Alaska Paycheck Calculator
Where is your money going?
Official Sources & References
This calculator uses data from the following authoritative sources. All tax rates, brackets, and thresholds are verified against official government publications:
- Alaska Dept. of Revenue
- IRS Tax Brackets 2025
- IRS W-4 Tax Withholding Estimator
- SSA 2025 Wage Base Limit
- US Dept. of Labor - Minimum Wage
- IRS Publication 15 (Employer's Tax Guide)
This calculator is for informational purposes only and does not constitute tax advice. Consult a qualified tax professional or the IRS for guidance specific to your situation.
Alaska State Income Tax Rates (2025)
Alaska is the only state with no income tax AND no sales tax at the state level. Alaska actually pays residents money — the Alaska Permanent Fund Dividend (PFD) distributes oil revenue to every eligible resident annually (around $1,312 in 2023).
Alaska's minimum wage is $11.73/hr (2024). Alaska's minimum wage automatically adjusts each January based on the Consumer Price Index.
How to Calculate Your Alaska Paycheck
Your Alaska take-home pay is calculated by subtracting the following deductions from your gross pay:
- Federal Income Tax — based on 2025 IRS brackets and your filing status
- Social Security — 6.2% of wages up to $176,100 (2025 wage base)
- Medicare — 1.45% of all wages (plus 0.9% on earnings over $200,000)
- Alaska State Income Tax — 0% — Alaska has no state income tax
- Pre-tax deductions — 401(k), HSA, health insurance (reduce taxable income)
Alaska's tax advantages are unmatched in the US. Not only do workers pay no state income tax, but they receive money from the state each year through the Permanent Fund Dividend. For a family of four, this can mean $5,000+ in annual income on top of the tax savings. The tradeoff is Alaska's high cost of living, particularly for food and energy in remote areas.
This calculator also serves as a Alaska payroll calculator, Alaska salary calculator, Alaska income calculator, and Alaska take home pay calculator. Whether you search for "AK paycheck calculator" or "alaska wage calculator," this tool gives you accurate 2025 results.
Alaska Paycheck Quick Facts (2025)
| State Income Tax | None — 0% |
| Minimum Wage | $11.73 |
| Median Household Income | $86,370 |
| Cost of Living Index | 127.0 (US avg = 100) |
| Local Taxes | No local income taxes |
| Pay Frequency Law | Semi-monthly required |
What Makes Alaska Paychecks Unique
Alaska uses a no state income tax. With a median household income of $86,370 and a cost of living index of 127.0 (where 100 is the national average), your paycheck's purchasing power is below the national average due to higher costs.
- Alaska is one of nine states with no state income tax, meaning you only pay federal taxes and FICA.
- Alaska residents receive an annual Permanent Fund Dividend (PFD) — in 2024 it was $1,702 per person.
- Alaska has no state sales tax either, though some municipalities levy local sales taxes up to 7.5%.