Alaska has no state income tax. Use this calculator to estimate your federal income tax and FICA contributions for 2026.
Alaska has no state income tax and no state sales tax, making it one of the most tax-friendly states in the country. Residents may also receive an annual Permanent Fund Dividend (PFD) from oil revenue.
While Alaska has no state income or sales tax, local municipalities may impose their own sales taxes ranging from 1% to 7.5%.
Because Alaska has no state income tax, residents only pay federal income tax and FICA payroll taxes. This can result in significant savings compared to states with income tax rates of 5% or higher. The calculator above shows your total tax burden as a Alaska resident.
Sales Tax: None (0%)
Even without a state income tax, Alaska residents still pay federal income tax. Here are the 2026 brackets for single filers:
| Rate | Single Filer Income Range |
|---|---|
| 10% | $0 – $11,925 |
| 12% | $11,925 – $48,475 |
| 22% | $48,475 – $103,350 |
| 24% | $103,350 – $197,300 |
| 32% | $197,300 – $250,525 |
| 35% | $250,525 – $626,350 |
| 37% | Above $626,350 |
Standard deduction: $15,000 (single), $30,000 (married filing jointly).
Source: IRS Revenue Procedure for tax year 2025.
| Tax | Rate | Wage Base |
|---|---|---|
| Social Security | 6.2% | First $168,600 |
| Medicare | 1.45% | All wages |
| Additional Medicare | 0.9% | Wages above $200,000 |
The minimum wage in Alaska for 2026 is $11.73/hour. Full-time annual equivalent: approximately $24,398/year.
The median household income is approximately $86,000. With no state income tax, Alaska residents keep more of their earnings compared to residents of income-tax states at the same salary level.
| Item | Cost | Frequency |
|---|---|---|
| Articles of Organization Filing | $250 | One-time |
| Biennial report | $100 | Yearly |
| Registered Agent | $0 – $150/yr | Yearly |
Source: Alaska Secretary of State.
Northwest Registered Agent handles all the paperwork for $39 + state fee. Includes free registered agent service for the first year.
Start My Alaska LLCNo. Alaska has no state income tax and no state sales tax, making it one of the most tax-friendly states in the country. Residents may also receive an annual Permanent Fund Dividend (PFD) from oil revenue.
Alaska residents pay federal income tax, FICA taxes (Social Security and Medicare), and no state sales tax. Property taxes also apply.
The minimum wage in Alaska for 2026 is $11.73 per hour.
Filing an LLC in Alaska costs $250 for the Articles of Organization. Biennial report: $100.
With no state income tax, Alaska is popular among retirees looking to minimize their tax burden. Combined with no sales tax, it offers a favorable overall tax environment.