Alaska Paycheck Calculator 2026
Only state that PAYS you. Zero income tax plus Permanent Fund Dividend — $1,000 per resident in 2025. Your $80K salary: $64,831 take-home + $1,000 PFD = $65,831 effective.
2026 federal tax rates · PFD 2025: $1,000 · Updated April 2026
How to Use This Calculator
Tab "Take-Home Pay"
Enter your gross annual salary, pay frequency, and filing status. Because Alaska has no state income tax, the calculator only deducts federal income tax and FICA (Social Security + Medicare). Under "More options," add 401(k) contributions and health insurance premiums to see the impact of pre-tax deductions. The results show your per-paycheck take-home, annual summary, and the Alaska PFD boost — making your effective annual income higher than your salary alone.
Tab "Tax Breakdown"
A visual pie chart showing exactly where your money goes. With Alaska's zero state tax, there is no state slice in the pie — just federal income tax, Social Security, and Medicare. This visually illustrates why Alaska residents keep more of their earnings than residents of most other states.
Tab "Compare States"
See how Alaska compares to neighboring California and Washington for take-home pay on the same salary. The comparison factors in Alaska's $1,000 PFD alongside state tax differences, showing the true total annual advantage of living in Alaska. Especially useful if you are considering a move from California to Alaska.
The Formulas
1. Start with gross annual salary
2. Subtract pre-tax deductions (401k, health insurance)
3. Subtract standard deduction ($15,750 Single / $31,500 MFJ / $23,500 HoH)
4. Apply progressive brackets: 10%, 12%, 22%, 24%, 32%, 35%, 37%
Alaska State Tax:
AK state income tax = $0.00 (zero, always)
No local income taxes. No state disability insurance. No state payroll taxes on employees.
No state sales tax either — Alaska is the only state with no income tax AND no sales tax.
Alaska Permanent Fund Dividend (PFD):
2025 PFD = $1,000 per eligible resident
Paid annually to every qualified Alaska resident. Federally taxable as ordinary income.
Family of 4 effective PFD = 4 x $1,000 = $4,000/year
FICA (Federal Insurance Contributions Act):
Social Security = 6.2% x min(Gross wages, $184,500)
Medicare = 1.45% x Gross wages
Additional Medicare = 0.9% x max(0, Gross wages - $200,000)
Take-Home Pay:
Net = Gross salary - Federal tax - Social Security - Medicare - Pre-tax deductions
Effective net = Net + PFD ($1,000 for a single eligible resident)
All figures use 2026 IRS rates: SS wage base $184,500 (SSA), tax brackets from Rev. Proc. 2025-32, TCJA rates made permanent by OBBBA. Alaska has had no state income tax since statehood in 1959. The Permanent Fund Dividend has been paid every year since 1982, funded by Alaska's oil wealth sovereign fund.
Example
Michael — Software Engineer in Anchorage, Alaska
Filing Single. $80,000/year salary. Paid biweekly (26 paychecks). No pre-tax deductions. Alaska PFD eligible.
Federal taxable income = $80,000 - $15,750 (standard deduction) = $64,250. Federal tax: 10% on first $11,925 + 12% on next $36,550 + 22% on remaining $15,775 = $1,193 + $4,386 + $3,471 = $9,049. FICA: $4,960 (SS) + $1,160 (Medicare) = $6,120. Total deductions: $15,169. Michael keeps 81.0% of his gross salary from his paycheck — and then receives an additional $1,000 PFD, making his effective annual benefit $65,831. If he moved from California, he would save roughly $4,278/year in state taxes plus receive $1,000 in PFD — a total annual advantage of nearly $5,278.