Alaska Paycheck Calculator

Alaska is one of the most tax-friendly states in the country — it has no state income tax and no statewide sales tax, making it exceptional among U.S. states. Anchorage, Fairbanks, Juneau, and all Alaska cities and boroughs have no local income taxes, though some municipalities have local sales taxes. For paycheck purposes, the only deductions beyond employer benefits are federal income tax and FICA.

Alaska also offers a unique benefit: the Alaska Permanent Fund Dividend (PFD), an annual payment to eligible Alaska residents funded by the state's oil royalties. In recent years, PFDs have ranged from $1,000 to $3,000 per eligible resident. This is a payment to you, not a deduction from your paycheck, but it is taxable as federal ordinary income.

The absence of both income and sales taxes means Alaska workers often have higher take-home purchasing power relative to equivalent gross salaries in other states, despite Alaska's higher cost of living in many categories (particularly goods that must be shipped). Alaska is one of only two states (with Wyoming) to have neither income nor sales tax at the state level.