Alaska Income Tax
Alaska levies no state income tax on wages, salaries, or ordinary income. Residents owe no income tax at the state level, though federal income tax, Social Security, and Medicare payroll taxes still apply. Some states without an income tax offset revenue through higher sales or property taxes, so this page links to those calculators to help you build a complete picture of Alaska's overall tax environment. If you recently relocated to Alaska or are comparing states, use the sales tax and property tax tools below alongside the federal income tax calculator to assess your full tax burden. This page is sourced from Alaska Department of Revenue and reflects current Alaska tax law.
Alaska has no state income tax. Alaska levies no individual income tax. The state abolished its individual income tax in 1980 under Alaska Statutes §43.20. State government is funded primarily through petroleum production taxes, corporate income taxes, and distributions from the Alaska Permanent Fund.
Alaska has no income tax
Alaska levies no individual income tax. The state abolished its individual income tax in 1980 under Alaska Statutes §43.20. State government is funded primarily through petroleum production taxes, corporate income taxes, and distributions from the Alaska Permanent Fund. For residents, wages, salaries and investment income are not subject to state income tax in Alaska.
Alaska income tax: frequently asked questions
Does Alaska have a state income tax?
No. Alaska levies no individual income tax. The state abolished its individual income tax in 1980 under Alaska Statutes §43.20. State government is funded primarily through petroleum production taxes, corporate income taxes, and distributions from the Alaska Permanent Fund.
Do I need to file a Alaska state income tax return?
Alaska does not collect a personal income tax, so there is no state income tax return to file. You still need to file a federal return with the IRS.
Does Alaska have a state income tax?
No. Alaska has had no individual income tax since 1980, when it was abolished under Alaska Statutes §43.20. Residents owe no state income tax on wages, salaries, interest, dividends, or any other income.
How does Alaska fund state government without an income tax?
Alaska relies primarily on petroleum production taxes and royalties from oil and gas extraction on state lands, along with corporate income taxes and investment returns from the Alaska Permanent Fund.
What is the Alaska Permanent Fund Dividend?
The Alaska Permanent Fund Dividend (PFD) is an annual payment made to eligible Alaska residents from investment earnings of the state's Permanent Fund. The amount varies each year based on fund performance and legislative appropriation. The PFD is taxable for federal income tax purposes but Alaska imposes no state tax on it.
Does Alaska have a sales tax?
Alaska has no statewide sales tax, making it one of only five states with neither an income tax nor a statewide sales tax. However, many local municipalities levy their own sales taxes, which vary by location.
Official sources
- Alaska no income tax confirmation: Alaska Department of Revenue, as at Jun 12, 2026.
Reviewed by the CalculatorHub team, edited by James Graham, 11 June 2026. See our methodology. General information, not financial or tax advice.