Alaska’s inhabitants are fortunate in terms of taxation, as they enjoy the privilege of residing in the sole state in the nation that does not impose state income taxes. Additionally, while there is no statewide sales tax, some local municipalities may levy small sales taxes.
This advantageous situation is primarily due to Alaska’s reliance on petroleum revenue to fund its operations. Nevertheless, it is important to note that Alaskans are still subject to federal taxes, which are deducted from their paychecks based on factors such as supplementary income, marital status, and the presence of dependents.
For accurate paycheck estimates in Alaska, you can use a paystub generator free tool to calculate your earnings and deductions quickly.
Like residents of other states, Alaskans have federal income tax and FICA taxes taken out of their paychecks. These amounts are then sent over to the IRS to settle yearly income taxes.
FICA taxes include Social Security and Medicare contributions. As of 2026:
However, since these taxes are withholding taxes, your end-of-year total of paychecks would be lower than your gross yearly salary, accounting for the federal and FICA deductions throughout the year.
If you earn $77,000 per year in Alaska, your net pay (the amount you take home after federal and payroll taxes) will be approximately $61,148 for the 2026 tax year. This reflects total tax deductions of about 20.6% (around $15,852) taken from your gross pay. Those deductions include approximately $9,708 (12.6%) for federal income tax, $0 (0.0%) for state income tax, about $4,774 (6.2%) for Social Security tax, and roughly $1,117 (1.45%) for Medicare tax.
Important Note: The StubCreator provides a paycheck calculator designed to provide essential guidance. This should not be relied upon to calculate exact taxes, payroll, or other financial data. You should seek a professional accountant regarding any particular requirement.
For 2026, the Alaska Unemployment Insurance (UI) taxable wage base — the maximum portion of an employee’s wages subject to UI tax is $54,200. Which means employers (and, by some accounts, employees) only pay UI taxes on the first $54,200 of every worker’s yearly wages. 0.50% is the employee UI tax rate applicable to standard employees.
| Year | Alaska Taxable Base Wage |
| 2026 | $54,200 (current) |
| 2025 | $51,700 |
| 2024 | $49,700 |
| 2023 | $47,100 |
| 2022 | $45,200 |
| 2021 | $43,600 |
Alaska’s 2026 SUTA rate for new employers is 1.00%, with experienced employer rates ranging up to 5.40%.
| Year | SUTA Rate |
| 2026 | 1.00%–5.40% |
| 2025 | 1.00%–5.40% |
| 2024 | 1.00%–5.40% |
| 2023 | 1.00%–5.40% |
| 2022 | 0.56% |
| 2021 | 0.56% |
For 2026, Alaska employers pay an effective FUTA rate of 0.60% on the first $7,000 of each employee’s wages after the standard state tax credit.
| Year | Alaska FUTA Rate |
| 2026 | 0.60%* |
| 2025 | 0.60%* |
| 2024 | 0.60%* |
| 2023 | 0.60%* |
| 2022 | 0.60%* |
| 2021 | 0.60%* |
For 2026, the FICA tax rates for both employees and employers are as follows:
| Year | Alaska FICA Rates |
| 2026 | 7.65% |
| 2025 | 7.65% |
| 2024 | 7.65% |
| 2023 | 7.65% |
| 2022 | 7.65% |
| 2021 | 7.65% |
Municipalities in Alaska are able to impose use and sales taxes. Companies that operate in these regions need to be aware of the deadlines and requirements for local taxes.
Alaska does not require state income tax withholding on earnings.
Below are the details of Alaska:
No, Alaska does not impose a state income tax on individuals. This means that employees in Alaska do not have state income tax withheld from their paychecks.
While Alaska does not have a state income tax, common deductions in a paycheck calculator include federal income tax, Social Security, Medicare, and any other pre-tax deductions like health insurance or retirement contributions.
Alaska does not have local income taxes. However, residents should be aware of potential local taxes such as property taxes, which can vary by borough or municipality but do not directly impact your paycheck.
Yes, a reliable paycheck calculator allows you to input additional income sources like bonuses or overtime pay. While Alaska's lack of state income tax simplifies these calculations, it's still important to consider federal taxes and other deductions.