Calculate your taxes in Alaska - The Last Frontier with no state income tax! Alaska residents enjoy significant tax advantages with federal-only income tax obligations. Calculate your take-home pay and compare Alaska's tax benefits.
Alaska stands out as one of the most tax-friendly states in the United States, offering significant advantages to residents and businesses alike.
Alaska has never imposed a state income tax on individuals, allowing residents to keep more of their earnings. This means you only pay federal income taxes on your earnings.
Alaska's unique Permanent Fund Dividend provides annual payments to eligible residents, creating a reverse income tax situation.
Alaska has no statewide sales tax, though some municipalities may impose local sales taxes.
Alaska's property tax burden is moderate compared to many states, with various exemptions available.
Alaska residents pay the same federal income tax rates as all US taxpayers:
Standard deduction amounts for 2025 tax year:
Federal tax credits available to Alaska residents:
See how much Alaska residents save compared to other states (based on $75,000 income):
Alaska's oil wealth benefits residents through:
Unique aspects for rural Alaska residents:
Property tax benefits for residents:
Business-friendly tax environment:
This calculator helps Alaska residents understand their federal tax obligations and compare their tax advantages:
While Alaska has no state income tax, remember that the Permanent Fund Dividend is taxable income for federal purposes. Include PFD amounts in your federal tax return to ensure accurate calculations and compliance.
No, Alaska has never imposed a state income tax on individuals. Alaska residents only pay federal income taxes, making it one of the most tax-friendly states in the US. This means more of your income stays in your pocket compared to residents of states with income taxes.
Yes, the Alaska Permanent Fund Dividend (PFD) is taxable income for federal tax purposes. You must report the PFD amount on your federal tax return. However, there is no Alaska state tax on the PFD since Alaska has no state income tax.
Alaska has no statewide sales tax. However, some local municipalities and boroughs may impose local sales taxes. The rates and applicability vary by location, but most areas have very low or no sales tax, contributing to Alaska's overall tax-friendly environment.
Alaska is unique among no-income-tax states because it also provides the Permanent Fund Dividend to residents. While states like Texas, Florida, and Nevada also have no state income tax, Alaska's PFD effectively creates a "negative income tax" situation, making it potentially the most tax-advantageous state for residents.
To be considered an Alaska resident for tax purposes, you generally need to be physically present in Alaska with the intent to remain indefinitely. For PFD eligibility, you must be an Alaska resident for the entire calendar year and meet additional requirements. Consult Alaska Department of Revenue guidelines for specific residency criteria.