ALASKA PAYCHECK CALCULATOR 2026

Alaska has no state income tax — repealed in 1980 and not reinstated since. Alaska workers pay only federal income tax, Social Security, Medicare, and a small 0.50% Alaska Unemployment Insurance employee contribution on the first $54,200 of wages. As a bonus, eligible Alaska residents receive an annual Permanent Fund Dividend (PFD) — a cash payment from Alaska’s oil-funded sovereign wealth fund. The 2025 PFD was $1,000 per eligible resident; the 2026 amount has not yet been set by the Legislature. Use the calculator to estimate your Alaska take-home pay.

WHAT'S ON AN ALASKA PAYCHECK IN 2026

Alaska paychecks have just three deduction lines — the simplest paycheck of any U.S. state, sharing that distinction with Florida, Nevada, Tennessee, Texas, and Wyoming:

• Federal Income Tax — Progressive 10%–37% brackets applied after the 2026 federal standard deduction ($16,100 Single / $32,200 MFJ / $24,150 HOH). Alaska workers benefit fully from every dollar of the federal standard deduction — there is no state income tax layer to erode the advantage.
• FICA (Social Security + Medicare) — Social Security at 6.2% of wages up to the $176,100 wage base. Medicare at 1.45% on all wages with no cap. An additional 0.9% Medicare surtax on wages above $200,000 (individual).
• Alaska UI Employee Contribution — 0.50% of wages up to the $54,200 taxable wage base (2026). Maximum annual contribution: $271. Confirmed by Alaska DOLWD 2026 rate schedule.

Example — Single, $70,000 gross wages (2026):
Federal Taxable = $70,000 − $16,100 = $53,900
Federal Tax = ~$6,772
Social Security = 6.2% × $70,000 = $4,340
Medicare = 1.45% × $70,000 = $1,015
AK UI = 0.50% × $54,200 = $271
Alaska State Tax = $0
Annual Take-Home = ~$57,602 (~$4,800/month)

ALASKA UI EMPLOYEE CONTRIBUTION — 2026 DETAILS

THE ALASKA PERMANENT FUND DIVIDEND — HISTORY AND 2026 OUTLOOK

The PFD is one of the most distinctive features of living in Alaska. Every eligible resident — man, woman, and child — receives the same annual payment. Here is the dividend history and what to expect for 2026:

A family of four all eligible for the PFD received $4,000 in 2025 ($1,000 × 4). In the record year of 2022, that same family received $13,136 ($3,284 × 4). The PFD is taxable as ordinary income on federal returns — reported on Form 1099-MISC — but since Alaska has no state income tax, there is no Alaska tax on the dividend.

ALASKA MINIMUM WAGE SCHEDULE

A worker earning Alaska's minimum wage for all of 2026 ($13.00/hr for Jan–Jun, $14.00/hr for Jul–Dec, assuming full-time 40 hrs/week) earns approximately $28,080 for the year. At that income, federal income tax is $0 after the $16,100 standard deduction and 10% bracket, and take-home is near $24,000 — before adding the PFD.

ALASKA VS ALL NO-INCOME-TAX STATES — $70,000 TAKE-HOME

Alaska's $271 AK UI contribution puts it very slightly behind the pure no-deduction states like Florida, Nevada, and Wyoming, but Alaska's unique PFD advantage can more than offset this for qualifying residents. A Single Alaskan receiving the $1,000 PFD effectively raises their annual income by $1,000 — more than offsetting the $271 UI contribution — resulting in a net benefit of ~$729 compared to living in a no-income-tax state with no PFD.

WHY ALASKA HAS NO INCOME TAX — BRIEF HISTORY

Alaska enacted an individual income tax in 1949, before statehood. When oil began flowing through the Trans-Alaska Pipeline in 1977, revenues surged dramatically. By 1980, with oil money filling state coffers, the Alaska Legislature repealed the personal income tax — retroactively effective for tax year 1979. The Alaska Constitution's Article IX requires a balanced budget, but oil and gas revenues plus Permanent Fund earnings have funded state services since. In recent years, declining oil revenues have prompted ongoing debates about reinstating a personal income tax, but as of 2026, no such tax exists. Alaska also has no statewide sales tax, though some cities and boroughs levy local sales taxes averaging about 1.82% combined.

2026 FEDERAL TAX BRACKETS — SINGLE FILERS

ALASKA PAYCHECK CALCULATOR — FAQs

Does Alaska have a state income tax in 2026?
No. Alaska has had no individual state income tax since 1980, when it was repealed following the windfall from Trans-Alaska Pipeline oil revenues. As of 2026, there is no Alaska state income tax on wages, salaries, or any other form of income. Alaska is one of nine U.S. states without a personal income tax. The Alaska Legislature has debated reinstating one during budget shortfall years, but no income tax has been enacted.

What is the Alaska Permanent Fund Dividend?
The PFD is an annual cash payment to every eligible Alaska resident from the state's oil-funded sovereign wealth fund. The 2025 PFD was $1,000 per person, paid starting October 2, 2025. The 2026 PFD amount will be determined by the Alaska Legislature. Applications for the 2026 dividend were open January 1–March 31, 2026. The PFD is taxable as federal income but not subject to any Alaska state tax.

What payroll taxes come out of an Alaska paycheck?
Three deductions: (1) Federal income tax using 2026 IRS tables; (2) FICA — Social Security 6.2% up to $176,100 and Medicare 1.45%; and (3) Alaska UI employee contribution of 0.50% on the first $54,200 in wages (max $271/year). No state income tax, no state SDI, no state PFML deduction.

What is Alaska's minimum wage in 2026?
Alaska's minimum wage was $13.00/hour from July 1, 2025, and increases to $14.00/hour on July 1, 2026, under the schedule established by Alaska Ballot Measure 1 (2024). The rate will continue increasing to $15.00/hour in 2027.

How much will I take home on a $70,000 salary in Alaska?
Single filer: Federal tax ~$6,772. SS ~$4,340. Medicare ~$1,015. AK UI ~$271. No state tax. Estimated annual take-home: ~$57,602 (~$4,800/month). Plus the annual PFD — $1,000 in 2025, amount TBD for 2026.

Run your Alaska estimate again anytime: Alaska Paycheck Calculator 2026