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
Quick Alaska tax facts
- State income tax: one of seven states with no state income tax
- State payroll tax: 0.56% up to $45,200 taxable wage
- State sales tax: 0% to 7.5%
- Property tax: 0.1% to 2.7%
- Gas tax: 14.66 cents per gallon
- Tobacco tax: $2 per pack of cigarettes
- Insurance premium tax: none
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:
- Calculate your state payroll tax liability [Gross income × State payroll tax rate = State payroll tax liability]
State payroll tax
|Tax year||Tax name||Percent of taxable wage||Up to taxable wage|
|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|
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.
How do I calculate my Alaska income tax?
Calculate your Alaska income tax in just one step.
- Gross income × State payroll tax rate = State payroll tax liability
How much is $73000 a year after taxes in Alaska?
A single filer will have a total income tax of $14,665.62. His after-tax income will be $58,334.38