Alaska paycheck taxes at a glance
| Income tax on wages | None |
|---|---|
| AK unemployment insurance (0.5%) | 0.5% of wages up to $54,200 |
| Minimum wage (2026) | $14.00 an hour (since July 1, 2026; $13.00 from January 1 to June 30. No tip credit is allowed) |
Example: a $95,200 salary in Alaska
The median household income in Alaska is about $95,220 (2025 data). Here's what one earner with that salary, paid every two weeks, filing single with no pre-tax deductions, would see on each paycheck in 2026:
| Gross pay | $3,661.54 |
|---|---|
| Federal income tax | −$465.92 |
| Social Security | −$227.02 |
| Medicare | −$53.09 |
| AK unemployment insurance (0.5%) | −$10.42 |
| Take-home pay | $2,905.08 |
That's $75,532 a year in take-home pay, or 20.7% of gross pay going to taxes.
Take-home pay by salary in Alaska
Single filer, paid biweekly, standard W-4, no pre-tax deductions:
| Salary | Per paycheck | Per year | State payroll | Total tax rate |
|---|---|---|---|---|
| $40,000 | $1,312.31 | $34,120 | $200 | 14.7% |
| $60,000 | $1,927.65 | $50,119 | $271 | 16.5% |
| $80,000 | $2,493.81 | $64,839 | $271 | 19% |
| $100,000 | $3,034.96 | $78,909 | $271 | 21.1% |
| $150,000 | $4,366.15 | $113,520 | $271 | 24.3% |
| $200,000 | $5,717.54 | $148,656 | $271 | 25.7% |
What changed for 2026
- The minimum wage rose from $13.00 to $14.00 an hour on July 1, 2026.
- The employee unemployment insurance rate stayed at 0.5%, but the taxable wage base rose from $51,700 to $54,200, so the most you can pay rose from $258.50 to $271.
- The 2026 Permanent Fund Dividend is $1,200, including a $200 energy relief payment, up from $1,000 in 2025. Payments began October 22, 2026.
Alaska pay rules worth knowing
- Employers must pay at least twice a month, or monthly if they choose that schedule, according to the U.S. Department of Labor's survey of state payday rules.
- If you're fired, your final pay is due within three working days. If you quit, it's due by the next regular payday that falls at least three working days after your last day.
What comes out of an Alaska paycheck
An Alaska pay stub usually has four required deductions:
- Federal income tax, based on your Form W-4.
- Social Security, 6.2% of wages up to $184,500 in 2026.
- Medicare, 1.45% of all wages, plus 0.9% on wages over $200,000.
- Alaska unemployment insurance (UI), 0.5% of wages up to $54,200.
There’s no state income tax, so the UI line is the only state deduction.
The employee unemployment insurance deduction
In most states, only employers pay unemployment insurance tax. Alaska is one of the few that also takes an employee share. For 2026 it’s 0.5% of the first $54,200 you earn, which works out to a maximum of $271 for the year. Once your year-to-date wages pass $54,200, the deduction stops, so higher earners see it disappear from their stubs partway through the year.
The calculator and the tables on this page include the UI deduction. On a $40,000 salary it comes to $200 a year, or about $7.69 per biweekly paycheck.
The Permanent Fund Dividend
Each fall, eligible Alaska residents receive the Permanent Fund Dividend (PFD), paid from the earnings of the Alaska Permanent Fund. The 2026 dividend is $1,200 per person, which includes a $200 energy relief payment. The first payments went out October 22, 2026. The 2025 dividend was $1,000.
The PFD isn’t part of your pay, but it matters for taxes. Dividends paid to adults are federally taxable income. A household with two adults receiving $2,400 in dividends adds that amount to its federal taxable income. If your W-4 withholding is tight, you could owe a little at filing time. Raising your federal withholding slightly, or setting part of the dividend aside, avoids a surprise.
The minimum wage
Alaska’s minimum wage rose to $14.00 an hour on July 1, 2026, from $13.00. Unlike most states, this year’s increase took effect midyear. Alaska doesn’t allow employers to count tips toward the minimum wage, so servers and bartenders earn the full rate before tips.
The income tax calculator estimates your full-year federal tax, including PFD income. The salary calculator converts hourly pay to annual figures for comparing offers.
Estimates only. Your employer’s payroll system and your W-4 determine your actual paycheck.
Sources
- Alaska Department of Labor: Wage and Hour
- Alaska Department of Labor: Wage and Hour FAQ (final pay)
- Alaska Department of Labor: Employment security tax rates and wage base
- Alaska Permanent Fund Dividend Division
- PFD Division: Summary of dividend applications and payments
- PFD Division: Tax information
- U.S. Department of Labor: State payday requirements
- U.S. Department of Labor: Minimum wages for tipped employees
- Census Bureau: Household Income in States and Metropolitan Areas, 2025
- taxfoundation.org
- labor.alaska.gov
- IRS Publication 15-T (federal withholding)
Frequently asked questions
Does Alaska have a state income tax?
No. Alaska doesn't tax wages, so there's no state income tax withholding. Federal income tax, Social Security and Medicare still apply.
What is the deduction for Alaska unemployment insurance on my pay stub?
Alaska requires employees, not just employers, to contribute to unemployment insurance. For 2026 the employee rate is 0.5% of wages up to $54,200, so the most anyone pays in a year is $271. It stops once your wages for the year pass $54,200.
Is the Permanent Fund Dividend taxable?
Yes, for federal purposes. The PFD Division says dividends paid to adults are taxable federal income. Alaska doesn't tax it, because the state has no income tax. Plan for the federal tax when you file, or raise your W-4 withholding slightly.
How much is the 2026 PFD?
$1,200 per eligible resident, which includes a $200 energy relief payment. The first payments went out on October 22, 2026. The 2025 dividend was $1,000.
Can my employer pay me less than minimum wage because I earn tips?
No. Alaska doesn't allow a tip credit, so tipped employees must receive the full $14.00 minimum wage from their employer before tips.
Facts verified November 6, 2026. Estimates only; your employer's payroll system and your W-4 determine your actual withholding.