Alaska state income tax 2027

Why Alaska has no wage income tax

The Alaska Department of Revenue Tax Division keeps a page for personal income tax that says only this: the State of Alaska currently does not have an individual income tax, and no employee withholding for state income tax is required. Questions about unemployment insurance tax or workers' compensation are referred to the Department of Labor and Workforce Development. There is no state return for wages, interest, dividends, pensions or capital gains, and the Tax Division's list of 25 tax types has no individual income tax program on it; the only income tax it administers is the corporate income tax. No legislation enacted as of November 11, 2026 changes that for 2027.

The sales tax page says the same about the other big state tax: the State of Alaska currently does not have a sales and use tax, but some local jurisdictions impose local sales taxes. The Department of Commerce, Community and Economic Development publishes Alaska Taxable, an overview of each community, whether it collects taxes and, if it does, its rates. So a paycheck in Anchorage and one in Juneau face the same state tax (none) but different local sales taxes.

What Alaska collects instead

The Tax Division's tax types page lists what the state does levy: corporate income tax, oil and gas production tax and oil and gas property tax, mining license tax, fisheries related taxes, motor fuel tax, alcoholic beverage tax, tobacco tax, marijuana tax, vehicle rental tax, tire fees, the commercial passenger vessel excise tax and large passenger vessel gambling tax, electric and telephone cooperative taxes, an estate tax program and charitable gaming. Employment security (unemployment insurance) tax is collected by the Department of Labor. Property tax is levied locally; the state's own property tax program covers oil and gas property. None of these is withheld from wages.

The Permanent Fund Dividend

Alaska pays an annual dividend from the Permanent Fund to eligible residents. The Permanent Fund Dividend Division announced on September 21, 2026 that the 2026 PFD amount is $1,200, which includes a $200 energy relief payment. The amount is set each year by the Legislature and has varied widely, so the 2027 dividend is not known yet. The division's tax information page says dividends for adults are taxable for federal income tax purposes, the entire amount must be reported as taxable income even if part of it was garnished, and recipients view or print their Form 1099-MISC through myPFD. The calculator adds the dividend for the number of eligible people you enter so you can see the full swing against a state that taxes wages: the tax you do not pay plus the dividend you receive.

Same paycheck, other states

Table values come from the projected 2027 calculator used on each state page, for a single filer with $75,000 of wages and no dependents. A state's figure is the state income tax only, before local taxes, credits and federal tax.

Worked example

A single worker earning $75,000 with no dependents, paid every two weeks, compares Alaska with New York. Alaska state income tax: $0.00. The same wages in New York would owe a projected $3,386.00 in 2027, an effective 4.51%, or $130.23 per paycheck. If the worker lives with two other eligible family members, the household's 2026 dividends come to 3 times $1,200, or $3,600, so the combined swing against New York is $3,386.00 of tax not paid plus $3,600 received, $6,986.00 before federal tax on the dividends. The calculator repeats this for any wages, filing status, dependent count, comparison state and household size.

Limits of the comparison

Moving to Alaska does not erase the other costs of a move. Local sales taxes in many communities, property taxes, the cost of living and travel are not in the figure, and income earned in another state can still be taxed there. Use the moving between states take-home pay comparator for a fuller comparison. The dividend has its own eligibility rules, which are on the PFD Division site.

Who this is for, and what it does not cover

It is for people comparing an Alaska paycheck with another state. It does not cover local sales or property taxes, employment security contributions, tax credits, retirement or investment income, self-employment tax, federal income tax or payroll taxes, PFD eligibility, and it does not file or submit anything. The comparison states use the same projected 2027 figures as their own pages.

Sources

Retrieved 2026-11-11. Each link was opened and checked against the claim next to it.

• Alaska Department of Revenue, Tax Division: Personal Income: "currently does not have an individual income tax"; no employee withholding for state income tax; labor questions to the Department of Labor and Workforce Development.
• Alaska Department of Revenue, Tax Division: Sales and Use Tax: no state sales and use tax; some local jurisdictions impose local sales taxes; Alaska Taxable published by the Department of Commerce.
• Alaska Department of Revenue, Tax Division: Tax Types: the 25 programs the division lists, including corporate income tax and no individual income tax program.
• Alaska Department of Revenue: Permanent Fund Dividend: "The 2026 PFD amount is $1,200, which includes a $200 energy relief payment" (September 21, 2026).
• Permanent Fund Dividend Division: Tax Information: dividends for adults are taxable for federal income tax purposes; the entire amount must be reported; Form 1099-MISC through myPFD.