What Alaska does and doesn't tax
Alaska does not tax wages, salaries, tips, interest, dividends, pensions or Social Security, and it has no state income tax withholding. Alaska repealed its individual income tax in 1980.
Federal income tax still applies in full — the 2026 federal brackets run from 10% to 37% — and Social Security (6.2%) and Medicare (1.45%) come out of every paycheck. Alaska also withholds Unemployment Insurance (0.5% of the first $54,200 of wages, at most $271 a year). If you earn wages in a state that taxes income, for example by commuting across a border, that state can tax the wages earned there.
Income tax you avoid at common incomes
What a single filer would owe Oregon, the nearby state with the highest tax at $75,000, compared with $0 in Alaska:
| Income | Alaska | Oregon |
|---|---|---|
| $30,000 | $0 | $1,668 |
| $50,000 | $0 | $3,208 |
| $75,000 | $0 | $5,059 |
| $100,000 | $0 | $7,152 |
| $150,000 | $0 | $12,806 |
| $250,000 | $0 | $22,706 |
Alaska compared with nearby states
At $75,000 (single), Alaska ranks 43 (tied with 8 others) of 51 for state income tax, where 1 is the highest; 9 jurisdictions charge nothing at this income.
| State | Tax on $75,000 | Effective rate | Top rate |
|---|---|---|---|
| Alaska | $0 | 0% | none |
| Washington | $0 | 0% | none |
| Oregon | $5,059 | 6.74% | 9.9% |
| Hawaii | $3,896 | 5.2% | 11% |
More about taxes in Alaska
- Residents receive the Permanent Fund Dividend: $1,000 plus a $200 energy relief payment in 2026. The dividend is taxable on your federal return.
Frequently asked questions
Does Alaska have a state income tax?
No. Alaska repealed its individual income tax in 1980. Wages, salaries, interest, dividends and retirement income are not taxed by the state.
How much does living in Alaska save on income tax?
On $75,000 of income, a single filer pays $0 to Alaska; 9 of 51 jurisdictions charge nothing at that income. Nearby, Oregon would charge about $5,059.
Do I still pay federal income tax in Alaska?
Yes. Federal income tax, Social Security and Medicare apply in every state. Alaska residents who earn wages in a state that does tax income can also owe that state tax on those wages.
What other taxes do Alaska residents pay?
Residents receive the Permanent Fund Dividend: $1,000 plus a $200 energy relief payment in 2026. The dividend is taxable on your federal return.
Estimates only — not tax advice. Alaska figures: Tax Foundation, State Individual Income Tax Rates and Brackets, 2026 (as of Jan. 1, 2026). Checked October 2026. Your return may include income, deductions and credits this estimate leaves out.