Alaska Income Tax Calculator

Estimate your Alaska income tax burden

Updated for 2023 tax year on Mar 01, 2023

Income tax calculators by state

Alaska state taxes

Alaska income taxes

Remarkably, Alaskans pay no state income tax, a rare scenario among states. This policy stems from the considerable revenue from the oil and gas industry, which has historically funded state operations and even resulted in annual dividends to residents through the Alaska Permanent Fund.

Regarding payroll tax, Alaska imposes a State Unemployment Insurance (SUI) tax on employers. This tax rate varies from 1% to 5.4%, depending on the employer’s experience rating. While it’s the employers who directly pay this tax, it can indirectly affect employees’ wages and job opportunities.

Given Alaska’s lack of a state income tax, discussions on standard deductions and personal exemptions at the state level are moot. However, Alaskans must still comply with federal tax laws, which include standard deductions and personal exemptions.

Alaska income tax calculation

Since Alaska only has state payroll tax, it will be very different from the steps we listed on our Federal income tax calculator:

1. Calculate your state payroll tax liability [Gross income × State payroll tax rate = State payroll tax liability]

State payroll tax

Alaska sales tax

Alaska doesn’t have a statewide sales tax, another departure from the standard. But this doesn’t mean Alaskans never pay sales tax. Many local jurisdictions impose their own, with rates ranging from 1% to 7.5%.

Alaska property tax

Municipalities set their rates, leading to a wide range of property tax burdens across the state, from as low as 0.1% to as high as 2.7%.

Alaska capital gains tax

Alaska’s lack of a state income tax implies that the state does not levy a separate capital gains tax. However, Alaskans must still deal with the federal capital gains tax on the sale of assets like stocks, bonds, and real estate.

Alaska gas tax

The gas tax in Alaska is notably low, standing at 14.66 cents per gallon, ranking among the lowest in the country.

Alaska tobacco tax

Despite its generally low-tax environment, Alaska imposes a considerable excise tax on tobacco products, with a rate of $2 per pack of cigarettes.

Alaska insurance tax

There is no state-level tax on insurance premiums, although some local jurisdictions may levy their taxes or fees.

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