not tax advice. For your own tax decisions, talk to a qualified tax professional.
Sources
Alaska Department of Revenue, Permanent Fund Dividend Division; Alaska Department of Revenue, Tax Division; Alaska Department of Labor and Workforce Development, Wage and Hour; IRS Publication 15-T (2026); Social Security Administration.