Alaska paycheck taxes at a glance
| State income tax | None on wages |
|---|---|
| Local income tax | None on wages |
| State payroll deductions | AK UI 0.5% to $54,200 |
| Reciprocity | None |
| Figures | Tax year 2026 |
Every paycheck also has federal income tax, Social Security (6.2% up to $184,500) and Medicare (1.45%), worked out with the same 2026 IRS figures as ourmain paycheck calculator.
Worked examples
A $60,000 salary in Anchorage, single, paid every two weeks
| Per paycheck | Per year | |
|---|---|---|
| Gross pay | $2,307.69 | $60,000 |
| Federal income tax | − $193.08 | − $5,020 |
| Social Security and Medicare | − $176.54 | − $4,590 |
| AK UI | − $10.42 | − $271 |
| Take-home pay | $1,927.65 | $50,119 |
Single, paid every two weeks (26 paychecks). The salary is above the $54,200 wage base, so the UI deduction reaches its $271 maximum. All other deductions are federal.
A $110,000 household in Fairbanks, married filing jointly with two children
| Per paycheck | Per year | |
|---|---|---|
| Gross pay | $4,230.77 | $110,000 |
| 401(k) at 5% | − $211.54 | − $5,500 |
| Federal income tax | − $145.38 | − $3,780 |
| Social Security and Medicare | − $323.65 | − $8,415 |
| AK UI | − $10.42 | − $271 |
| Take-home pay | $3,539.77 | $92,034 |
Married filing jointly, 2 children, paid every two weeks (26 paychecks). Federal income tax is the only income tax here, and the child tax credit cuts it further. The UI contribution is capped at $271 no matter how high the salary.
Employee unemployment insurance: 0.5% up to $54,200
The employee rate is 0.50% for every worker in 2026, unchanged from 2025. It applies only to the first $54,200 you earn from an employer this year, up $2,500 from 2025, because the wage base is set at 75% of the state’s average annual wage. Once you pass it, the deduction stops until January. Employers pay their own share on top, from 1.00% to 5.40% depending on their record. This calculator spreads the yearly amount evenly over your paychecks.
No income tax, but local sales taxes
Alaska repealed its personal income tax in 1980, and no city or borough taxes wages. Instead, many cities and boroughs charge their own sales tax, and some charge property tax, so the cost of living varies by place more than your paycheck does. If you move to Alaska from a state with an income tax, your take-home pay will jump; compare with the Washington paycheck calculator, another state without a wage tax.
The Permanent Fund Dividend and your federal tax
Eligible residents receive a yearly Permanent Fund Dividend from the state. Alaska does not tax it, but it counts as income on your federal return. Because it is not paid through payroll, no federal tax is withheld from it. If your household receives several dividends, you may owe a little more at filing time, which you can cover with extra withholding on your W-4.
Alaska payroll deductions besides income tax
- Unemployment Insurance (employee contribution): Every employee pays 0.50% of wages up to the 2026 taxable wage base of $54,200, so at most $271 a year.