Alaska Take-Home Pay Calculator
Alaska has no state income tax and no state sales tax, so your paycheck only loses federal income tax and FICA.
Why the Alaska paycheck math is simpler
(no state tax line — Alaska has neither an income tax nor a state sales tax)
Alaska is genuinely unique among all 50 states: it has no state income tax and no state-level sales tax, a combination no other state shares. A paycheck skips the state-tax line entirely, and everyday purchases avoid a state sales tax too — though some municipalities levy their own local sales tax.
Taxable after $4,000 pre-tax and $15,000 federal standard deduction: $61,000. Federal tax ≈ $8,334 · Social Security $4,960 · Medicare $1,160.
Annual take-home ≈ $61,546 → about $2,367 per biweekly paycheck (76.9% of gross) — no state tax line to subtract.
The Permanent Fund Dividend — a unique Alaska feature
Every eligible Alaska resident who lived in the state the entire prior calendar year receives an annual Permanent Fund Dividend (PFD), paid from investment returns on Alaska's Permanent Fund — a sovereign wealth fund built from oil revenue, now holding over $70 billion. The 2025 dividend was $1,000 per eligible resident, typically paid each October. The PFD is taxable as ordinary income on your federal return, but Alaska itself doesn't tax it — it's not part of this paycheck calculator since it's a separate annual payment, not wage income.
How Alaska funds itself instead
Alaska's government has historically relied heavily on oil and gas revenue — production taxes and royalties from the state's substantial petroleum resources — rather than broad-based taxes on residents. This is a fundamentally different funding model from every other no-income-tax state, which typically lean on sales tax or tourism revenue instead.
Common mistakes when estimating an Alaska paycheck
- Including the Permanent Fund Dividend in a paycheck estimate. It's a separate annual payment, not wage income, and isn't part of a take-home-pay calculation.
- Assuming no sales tax exists anywhere in Alaska. Some municipalities levy their own local sales tax even though the state itself doesn't.
- Forgetting the PFD is federally taxable. It's exempt from Alaska tax but still counts as federal taxable income.
Frequently asked questions
Does Alaska have a state income tax?
No — and it's the only state with neither a state income tax nor a state sales tax.
What is the Alaska Permanent Fund Dividend?
An annual payment to eligible residents from the state's oil-revenue-funded investment fund — $1,000 for 2025, taxable federally but not by Alaska.
How does Alaska fund government without income or sales tax?
Primarily through oil and gas production taxes and royalties.
Do any Alaska cities have local taxes?
Some municipalities levy their own local sales tax, varying by city and borough.
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Note: Simplified estimate using 2025 federal figures and the standard deduction; excludes the Permanent Fund Dividend, credits, and benefit specifics. Not tax advice. Figures: 2025 federal tax year; Alaska has no state income tax. Last reviewed: September 2026.