Alaska Paycheck Calculator
Free Alaska paycheck calculator. Estimate your take-home pay with current Alaska state tax rates and federal withholdings. Calculate federal income tax, Social Security, Medicare, and Alaska state withholdings instantly.
What you should know about Alaska taxes
Alaska has no state income tax at all — one of only seven states with that distinction. Workers here keep more of their gross pay, but still owe federal taxes and FICA.
No State Income Tax
Alaska does not levy a state income tax on wages. Your paycheck deductions are limited to federal income tax, Social Security (6.2%), and Medicare (1.45%).
Why Alaska Paychecks Are Bigger
Alaska is one of seven states with zero state income tax. No brackets, no withholding, no state return to file. That means your paycheck only has federal income tax, Social Security (6.2%), and Medicare (1.45%) taken out. For someone earning $60,000 per year, skipping state tax can mean an extra $2,000–$4,000 in take-home pay compared to a high-tax state like California. On top of that, Alaska residents may qualify for the Permanent Fund Dividend (PFD) — an annual payment from oil revenues that has historically ranged from $1,000 to $3,200 per person.
Costs That Offset the Tax Advantage
Before you pack your bags for Anchorage, know that Alaska's cost of living is roughly 25–30% above the national average. Groceries in remote areas can be double the Lower 48 prices. Housing in Anchorage is reasonable, but utilities run high due to heating costs. Many employers in Alaska offer additional pay differentials or housing allowances to compensate, which makes the paycheck math more complex. When you use our calculator, enter your actual gross pay including any differentials to get an accurate take-home estimate.