How Alaska taxes your paycheck
This page estimates what Alaska takes out of your pay in 2026. The short answer: very little. Alaska has no state income tax on wages, and no local income tax either.
The one state deduction you will see is unemployment insurance. Alaska is one of the few states where workers pay a share. In 2026, it is 0.5% of the first $54,200 you earn.
For example, a single person earning $60,000 pays 0.5% of $54,200, which is $271 for the year. That is the most anyone pays to one employer in 2026.
Alaska tax rates and rules for 2026
Alaska doesn't tax wages.
- Unemployment insurance (employee share)
- 0.5% of wages up to $54,200
Local taxes
No local income tax on wages.
What this estimate leaves out
- The unemployment insurance wage base applies per employer. Someone with two jobs, or a couple who both work, may pay more than this estimate shows.
Frequently asked questions
Does Alaska have a state income tax?
No. Alaska ended its individual income tax in 1980. Your Alaska paycheck has no state income tax withheld.
What is the Alaska unemployment insurance deduction on my paycheck?
Alaska workers pay 0.5% of wages toward unemployment insurance in 2026. It stops once you have earned $54,200 from one employer, so the most you pay is $271.
Is there local income tax in Alaska?
No. Alaska cities and boroughs don't tax wages. Some charge sales or property taxes instead, which don't come out of your paycheck.
Sources
- Alaska DOLWD: 2026 unemployment insurance tax rates (employee rate and taxable wage base)
- Alaska Legislature: Ch. 2 SSSLA 1980, repeal of the individual income tax
Figures checked 2026-10-25. The federal side uses the same 2026 rules as the main paycheck calculator, where the formula and method are explained. Found a problem? Tell us.