Alaska Income Tax 2026

Alaska does not levy a state income tax on wages in 2026. Your paycheck is reduced only by federal income tax, Social Security and Medicare - so you keep more than in most states. Alaska has NO state individual income tax on wages or any other income (one of the 9 no-income-tax states; repealed its income tax in 1980). There is also no state-level sales tax, though some municipalities (107 localities) levy local sales taxes ranging ~1-7%. No local/city income taxes exist anywhere in Alaska. Social Security, pensions, and all retirement income are fully untaxed at the state level. Alaska residents also receive the annual Permanent Fund Dividend (PFD) from oil revenues; the PFD is taxable for FEDERAL purposes but not by the state (since there is no state income tax). No standard deduction or personal exemption applies because there is no income tax filing requirement. Confirmed unchanged for 2026 by Tax Foundation and AARP 2026 guides.