Alaska Paycheck Calculator — $0 State Tax, No SDI, No Sales Tax, $14/hr Min Wage + $1,000 PFD Yearly
Calculate your exact take-home pay in Alaska with zero state income tax. No SDI. No local tax in Anchorage or any Alaska city. No state sales tax. Minimum wage $13.00/hr (rising to $14.00/hr July 1, 2026). Every resident receives the Alaska PFD of ~$1,000/year — state tax-free but taxable as federal income. Includes Alaska UI tax (0.50%). Updated for 2026.
- 0% State Tax
- No SDI Tax
- No Local Tax
- 0% State Sales Tax
- PFD $1,000+ Yearly
- Minimum wage $14.00/hr
- 2026 Tax Brackets
- Free & No Signup
🏔️ Alaska Paycheck Calculator 2026
Federal + FICA + AK UI taxes — zero state income tax, no SDI, no local tax
Updated for 2026 Tax Year✅ Alaska: $0 state tax • No SDI • No local tax • No state sales tax
Estimated Net Pay (Take-Home)
$0.00
per paycheck
0.0%
Effective Tax Rate
100%
Take-Home %
$0
Annual Gross
Per Paycheck Breakdown
| Item | Amount |
|---|
Annual Summary
$0
Gross Income
$0
Federal Tax
$0
Social Security
$0
Medicare
$0
AK UI Tax
$0
Net Take-Home
Alaska Permanent Fund Dividend (PFD): Alaska residents received $1,000/person in 2025, paid each October. Note: PFD is Alaska state tax-free, but IS taxable as federal income. This payment is on top of your paycheck — no other state does this.
Alaska Tax Summary: $0 state income tax (0%) • No SDI (State Disability Insurance) • No local income tax in Anchorage, Juneau, Fairbanks, or any AK city • No state sales tax (0%) • AK UI employee contribution: 0.50% on first $54,200 wages (max $271/year) • You pay federal taxes + FICA + AK UI only • Minimum wage: $13.00/hr (Jan–Jun 2026) | $14.00/hr (from Jul 1, 2026) • Overtime: 1.5x after 40 hours/week • PFD ~$1,000/year (state tax-free, federally taxable) • Oil royalty & employer UI taxes paid by employers only.
This calculator provides estimates for informational purposes only. Actual withholding may vary.
Alaska minimum wage: $13.00/hr (Jan–Jun 2026) | $14.00/hr (Jul 1, 2026+) • Federal brackets: 2026 IRS guidance • Consult a tax professional for advice.
Alaska minimum wage: $13.00/hr (Jan–Jun 2026) | $14.00/hr (Jul 1, 2026+) • Federal brackets: 2026 IRS guidance • Consult a tax professional for advice.
✅ Link copied to clipboard!
Table of Contents
$0 State Tax, No SDI, No Local Tax, No Sales Tax, $14/hr Min Wage + ~$1,000 PFD Yearly
Zero State Income Tax
Alaska is one of the best states for maximizing your take-home pay. Alaska does not tax your wages. You pay zero dollars in state income tax on your paycheck. This applies to all earned income including salaries, hourly wages, bonuses, commissions, overtime pay, and self-employment income. For example, if you earn $100,000 per year in Alaska, you pay zero dollars in state income tax. The same salary in California would cost you approximately $9,300 in state tax plus $1,100 in SDI. That is over $10,400 more in your pocket every year just by living in Alaska. Alaska is one of nine states with no state income tax. The others are Texas, Florida, Nevada, South Dakota, Wyoming, Washington, Tennessee, and New Hampshire.
No SDI Tax — Alaska’s Hidden Advantage
Many workers moving from California ask: does Alaska have SDI? The answer is no. Alaska does not have State Disability Insurance. Unlike California where workers pay 1.1% SDI on their gross pay, Alaska workers pay zero. On a $100,000 salary, this saves you over $1,100 per year compared to California.
No Local Income Tax — Anchorage, Juneau, Fairbanks All Zero
No city in Alaska charges local income tax. Anchorage, Juneau, Fairbanks, and Sitka all have zero local income tax. Unlike New York City where you pay up to 3.9% local tax, or Philadelphia where you pay approximately 3.8%, every dollar you earn in Alaska stays in your pocket at the local level.
No State Sales Tax — Unique Alaska Advantage
Alaska is one of only five states with no state sales tax. The state sales tax rate is zero percent. Some local cities may charge a local sales tax up to 7.5% on goods purchased in that city, but this does not affect your paycheck. Only Alaska, Delaware, Montana, New Hampshire, and Oregon offer this advantage.
Permanent Fund Dividend — You Get Paid to Live Here
Unlike any other state, Alaska pays its residents every year. The Permanent Fund Dividend (PFD) is an annual payment from Alaska’s oil royalty savings account. The 2025 PFD was $1,000 per person, paid each October. The 2026 amount will be determined by the Alaska Legislature. Important: The PFD is Alaska state tax-free, but it is taxable as federal income. You must report it on your federal tax return (Form 1040). For a family of four, that means approximately $4,000 of extra income every year. To qualify, you must live in Alaska for a full calendar year and intend to remain a resident. The PFD is not deducted from your paycheck — it is an additional payment you receive directly from the state. No other state offers anything like this.
Minimum Wage 2026 — $13.00/hr Rising to $14.00/hr
Alaska minimum wage is $13.00 per hour from January 1 through June 30, 2026, increasing to $14.00 per hour from July 1, 2026. The next scheduled increase is $15.00 per hour on July 1, 2027. This was set by Alaska Ballot Measure 1, approved by voters in November 2024. Alaska minimum wage is significantly higher than the federal minimum wage of $7.25 per hour. If you work 40 hours per week at $14.00 per hour, you earn $560.00 per week before taxes. Overtime pay is 1.5x your regular rate for all hours worked over 40 hours per week.
Alaska UI Employee Tax — 0.50%
Alaska employees pay a small Unemployment Insurance (UI) contribution of 0.50% on the first $54,200 of wages per year. The maximum annual amount is $271 per year, or approximately $10.42 per biweekly paycheck. This is automatically withheld from your paycheck and is included in our calculator above. This is far smaller than California SDI (1.1%), which costs over $1,100 per year on a $100,000 salary. Alaska UI is the only employee-paid state tax in Alaska.
What About Oil Royalty Tax
Some websites confuse oil royalty taxes with employee taxes. Alaska has oil royalty taxes on oil extraction, but these are paid by oil companies only — not by employees. You pay zero dollars of these taxes from your paycheck. Your take-home pay is not affected.
Who Benefits Most from Alaska Taxes
High earners making over $150,000 save the most by avoiding state income tax entirely. On a $200,000 salary, Alaska saves you over $18,000 per year compared to California. Families benefit from the Permanent Fund Dividend. A family of four receives approximately $4,000 per year directly from the state. Hourly workers benefit from the higher minimum wage of $14.00 per hour from July 2026, no SDI, and no local tax. Remote workers benefit because Alaska does not tax wages regardless of where your employer is located. Retirees benefit from zero tax on Social Security, 401k, IRA, and pension income at the state level.
How Alaska Compares to Other No-Tax States
On a $100,000 salary for a single filer with no dependents, your take-home pay is similar across Alaska, Texas, Florida, South Dakota, and Wyoming because all have zero state income tax and zero SDI. However, Alaska offers two advantages other no-tax states do not. First, Alaska has zero state sales tax, while Texas charges 6.25%, Florida 6%, South Dakota 4.5%, and Wyoming 4%. Second, Alaska is the only state that pays residents the Permanent Fund Dividend of approximately $1,000 per year. No other no-tax state does this.
A Note on Federal Taxes
While Alaska has no state income tax, no SDI, no local tax, and no state sales tax, you still pay federal income tax, Social Security tax, Medicare tax, and the small Alaska UI contribution of 0.50%. Our calculator includes all of these so you get an accurate estimate of your take-home pay. The 2026 federal tax brackets range from 10% to 37%. Social Security tax is 6.2% on the first $176,100 you earn. Medicare tax is 1.45% on all earnings, with an additional 0.9% surtax for high earners over $200,000 (single) or $250,000 (married filing jointly). Use our calculator above to see your exact Alaska take-home pay. Change your salary, filing status, and deductions to match your situation.
Real Example — What a $100,000 Salary Looks Like in Alaska
Real Example — What a $100,000 Salary Looks Like in Alaska
Let us walk through a real example. Meet Sarah. She lives in Anchorage, Alaska and earns $100,000 per year. She is single, has no dependents, and contributes 5% to her 401k. She also pays $150 per paycheck for health insurance. Here is exactly how her paycheck breaks down step by step.
Step 1 — Gross Pay Per Year
Sarah earns $100,000 per year. She gets paid every two weeks, which means 26 paychecks per year. $100,000 divided by 26 equals $3,846.15 gross pay per paycheck before any deductions.
Step 2 — Pre-Tax Deductions
Sarah contributes 5% of her salary to her 401k. That is $3,846.15 times 0.05 equals $192.31 per paycheck going to her retirement account. She also pays $150 per paycheck for health insurance. Both are pre-tax deductions, meaning they come out before taxes are calculated. Total pre-tax deductions per paycheck: $192.31 + $150.00 = $342.31
Step 3 — Taxable Gross Pay
Taxable gross pay is what remains after pre-tax deductions are removed. $3,846.15 − $342.31 = $3,503.84 taxable gross per paycheck This is the amount on which Sarah pays federal income tax.
Step 4 — Federal Income Tax
To calculate federal tax, we first annualize the taxable gross pay. $3,503.84 times 26 paychecks equals $91,099.84 annual taxable income. Now subtract the 2026 federal standard deduction for a single filer, which is $15,000. $91,099.84 − $15,000 = $76,099.84 taxable income Now apply the 2026 federal tax brackets for a single filer: 10% on first $11,925 = $1,192.50
12% on $11,926 to $48,475 = $4,386.00
22% on $48,476 to $76,099 = $6,077.06 Total annual federal tax = $11,655.56
Federal tax per paycheck = $11,655.56 ÷ 26 = $448.29
Step 5 — State Income Tax
Sarah lives in Alaska. Alaska has zero state income tax. State tax per paycheck = $0.00 This is one of the biggest advantages of living and working in Alaska.
Step 6 — Social Security and Medicare
FICA taxes are calculated on gross pay before pre-tax deductions. Social Security: $3,846.15 × 6.2% = $238.46 per paycheck
Medicare: $3,846.15 × 1.45% = $55.77 per paycheck Total FICA per paycheck = $294.23
Step 7 — Alaska UI Employee Tax
Alaska employees pay 0.50% UI tax on the first $54,200 of wages per year. Annual UI tax: $54,200 × 0.50% = $271.00 per year
UI tax per biweekly paycheck = $271.00 ÷ 26 = $10.42 Note: Once Sarah’s wages exceed $54,200 for the year, the UI tax stops automatically for the rest of the year.
Step 8 — Net Take-Home Pay
Now subtract all deductions from gross pay: Gross pay: $3,846.15
Minus 401k (5%): −$192.31
Minus health insurance: −$150.00
Minus federal income tax: −$448.29
Minus state tax (Alaska): −$0.00
Minus Social Security: −$238.46
Minus Medicare: −$55.77
Minus Alaska UI tax: −$10.42 Net take-home pay per biweekly paycheck: $2,750.90
Summary — Where Did Sarah’s Money Go
| Deduction | Per Paycheck | Per Year | % of Gross |
|---|---|---|---|
| 401k (5%) | $192.31 | $5,000 | 5.0% |
| Health Insurance | $150.00 | $3,900 | 3.9% |
| Federal Income Tax | $448.29 | $11,655 | 11.7% |
| State Tax (Alaska) | $0.00 | $0 | 0.0% |
| Social Security | $238.46 | $6,200 | 6.2% |
| Medicare | $55.77 | $1,450 | 1.45% |
| Alaska UI Tax | $10.42 | $27 | 0.27% |
| Net Take-Home | $2,750.90 | $71,523 | 71.4% |
401k (5%)
Per Paycheck:$192.31
Per Year:$5,000
% of Gross:5.0%
Health Insurance
Per Paycheck:$150.00
Per Year:$3,900
% of Gross:3.9%
Federal Income Tax
Per Paycheck:$448.29
Per Year:$11,655
% of Gross:11.7%
State Tax (Alaska)
Per Paycheck:$0.00
Per Year:$0
% of Gross:0.0%
Social Security
Per Paycheck:$238.46
Per Year:$6,200
% of Gross:6.2%
Medicare
Per Paycheck:$55.77
Per Year:$1,450
% of Gross:1.45%
Alaska UI Tax
Per Paycheck:$10.42
Per Year:$27
% of Gross:0.27%
Net Take-Home
Per Paycheck:$2,750.90
Per Year:$71,523
% of Gross:71.4%
Sarah keeps approximately 71% of her gross pay. She pays zero state tax, zero SDI, zero local tax, and zero state sales tax because she lives in Alaska. Plus she will receive the Alaska Permanent Fund Dividend of approximately $1,000 per year — note that the PFD is Alaska state tax-free but is taxable as federal income.
What If Sarah Lived in California Instead
If Sarah earned the same $100,000 salary in California, her net pay would be approximately $2,393 per biweekly paycheck. Alaska gives her $357 more per paycheck. That is $714 more per month or $9,282 more per year. The difference comes from California’s 9.3% state tax and 1.1% SDI tax, neither of which exist in Alaska.
What If Sarah Lived in Texas Instead
If Sarah earned the same $100,000 in Texas, her net pay would be nearly identical to Alaska because Texas also has zero state income tax and zero SDI. However, Texas has a state sales tax of 6.25% and does not pay an annual dividend to residents. Alaska’s PFD gives Sarah approximately $1,000 more per year than Texas.
What If Sarah Increased Her 401k to 10%
If Sarah increased her 401k contribution from 5% to 10%, her 401k deduction would increase from $192.31 to $384.62 per paycheck. Her taxable income would decrease, so her federal tax would drop by about $42 per paycheck. Her net pay would only decrease by about $150 per paycheck while saving an additional $5,000 per year for retirement. This is the power of pre-tax deductions.
What If Sarah Was Married Filing Jointly
If Sarah was married and filing jointly with the same $100,000 household income, her federal tax would drop significantly because the standard deduction doubles to $30,000 and the tax brackets are wider. Her net pay would increase by approximately $160 per paycheck compared to filing single.
Use Our Calculator to Test Your Own Numbers
Try our calculator above. Change the salary to your actual earnings. Change the filing status. Add your dependents. Increase or decrease your 401k contribution. See exactly how much you take home in Alaska. The calculator updates instantly. And remember, on top of your paycheck, you will also receive the Alaska Permanent Fund Dividend every year.
Alaska vs Other No-Tax States — Which State is Best for Your Paycheck?
Choosing where to live and work has a huge impact on your take-home pay. Alaska has no state income tax. Texas, Florida, South Dakota, and Wyoming also have no state income tax. California has one of the highest state taxes in the country. Here is the real difference so you can decide which state is best for your situation.
Same Salary, Different State — The Real Difference
Let us compare a $100,000 salary across six states. Same filing status of single, same deductions, same everything. Only the state changes.
| Tax Category | Alaska | Texas | Florida | South Dakota | Wyoming | California |
|---|---|---|---|---|---|---|
| State Income Tax | 0% | 0% | 0% | 0% | 0% | 9.3% |
| SDI Tax | None | None | None | None | None | 1.1% |
| Local Income Tax | None | None | None | None | None | None |
| State Sales Tax | 0% | 6.25% | 6% | 4.5% | 4% | 7.25% |
| Min Wage 2026 | $14.00/hr (Jul) | $7.25/hr | $13.00/hr | $11.85/hr | $7.25/hr | $16.50/hr |
| Annual Dividend | ~ $1,000 PFD | None | None | None | None | None |
| Employee UI Tax | 0.50% | None | None | None | None | None |
| Take-Home $100k | ~$43,800/yr | ~$43,800/yr | ~$43,800/yr | ~$43,800/yr | ~$43,800/yr | ~$34,900/yr |
| PFD Taxable? | Federally Yes | — | — | — | — | — |
Alaska
State Income Tax:0%
SDI Tax:None
Local Income Tax:None
State Sales Tax:0%
Min Wage 2026:$14.00/hr (Jul)
Annual Dividend:~$1,000 PFD
Employee UI Tax:0.50%
Take-Home $100k:~$43,800/yr
PFD Taxable?:Federally Yes
Texas
State Income Tax:0%
SDI Tax:None
Local Income Tax:None
State Sales Tax:6.25%
Min Wage 2026:$7.25/hr
Annual Dividend:None
Employee UI Tax:None
Take-Home $100k:~$43,800/yr
PFD Taxable?:—
Florida
State Income Tax:0%
SDI Tax:None
Local Income Tax:None
State Sales Tax:6%
Min Wage 2026:$13.00/hr
Annual Dividend:None
Employee UI Tax:None
Take-Home $100k:~$43,800/yr
PFD Taxable?:—
South Dakota
State Income Tax:0%
SDI Tax:None
Local Income Tax:None
State Sales Tax:4.5%
Min Wage 2026:$11.85/hr
Annual Dividend:None
Employee UI Tax:None
Take-Home $100k:~$43,800/yr
PFD Taxable?:—
Wyoming
State Income Tax:0%
SDI Tax:None
Local Income Tax:None
State Sales Tax:4%
Min Wage 2026:$7.25/hr
Annual Dividend:None
Employee UI Tax:None
Take-Home $100k:~$43,800/yr
PFD Taxable?:—
California
State Income Tax:9.3%
SDI Tax:1.1%
Local Income Tax:None
State Sales Tax:7.25%
Min Wage 2026:$16.50/hr
Annual Dividend:None
Employee UI Tax:None
Take-Home $100k:~$34,900/yr
PFD Taxable?:—
Alaska, Texas, Florida, South Dakota, and Wyoming all give you the same take-home pay from wages on the same salary because all have zero state income tax, zero SDI, and zero local tax. However, Alaska has two unique advantages over every other no-tax state — zero state sales tax and the Permanent Fund Dividend.
The Difference — How Much More You Take Home vs California
Alaska gives you approximately $8,900 more per year than California on a $100,000 salary. That is $742 more per month or $371 more per biweekly paycheck. The difference comes from California’s 9.3% state tax and 1.1% SDI tax, neither of which exist in Alaska.
What About Higher Salaries — The Difference Grows
The more you earn, the bigger the advantage over California. At a $150,000 salary, Alaska saves you approximately $14,000 per year vs California. At a $200,000 salary, Alaska saves you approximately $22,000 per year vs California. At a $300,000 salary, Alaska saves you approximately $31,000 per year vs California. Texas, Florida, South Dakota, and Wyoming offer the same wage savings as Alaska at every income level. But none of them offer zero state sales tax or the annual PFD payment.
What About Sales Tax — The Alaska Advantage
While take-home pay from wages is identical across no-tax states, sales tax varies significantly. Alaska has zero state sales tax. Some local cities may charge up to 7.5% on goods, but there is no state-level sales tax. Texas charges 6.25%. Florida charges 6%. South Dakota charges 4.5%. Wyoming charges 4%. California charges 7.25%. If you spend $3,000 per month on taxable goods, here is what you pay in state sales tax each month: Alaska — $0
Texas — $187
Florida — $180
South Dakota — $135
Wyoming — $120
California — $217 Alaska is the only no-tax state where you also pay zero state sales tax.
What About Minimum Wage — Comparison Across States
Alaska minimum wage is $13.00 per hour from January through June 2026, rising to $14.00 per hour from July 1, 2026. The next increase is $15.00 per hour on July 1, 2027. Texas minimum wage is $7.25 per hour. Florida minimum wage is $13.00 per hour. South Dakota minimum wage is $11.85 per hour. Wyoming minimum wage is $7.25 per hour. California minimum wage is $16.50 per hour. Among no-tax states, Alaska now offers the highest minimum wage at $14.00 per hour from July 2026, ahead of Florida at $13.00 per hour and South Dakota at $11.85 per hour.
The Permanent Fund Dividend — Alaska’s Unique Advantage
This is the most important difference between Alaska and every other state. Alaska pays its residents the Permanent Fund Dividend every year. The 2025 PFD was $1,000 per person. The 2026 amount will be set by the Alaska Legislature. Important: The PFD is Alaska state tax-free but is taxable as federal income. You must report it on your federal tax return. For a single person, that is $1,000 of extra income every year. For a family of four, that is $4,000 per year. No other state offers anything like this. Texas, Florida, South Dakota, Wyoming, and California all pay zero annual dividend to residents.
Alaska vs Texas — Which is Better for Your Paycheck?
Both Alaska and Texas have zero state income tax and zero SDI. Take-home pay from wages is identical on the same salary. Alaska advantages: zero state sales tax vs Texas 6.25%, PFD of ~$1,000/year, higher minimum wage at $14.00/hr vs Texas $7.25/hr, unique outdoor lifestyle. Texas advantages: larger job market in Austin, Dallas, Houston, and San Antonio, no winter, faster growing economy, lower cost of living in some areas.
Alaska vs Florida — Which is Better for Your Paycheck?
Both Alaska and Florida have zero state income tax and zero SDI. Take-home pay from wages is identical on the same salary. Alaska advantages: zero state sales tax vs Florida 6%, PFD of ~$1,000/year, higher minimum wage at $14.00/hr (Jul 2026) vs Florida $13.00/hr, lower population density. Florida advantages: warm weather year round, miles of beaches, no inheritance tax, large retiree community.
Alaska vs South Dakota — Which is Better for Your Paycheck?
Both Alaska and South Dakota have zero state income tax and zero SDI. Take-home pay from wages is identical on the same salary. Alaska advantages: zero state sales tax vs South Dakota 4.5%, PFD of ~$1,000/year, higher minimum wage at $14.00/hr vs South Dakota $11.85/hr. South Dakota advantages: Black Hills and Mount Rushmore, lower cost of living in some areas, quieter lifestyle.
Alaska vs Wyoming — Which is Better for Your Paycheck?
Both Alaska and Wyoming have zero state income tax and zero SDI. Take-home pay from wages is identical on the same salary. Alaska advantages: zero state sales tax vs Wyoming 4%, PFD of ~$1,000/year, higher minimum wage at $14.00/hr vs Wyoming $7.25/hr. Wyoming advantages: Yellowstone and Grand Teton National Parks, lower population density, zero capital gains tax for investors.
Who Should Choose Alaska?
Alaska is best for people who want to maximize total income including the PFD. It is best for those who value zero state sales tax. It is best for hourly workers who benefit from the $14.00/hr minimum wage from July 2026. It is best for families because the PFD pays approximately $4,000 per year for a family of four. It is best for remote workers who keep their full salary with zero state tax. It is best for anyone who loves fishing, hiking, camping, and wildlife.
Who Should Choose Texas?
Texas is best for workers in energy, technology, and healthcare who want a large job market. No state income tax, lower cost of living in some areas, and no winter in most parts of the state.
Who Should Choose Florida?
Florida is best for retirees because there is no state tax on Social Security, 401k, IRA, or pension income. No inheritance tax, no estate tax, warm weather year round, and minimum wage of $13.00 per hour.
Who Should Choose South Dakota?
South Dakota is best for people who want low population density, a quiet lifestyle, and no state income tax. Minimum wage is $11.85 per hour.
Who Should Choose Wyoming?
Wyoming is best for outdoor recreation lovers and investors who want zero capital gains tax and no state income tax. Minimum wage is $7.25 per hour.
Who Should Choose California?
California is best for people in entertainment, certain tech roles, and specialized industries that only exist there. It is best if your salary is significantly higher than other states, enough to offset the 9.3% state tax and 1.1% SDI. California minimum wage is $16.50 per hour.
Frequently Asked Questions — Alaska Paycheck & Taxes
Here are answers to the most common questions people ask about Alaska paychecks, taxes, and take-home pay.
No. Alaska has zero state income tax. You pay $0 in state income tax on your salary, hourly wages, bonuses, commissions, and overtime. This applies to all earned income. Alaska is one of nine states with no state income tax. The others are Texas, Florida, Nevada, South Dakota, Wyoming, Washington, Tennessee, and New Hampshire.
No. Alaska does not have State Disability Insurance. You pay zero SDI from your paycheck. Unlike California where workers pay 1.1% SDI on their gross pay, Alaska workers pay nothing. On a $100,000 salary, this saves you over $1,100 per year compared to California.
No. No city in Alaska charges local income tax. Anchorage, Juneau, Fairbanks, and Sitka all have zero local income tax. Every dollar you earn stays in your pocket at the local level.
No. Alaska has zero state sales tax. Some local cities may charge a local sales tax up to 7.5% on goods purchased in that city, but this does not affect your paycheck. Alaska is one of only five states with no state sales tax — along with Delaware, Montana, New Hampshire, and Oregon.
The Permanent Fund Dividend (PFD) is an annual payment Alaska pays to every resident from its oil royalty savings account. The 2025 PFD was $1,000 per person, paid each October. The 2026 amount will be determined by the Alaska Legislature.
Important: The PFD is Alaska state tax-free, but it is taxable as federal income. You must report it on your federal tax return (Form 1040). To qualify, you must live in Alaska for a full calendar year and intend to remain a resident.
Alaska minimum wage is $13.00 per hour from January 1 through June 30, 2026, increasing to $14.00 per hour from July 1, 2026. The next scheduled increase is $15.00 per hour on July 1, 2027. This was set by Alaska Ballot Measure 1, approved by voters in November 2024. Alaska minimum wage is significantly higher than the federal minimum wage of $7.25 per hour.
Yes. Alaska employees pay a small Unemployment Insurance (UI) contribution of 0.50% on the first $54,200 of wages per year. The maximum is $271 per year, or approximately $10.42 per biweekly paycheck. This is the only employee-paid state tax in Alaska and is automatically withheld from your paycheck. Our calculator includes this deduction automatically when Alaska is selected.
On a $100,000 salary, single filer, no dependents, no additional deductions, your estimated take-home pay is approximately $43,800 per year or $1,685 per biweekly paycheck after federal income tax, Social Security, Medicare, and Alaska UI tax. You pay zero state income tax, zero SDI, and zero local tax. Plus you receive the Alaska PFD of approximately $1,000 per year on top of your paycheck.
The Social Security wage base for 2026 is $176,100. You pay 6.2% Social Security tax on the first $176,100 of wages. Once your wages exceed this amount, Social Security tax stops for the rest of the year. Medicare tax of 1.45% applies to all wages with no limit.
No. Alaska has zero state income tax, which means Social Security, 401k withdrawals, IRA withdrawals, and pension income are all completely state tax-free in Alaska. You only pay federal income tax on retirement income, same as every other state.
Our calculator provides estimates based on standard 2026 tax rates. Your actual paycheck may differ because of employer-specific deductions, different W-4 withholding elections, mid-year changes in salary, employer retirement plan matching, union dues, garnishments, or other deductions not included in the calculator. Always check your pay stub for exact figures.
Yes. Click the Hourly button at the top of the calculator. Enter your hourly rate and hours per week. The calculator automatically calculates overtime at 1.5x for hours over 40 per week and shows your take-home pay per paycheck and per year.
