How Alaska taxes a paycheck
It doesn't. Alaska repealed its individual income tax in 1980, when oil revenue from the Trans-Alaska Pipeline made it unnecessary, and no city or borough has one either. Alaska is also one of five states with no statewide sales tax, though about a hundred municipalities levy local sales taxes of up to 7.5%. The state funds itself from oil royalties, the Permanent Fund and federal transfers.
That leaves the two federal lines on a paycheck: income tax under the 2026 brackets after the $16,100 standard deduction, and FICA at 7.65% up to the $184,500 Social Security wage base. On $60,000 those come to about $9,610, or 16% of gross pay, and the calculator shows exactly that with nothing else taken out.
How much taxes are taken out of paychecks in Alaska?
On a $60,000 salary in 2026, a single filer in Alaska pays about $5,020 in federal income tax and $4,590 in Social Security and Medicare, and nothing to the state. Net pay is about $50,390 a year, $1,938 every two weeks. That is the highest take-home figure any state can offer on that salary, shared with the eight other no-tax states.
The Permanent Fund Dividend works the other way: most Alaska residents receive an annual payment from the state's oil fund ($1,000 in 2025, $1,702 in 2024). It is taxable federal income but it is not withheld through payroll and does not appear in this calculator.
Alaska compared with other states
Alaska has no land border with another state, so its natural comparisons are Washington, the other no-wage-tax state on the Pacific, and the states people move between. Washington taxes no salary either but takes 0.66% of wages for paid leave and 0.58% for WA Cares. Oregon, one state further south, taxes wages at up to 9.9%, so a $60,000 earner keeps about $3,980 more a year in Anchorage than in Portland before the cost of living is considered.
Alaska's higher cost of living, particularly for food, housing and energy outside Anchorage, is the usual counterweight to its absent income tax. This page states the tax figures only.
Does Alaska have state income tax?
No. Alaska has no state income tax on wages or on any other personal income, so an Alaska paycheck has only federal income tax, Social Security and Medicare withheld. Alaska funds itself largely through oil and gas royalties and production taxes, the earnings of the Permanent Fund, and federal transfers, and it is the only state with neither an income tax nor a statewide sales tax.
Proposals to reintroduce an income tax surface in Juneau whenever oil prices fall, most recently in 2017 and 2023, and none has passed. Alaska residents who work in another state for part of the year owe that state's tax on the wages earned there, and the state's lack of an income tax means there is no home-state credit to offset it.