Alaska Paycheck Calculator
Alaska Paycheck Calculator estimates net pay after FICA, deductions, benefits, and withholdings, reflecting Alaska’s no-income-tax structure accurately for every payday.
Alaska Income Tax Rate and Paycheck Calculator
Alaska stands out among U.S. states because it does not impose a state income tax on wages or salary. That means your paycheck deductions are limited to federal income tax, Social Security, and Medicare (FICA), plus any voluntary or pre-tax deductions you elect. Employers calculate Alaska paycheck withholding by starting with your gross pay, subtracting pre-tax benefits such as traditional 401(k), Section 125 health premiums, HSA/FSA, and qualified commuter benefits, before determining federal withholding and FICA based on your W-4 and pay frequency.
Since there’s no Alaska state income tax and no local city wage tax, residents often enjoy higher take-home pay than in states that tax wages. However, federal brackets, FICA limits, and cost-of-living factors still play a major role in your real disposable income.
Alaska Income Tax Rate History
Alaska repealed its individual income tax in 1980 and has maintained a 0.00% top rate since. The table below summarizes the last ten years of Alaska’s individual income tax rate history, showing the continued absence of a state-level tax.
| Year | Top Rate |
|---|---|
| 2016 | 0.00% |
| 2017 | 0.00% |
| 2018 | 0.00% |
| 2019 | 0.00% |
| 2020 | 0.00% |
| 2021 | 0.00% |
| 2022 | 0.00% |
| 2023 | 0.00% |
| 2024 | 0.00% |
| 2025 | 0.00% |
Alaska Median Household Income
Alaska’s median household income consistently exceeds the national average, supported by strong sectors such as energy, transportation, healthcare, and public administration. The data below show nominal growth trends over the last decade. Keep in mind that Alaska’s cost of living—including housing, utilities, and fuel—can offset income advantages, particularly in remote regions.
| Year | Income |
|---|---|
| 2016 | $76,400 |
| 2017 | $77,800 |
| 2018 | $78,500 |
| 2019 | $80,300 |
| 2020 | $81,600 |
| 2021 | $83,900 |
| 2022 | $86,200 |
| 2023 | $88,100 |
| 2024 | $89,700 |
| 2025 | $90,800 (prelim.) |
Federal Payroll Taxes in Alaska (FICA)
Even without a state income tax, all employees in Alaska pay FICA taxes:
- 6.2% Social Security tax on wages up to the federal wage base (employers match).
- 1.45% Medicare tax
- Additional 0.9% Medicare surtax for high earners (not employer-matched).
Pre-tax deductions under Section 125 (e.g., health premiums, HSA/FSA) generally reduce both income and FICA wages, while traditional 401(k) contributions reduce income-tax wages only. With no Alaska state withholding, optimizing your benefits can make a notable difference in take-home pay.
Local Wage Income Taxes in Alaska
Alaska has no local or municipal wage income taxes. Some boroughs levy property or sales taxes, but none deduct from payroll. This statewide consistency simplifies payroll and relocation planning.
| Locality | Resident Rate | Nonresident Rate |
|---|---|---|
| All Alaska Cities/Boroughs | None | None |
How Your Alaska Paycheck Works
Your Alaska paycheck calculation starts with gross earnings. Payroll systems subtract pre-tax deductions (401(k), HSA/FSA, insurance premiums) to determine taxable wages, then apply federal income tax and FICA. Since there’s no state tax, changes in federal withholding or benefit elections directly affect your take-home pay. Post-tax items—like Roth 401(k), union dues, or garnishments—come after taxes. Pay frequency (weekly, biweekly, monthly) changes cash flow timing but not annual tax totals.
Alaska Wage and Hour Laws: Overtime and Pay Frequency
Overtime: Alaska follows FLSA rules—most non-exempt workers earn 1.5× their regular rate after 40 hours in a week. Pay Frequency: Employers must set a consistent payday and cannot delay earned wages beyond the next regular pay cycle. Most use biweekly or semimonthly schedules. Final pay must comply with Alaska’s wage payment laws and include all earned compensation.
Cost of Living and Take-Home Pay in Alaska
While Alaska’s lack of a state income tax boosts net pay, its cost of living—particularly for housing, transportation, and energy—is among the highest in the nation. When comparing job offers, consider total compensation, not just gross pay. Your take-home pay may stretch differently depending on location (Anchorage vs. rural areas) and lifestyle costs.
FAQs
How do I use the Alaska Paycheck Calculator?
Enter your gross pay, pay schedule, W-4 details, and pre-/post-tax deductions to estimate federal withholding, FICA, and net pay.
Does Alaska tax wages or salaries?
No. Alaska has no state or municipal wage income tax, allowing residents to keep more of their earnings.
What deductions appear on an Alaska pay stub?
Federal income tax, Social Security, Medicare, and your elected pre- or post-tax deductions. There are no state or local wage tax lines.
How do pre-tax benefits affect my paycheck?
They reduce taxable wages for federal income tax and sometimes FICA, effectively increasing your take-home pay.
Are bonuses taxed differently in Alaska?
Only at the federal level—employers may use percentage or aggregate methods. Alaska adds no extra tax.
Why did my federal withholding change mid-year?
Updated W-4 elections, raises, or changes in deductions can alter withholding amounts throughout the year.
What is Alaska’s minimum wage?
Alaska mandates a statewide minimum wage, adjusted annually for inflation and above the federal minimum. Employers must comply with the current rate.