Easily estimate take home pay after income tax so you can have an idea of what to possibly expect when planning your budget
Income Before Tax
Take Home Pay
Average Tax Rate
$ = US Dollar
Income Before Tax
Federal Income Tax
State Income Tax
State Tax Credits
State Disability Insurance
State Paid Family and Medical Leave (PFML)
State Unemployment Insurance
State Worker Comp
State Transit Tax
Mental Health Services Tax
Local Income Tax
Take Home Pay
Average Tax Rate
Table of Contents
Enter your employment income into the paycheck calculator above to estimate how taxes in Alaska, USA may affect your finances. You'll then get your estimated take home pay, an estimated breakdown of your potential tax liability, and a quick summary down here so you can have a better idea of what to possibly expect when planning your budget.
This paycheck calculator also works as an income tax calculator for Alaska, as it shows you how much income tax you have to pay based on your salary and personal details.
To learn more about Alaska, its income tax, and tax brackets, so that you can get a deeper understanding of how your budget and finances may be affected, scroll down to the detail section below!
Frequently Asked Questions
What is the income tax rate in Alaska?
The state income tax rate in Alaska is 0% while federal income tax rates range from 10% to 37% depending on your income. This paycheck calculator can help estimate your take home pay and your average income tax rate.
How many income tax brackets are there in Alaska?
Alaska does not have a state income tax so there are no tax brackets. However, there are still tax brackets for federal income tax. For more details, check out our detail section.
How Your Alaska Paycheck Works
Alaska is a land of wonder and adventure, where nature’s beauty and bounty are among the best in the world. From the majestic mountains and glaciers to the vast forests and wildlife, Alaska offers many opportunities for exploration and enjoyment. Whether you’re fishing for salmon, hiking the trails, or watching the northern lights, you’ll always find something to do and see in the Last Frontier.
The state is not only a paradise for outdoor enthusiasts, but it’s also a haven for taxpayers, who enjoy some of the lowest tax burdens in the nation. Let's go over what this means for your paycheck.
The largest item taken from your gross income is typically federal income tax. This is a progressive tax that varies mostly depending on your filing status. The tax brackets used will vary every year to account for inflation and changes in the tax law. We cover this in more detail with an entire section dedicated to federal taxes below.
Your employer will have you fill out a Form W-4 when you start a job. This document will help them calculate how much federal income tax to withhold from your paychecks.
Another withholding you'll see is the FICA tax, which stands for Federal Insurance Contributions Act. This tax helps fund two important social programs: Social Security and Medicare. Social Security provides retirement benefits, disability benefits, and survivor benefits to millions of Americans. Medicare provides health insurance to people who are 65 or older, disabled, etc.
You pay 6.2% of your gross income for Social Security tax and 1.45% for Medicare tax. There is a limit on how much of your income is subject to Social Security tax ($147,000 in 2022), but there is no limit for Medicare tax. Your employer matches your FICA contributions, so the total FICA tax rate is 15.3%. Additionally, if you earn more than a upper threshold, you have to pay an extra 0.9% for Medicare surtax. FICA tax payments help invest in both your future and the future of others.
You may also have some voluntary contributions from your gross income that lower your taxable income and tax liability. These are called pre-tax contributions, and they include things like health insurance premiums, retirement plan contributions, flexible spending accounts (FSAs), and health savings accounts (HSAs). The amount and type of pre-tax contributions you can have depend on your employer's benefit plan and your eligibility.
On the other hand, you may have some items taken from your net income that do not affect your taxable income or tax liability. These are called post-tax items, and they include things like charitable donations and union dues.
One of the benefits of living and working in Alaska is that you don't have to pay state income tax on your earnings. That means you get to keep more of your paycheck than most other states. Instead, the state mainly funds its operations using money earned from petroleum, which accounts for most of its revenue.
At least on the state level, you'll also see no sales tax. Some sources will go as far to say that there's no sales tax at all, but this isn't accurate. Local government has the ability to impose their own sales tax so depending on where you shop, you might see a little bit of tax on your purchases.
Something unique in Alaska that's worth mentioning is the Permanent Fund Dividend (PFD). Although this doesn't affect your paycheck, it can help with your wallet since it pays eligible residents a share of the state’s oil revenue every year. The amount of the PFD varies each year depending on the performance of the Alaska Permanent Fund, which is a sovereign wealth fund that invests the state’s oil royalties and other sources of revenue.
To qualify for the PFD, you must meet certain eligibility requirements, such as being a resident of Alaska for the entire calendar year. The official government website includes details for the full list of criteria here. If you think you're eligible, you can apply for this dividend online at pfd.alaska.gov or with a paper application.
Lastly, although there's no state income tax in Alaska, there is a state unemployment tax that does exist and this is applied on your income up to a certain limit.
More From Investomatica:
For sales tax, please visit our Alaska Sales Tax Rates and Calculator page.
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- The content shown on this page is strictly for educational purposes only. It does not represent advice nor is it a substitute for a professional advisor.
- Estimated results are just estimates. They are not a guarantee of future results.
- Tax situations vary widely and calculations can get very complex. This paycheck calculator only provides a rough estimate according to the most common scenarios for standard employment income that comes from an employer. If you are self-employed, your taxes might differ.
- There may be additional deductions, credits, exemptions, allowances, reliefs, etc depending on many factors. Some factors are about your family such as the number of dependents, children, relatives, parents, etc. Other factors may include mortgage payments, property depreciation, charitible donations, additional voluntary retirement contributions, etc. Whether or not you are handicapped and/or disabled may also sometimes be an additional factor.
- Depending on region and jurisdiction, salary bonuses may be treated and taxed differently from standard salary.
- Calculators from other sites may show slightly different numbers due to different deductions/credits being included or they are based on data from a different year.
- Generally, we review changes once a year since tax codes usually change once a year. If you notice a major miscalculation or error with our paycheck calculator (most likely caused by a typo somewhere), feel free to direct message us on twitter and let us know. However, if you have specific questions about your own personal situation, please consult a licensed tax professional.
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