Alaska Income Tax Calculator

Estimate your Alaska income tax burden

Updated for 2024 tax year on Jul 23, 2024

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How to calculate your Alaska income taxes

Understanding your 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.

Calculate your income tax in Alaska

1. Work out your total federal income tax
   1. Gross income adjusted
      Gross income − Pre-tax deductions = Gross income adjusted
   2. Federal taxable income
      Gross income adjusted − Federal standard/itemized deductions = Federal taxable income
   3. Federal income tax liability
      Federal taxable income × Federal income tax rate = Federal income tax liability
   4. Federal payroll tax liability
      Gross income × Federal payroll tax rate = Federal payroll tax liability
2. Calculate your total Alaska state income tax
   1. Alaska state taxable income
      Gross income adjusted − Alaska state itemized deductions = Alaska state taxable income
   2. Alaska state payroll tax liability
      Gross income × Alaska state payroll tax rate = Alaska state payroll tax liability
3. Add up all the taxes
   Federal income tax liability + Federal payroll tax liability + Alaska state payroll tax liability = Your total income tax liability

State payroll tax

Tax year	Tax name	Percent of taxable wage	Up to taxable wage
2024	State Unemployment Insurance (SUI)	0.50%	$49,700
2023	State Unemployment Insurance (SUI)	0.51%	$47,100
2022	State Unemployment Insurance (SUI)	0.56%	$45,200
2021	State Unemployment Insurance (SUI)	0.50%	$43,600
2020	State Unemployment Insurance (SUI)	0.50%	$41,500

FAQs

How to calculate income tax in Alaska?

Follow the 3 steps below to calculate your total income tax in Alaska:

1. Work out your total federal income tax
2. Calculate your total Alaska state payroll tax
3. Sum up all the taxes

How much income tax do I pay in Alaska?

Alaska does not have a state income tax but there is a state unemployment insurance payroll tax of 0.5% up to $49,700.