Alaska Paycheck Calculator

Alaska Income Tax Rate

Alaska does not levy a state individual income tax on wages. That means your paycheck’s statutory tax layers are federal income tax and FICA (Social Security and Medicare), plus any voluntary deductions. Employers start with gross pay, subtract pre-tax benefits like traditional 401(k), Section 125 health premiums, HSA/FSA, and qualified commuter benefits, then calculate federal withholding and FICA using your W-4 and pay frequency. Supplemental wages—bonuses and commissions—generally follow federal supplemental withholding methods. Because there’s no Alaska state wage tax and no city wage income tax, your effective tax rate is driven primarily by federal brackets, FICA, and your own benefits elections, which can materially increase take-home pay compared to states that tax wages.

Alaska Median Household Income

Alaska’s median household income is typically above the U.S. average, supported by energy, transportation, government, healthcare, construction, fisheries, and tourism. Pandemic-era swings affected employment, but incomes generally resumed nominal growth as labor markets tightened. Values below are directional and nominal; for purchasing-power comparisons, evaluate “real” (inflation-adjusted) dollars and weigh Alaska-specific costs: housing availability, utilities, fuel, groceries, and travel can be higher than national norms. Regional gaps are meaningful—Anchorage and Juneau often exceed statewide medians, while smaller rural communities can differ. Use these statewide benchmarks as a starting point and pair them with current local estimates when budgeting or evaluating offers.

Alaska Federal Insurance Contributions Act (FICA)

FICA applies to Alaska wages like everywhere in the U.S. Employees pay 6.2% Social Security on wages up to the federal wage base (employers match) and 1.45% Medicare on all wages (employers match). High earners owe an additional 0.9% Medicare surtax above federal thresholds; employers do not match that surtax. Section 125 health premiums usually reduce both income-tax and FICA wages, while traditional 401(k) contributions reduce income-tax wages but not FICA. Your pay stub typically lists Social Security, Medicare, federal tax, pre-tax and post-tax deductions, and net pay. With no Alaska state income tax, understanding FICA and benefits optimization is especially impactful.

Alaska Number of Cities with Local Income Taxes

Alaska does not impose municipal wage income taxes. Some local governments use sales or property taxes, but paychecks aren’t reduced by city wage taxes.

How Your Alaska Paycheck Works

Your paycheck begins with gross wages. Payroll subtracts pre-tax benefits—traditional 401(k), HSA/FSA, Section 125 health premiums, and eligible commuter benefits—to determine taxable wages. Withholding then includes federal income tax (per your W-4) and FICA (Social Security and Medicare). Because Alaska has no state or city wage income tax, your net pay is more sensitive to federal bracket placement, FICA thresholds, and your benefit elections. Post-tax deductions (Roth 401(k), garnishments, charitable gifts, union dues) come after taxes and do not reduce taxable wages. Pay frequency—weekly, biweekly, semimonthly, monthly—changes per-check cash flow but not annual tax owed.

Alaska Wage and Hour Laws: Overtime, Pay Frequency

Overtime: Alaska follows the FLSA standard—most non-exempt employees earn 1.5× their regular rate for hours worked over 40 in a workweek; exemptions apply where duties and salary thresholds are met. Some industries have additional rules on hours and records.
Pay frequency: Employers must establish a regular payday and pay on consistent intervals; biweekly and semimonthly schedules are common. Final-pay timing and itemized pay-statement requirements apply under state and federal law—review employer policy and any contract terms.

FAQs

How do I use the Alaska Paycheck Calculator?

Enter gross pay, pay schedule, W-4 details, and pre/post-tax deductions; it estimates federal withholding, FICA, and your net pay.

Does Alaska have a state income tax on wages?

No. Alaska does not tax wage income at the state or municipal level.

What taxes typically appear on an Alaska pay stub?

Federal income tax, Social Security, Medicare, and your pre-/post-tax deductions; no state or city wage income tax lines.

How do pre-tax 401(k) and HSA contributions affect my take-home?

They reduce income-tax wages, increasing net pay. Traditional 401(k) doesn’t reduce FICA; many health premiums do reduce FICA wages.

Are bonuses withheld differently in Alaska?

Yes for federal rules: employers may use percentage or aggregate methods. There’s no additional Alaska state withholding.

Why did my federal withholding change midyear?

Updated W-4, pay raises, supplemental pay, or benefit changes can shift brackets and per-check withholding.

What is Alaska’s minimum wage policy?

Alaska sets a statewide minimum wage by statute; employers must pay at least the current effective rate.