Alaska State Tax Calculator (2026)
Alaska levies no individual income tax, so there is no state return and nothing withheld for the state. Here is what that does and does not change.
Reviewed by Teja K, CPA · last reviewed . General information, not tax advice for your situation. A calculator is an estimate, not a filed return. How we research and review this.
Alaska
No individual income tax
There is no Alaska income tax return to file and nothing withheld for the state. Your federal tax is unchanged — estimate that with the federal income tax calculator.
Alaska has no individual income tax
There is no Alaska income tax return to file and nothing withheld for the state from your paycheck. For most people working in Alaska that is the entire answer to the question.
Alaska has neither an individual income tax nor a statewide sales tax, funding itself principally from oil and gas revenue. Some municipalities do levy their own local sales tax.
- Alaska has no individual income tax and no individual state income tax return.
- Alaska is the only state with no individual income tax and no statewide sales tax, though local sales taxes exist in some boroughs and cities.
- The Permanent Fund Dividend paid to eligible residents is not taxed by Alaska, but it is generally taxable on your FEDERAL return. It is the one line on an Alaska resident's return that catches people out.
None of this reduces your federal tax. Federal brackets, the standard deduction and every federal credit apply exactly as they would anywhere else.
Why Alaska is worth more than the salary saving if you have income in India
The relocation arithmetic people run is about salary. The part almost nobody counts is what happens to the Indian side of their finances.
States that tax residents on worldwide income reach your Indian income too, and most give no credit for the Indian tax already paid on it. In Alaska that layer is zero, because there is no individual income tax for it to sit in. NRO interest, rent from an Indian flat, a gain on Indian shares — none of it meets a state tax here.
The federal position is untouched. Your FBAR, Form 8938 and Form 8621 obligations are federal and do not change with the state you live in.
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Frequently Asked Questions
Does Alaska have a state income tax?
No. Alaska levies no individual income tax on wages, so there is no state return to file and no state withholding. Alaska has neither an individual income tax nor a statewide sales tax, funding itself principally from oil and gas revenue. Some municipalities do levy their own local sales tax.
Is Alaska tax on top of federal tax?
Federal tax applies regardless of which state you live in, and is calculated separately. Living in Alaska removes the state layer, not the federal one — and it also removes the state and local tax deduction from your federal itemised deductions, which for some filers makes the standard deduction the better federal choice.
I moved to or from Alaska during the year. Does this work?
Not directly. A part-year move usually means a part-year return in each state with income apportioned between them, and the state you left applies its own residency test rather than accepting a new address. Use this to size the rates, then treat the apportionment as a separate question.
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