Alaska Income Tax
Alaska is one of nine US states with no state income tax. It is the only state that has neither a state income tax nor a state sales tax, making it one of the most tax-friendly states in the country.
Tax Type
No Income Tax
Income Tax Rate
0%
Brackets
None
Calculate your full tax picture
Alaska is only part of the equation — federal taxes apply too.
State Tax Ranking
At $75,000 income (single filer), Alaska ranks #1 out of 51 states — where #1 is the lowest tax burden.
Best states to move to from Alaska →Tax at Different Income Levels
| Income | State Tax | Effective Rate | Take-Home |
|---|---|---|---|
| $50,000 | $0 | 0.00% | $46,129 |
| $75,000 | $0 | 0.00% | $67,051 |
| $100,000 | $0 | 0.00% | $86,551 |
| $150,000 | $0 | 0.00% | $124,933 |
| $200,000 | $0 | 0.00% | $162,933 |
Single filer, standard deduction, 2025 tax year. Take-home is after federal + state income tax (excludes FICA).
What You Should Know
Alaska funds state government primarily through oil revenues and has no state sales tax, though some local municipalities levy their own sales taxes (typically 1%–7.5%). Property taxes are collected at the local level. Alaska also distributes an annual Permanent Fund Dividend (PFD) to residents from its oil wealth fund. Residents still owe federal income tax and FICA taxes on their earnings. The PFD payment is considered taxable income for federal purposes.
Tax Planning Tip
With no state income tax, your take-home pay in Alaska is higher than most states. However, the cost of living — particularly housing, food, and energy — is significantly above the national average, which can offset the tax savings.
Property Tax & Cost of Living
Property tax rate is the state average effective rate. Actual rates vary by county. COL index from BEA Regional Price Parities.
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Frequently asked questions
What is Alaska's income tax rate in 2025?
Alaska has no state income tax. Residents pay only federal income tax on their earnings.
Does Alaska tax Social Security benefits?
Alaska does not tax Social Security benefits at the state level, as the state has no income tax.