How Paycheck Taxes Work in Alaska
How paycheck taxes work in Alaska: Because Alaska has no state income tax, your paycheck deductions are primarily federal income tax, Social Security, and Medicare. Alaska is one of nine states with no state income tax on wages. Residents still pay federal income tax, Social Security, and Medicare. Some municipalities levy local sales or property taxes.
Alaska State Tax Information
Alaska has no state income tax.
Alaska is one of nine states with no state income tax on wages. Residents still pay federal income tax, Social Security, and Medicare. Some municipalities levy local sales or property taxes.
Federal Income Tax
Federal income tax uses progressive brackets — higher income is taxed at higher rates. The standard deduction reduces your taxable income before brackets apply. Your W-4 determines how much your employer withholds each pay period.
Social Security
Social Security tax (FICA) is 6.2% of wages up to the annual wage base ($184,500 in 2026). Both employee and employer pay this amount; this calculator shows the employee portion.
Medicare
Medicare tax is 1.45% on all wages with no cap. High earners pay an additional 0.9% on wages above $200,000 (single) or $250,000 (married filing jointly).