What is the alaska income tax calculator?
In short
Alaska has no state income tax, so your paycheck is reduced only by federal income tax and FICA — no state withholding. Alaska runs on oil — production (severance) taxes and royalties plus earnings from the Alaska Permanent Fund. There's no statewide sales or property tax either. Alaska repealed its personal income tax in 1980 after North Slope oil came online — the only US state to repeal an existing income tax.
Because Alaska has no state income tax, this page focuses on what actually funds the state and what your federal-only tax looks like. Alaska runs on oil — production (severance) taxes and royalties plus earnings from the Alaska Permanent Fund. There's no statewide sales or property tax either.
How to use this calculator
- 1Add your annual gross income.
- 2Pick your filing status to size the federal tax.
- 3Alaska is pre-selected with $0 state tax — switch states to compare against one that does tax income.
- 4Add 401(k)/HSA contributions to watch your federal tax (not state) fall.
The formula
- federal tax
- — Federal income tax from progressive brackets
- AK tax
- — Alaska: no state income tax
- FICA
- — Social Security 6.2% + Medicare 1.45%
Worked example
The scenario
What funds Alaska if not income tax?
The result
Alaska runs on oil — production (severance) taxes and royalties plus earnings from the Alaska Permanent Fund. There's no statewide sales or property tax either. A $75,000 single filer keeps ~$61,593 (federal + FICA only).
Common use cases
- Understanding how Alaska pays for services without an income tax
- there is no statewide sales tax; localities may add their own (low average combined ~1.8%)
- the 2025 Permanent Fund Dividend was $1,000 per eligible resident
- Checking whether Alaska taxes any income (it doesn't)
Limitations & assumptions
- Alaska has no state income tax, so this shows federal + FICA only. Alaska not only doesn't tax personal income — it pays residents an annual Permanent Fund Dividend from oil royalties (the 2025 PFD was $1,000). It does levy a corporate income tax.
- Alaska does impose a corporate income tax despite having no individual income tax.
- Federal tax uses current brackets and the standard deduction unless you itemize.
- Use it for planning; it isn't a substitute for a tax professional.
Frequently asked questions
Does Alaska have a state income tax?
If Alaska has no income tax, how does it pay for things?
Does Alaska tax any income at all?
What's the take-home on $75,000 in Alaska?
Is moving to Alaska worth it for taxes?
Disclaimer: KalkWise calculators are provided for general informational and educational purposes only and do not constitute financial, investment, tax, or legal advice. Results are estimates based on the figures you enter and the assumptions described above. Actual outcomes will vary. Consult a qualified professional before making financial decisions.