Alaska Paycheck Calculator
Free take-home pay estimator for Alaska employees · 2026 tax rates · Updated January 2026
How Alaska paycheck taxes work
Alaska has no state income tax — residents keep their full paycheck above federal taxes and FICA.
- Alaska is one of only 9 states with no state income tax.
- Alaska residents receive an annual Permanent Fund Dividend from oil revenue — typically $1,000–$2,000 per year.
- There is no state sales tax in Alaska, though some cities levy local sales taxes.
Federal income tax withholding (2026)
Federal income tax withholding is calculated using the annualization method from IRS Publication 15-T. Your per-period gross pay is annualized, reduced by the standard deduction ($15,000 single / $30,000 married / $22,500 head of household in 2026), and then taxed at the applicable bracket rates. The resulting annual tax is divided by your number of pay periods.
2026 federal tax brackets
| Taxable Income (Single) | Rate |
|---|---|
| $0 – $11,925 | 10% |
| $11,926 – $48,475 | 12% |
| $48,476 – $103,350 | 22% |
| $103,351 – $197,300 | 24% |
| $197,301 – $250,525 | 32% |
| $250,526 – $626,350 | 35% |
| Over $626,350 | 37% |
FICA: Social Security & Medicare
FICA taxes are the same in every state. Social Security is withheld at 6.2% on wages up to $176,100 (2026 wage base). Once your wages reach that cap in a calendar year, Social Security withholding stops. Medicare is withheld at 1.45% with no wage cap. An additional 0.9% applies to wages above $200,000 (single) or $250,000 (married).
Alaska vs. high-tax states
A worker earning $75,000 per year in Alaska saves roughly $3,750–$7,500 annually compared to living in a state with a 5%–10% income tax. For a $100,000 earner, that's $5,000–$10,000 per year — a meaningful difference in take-home pay and long-term wealth accumulation.
Pre-tax deductions and your paycheck
Traditional 401(k) contributions and employer-sponsored health insurance premiums (Section 125/cafeteria plan) reduce your federal and state taxable income, lowering your income tax withholding. However, 401(k) contributions do not reduce FICA (Social Security and Medicare) wages. Health insurance premiums under a Section 125 plan do reduce FICA wages. Use the "Show deductions" section above to model your specific situation.
Frequently asked questions
- Alaska has no state income tax, so residents pay $0 in state income tax on their wages. You still owe federal income tax and FICA (Social Security + Medicare), which together typically take 20–30% of each paycheck.
- Social Security is a federal tax, not a state tax — the rate is 6.2% for all employees in every state, including Alaska. It applies to wages up to $176,100 in 2026. Once your wages exceed that cap in a calendar year, Social Security withholding stops.
- Start with your gross pay per paycheck. Subtract: (1) federal income tax based on your filing status and 2026 brackets; (2) Social Security at 6.2% up to the wage base; (3) Medicare at 1.45%; (4) no state income tax applies. Any pre-tax deductions like 401(k) or health insurance reduce your taxable income further. The calculator above does this math instantly.
- Alaska has no state income tax at all, so Social Security benefits are not taxed at the state level. Federally, up to 85% of Social Security benefits may be taxable depending on your combined income.
- Medicare is a federal payroll tax with no state variation. The standard rate is 1.45% for employees in all states including Alaska. An additional 0.9% applies to wages over $200,000 for single filers ($250,000 for married filing jointly) — this is called the Additional Medicare Tax.
Last updated: January 2026 · Data source: IRS Publication 15-T (2026), Alaska Department of Revenue · This tool is for estimation only.