Income Tax for Alaska (2026)

How This Calculator Works in Alaska

This calculator confirms that Alaska has no state income tax and helps you compare your overall tax situation with neighboring states. It can help you understand the tax savings of living in a no-income-tax state.

Alaska Overview

Alaska imposes no state income tax on individuals and has no statewide sales tax, making it unique among U.S. states. The state funds its government primarily through petroleum extraction taxes and royalties, plus earnings from the Alaska Permanent Fund. Residents also receive an annual Permanent Fund Dividend, which has historically ranged from $1,000 to $3,200 per person.

How Alaska Compares

Alaska's top income tax rate of 0% compares to Washington at 0% and Hawaii at 11%. The absence of income tax makes it one of the most favorable states for high earners.

Alaska's income tax rate of 0% compares to a national average of approximately 5.04%. This is below the national average.

Tips for Alaska Residents

• 1Alaska has no state income tax and is the only state that also has no statewide sales tax, making it one of the lightest overall tax burdens in the country.
• 2Alaska residents receive an annual Permanent Fund Dividend (PFD) from the state's oil wealth savings account — this payment is taxable on your federal return.
• 3Local boroughs and cities in Alaska can levy their own sales and property taxes, so your tax burden varies significantly depending on where you live.
• 4The state funds most of its operations through oil production taxes and royalties from Prudhoe Bay and other North Slope fields.
• 5Alaska's property taxes average about 1.19% of home value, but some remote areas have no local government and therefore no property tax at all.

Frequently Asked Questions