Data Source and Methodology
Authoritative Data Source: Alaska Department of Revenue, Tax Division — Overview of Tax Types (Individual Income Tax: None). Updated periodically by the State of Alaska.
Reference: Alaska Department of Revenue, Tax Division. “Overview of Tax Types (Individual Income Tax).” Accessed 2025.
https://tax.alaska.gov/programs/programs/index.aspx
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The Formula Explained
Because Alaska’s individual income tax rate is zero and there are no local wage taxes, all resulting state and local income tax calculations evaluate to zero for any filing status and any income level.
Glossary of Variables
- Tax Year: Filing year context; Alaska’s state rate remains 0%.
- Annual Taxable Income (I_t): Your estimated taxable income for state purposes.
- Filing Status: Single, Married Filing Jointly, Married Filing Separately, Head of Household. Does not affect Alaska state tax (rate is 0%).
- Permanent Fund Dividend (PFD): Annual dividend to eligible residents; taxable federally, not taxed by Alaska.
- Alaska State Income Tax (T_s): State tax owed; always $0.
- Local Income Tax (T_ℓ): City/county income tax; Alaska imposes none, so $0.
- Total State + Local: Sum of state and local income taxes; $0.
- Effective State Tax Rate (e_s): T_s ÷ I_t; equals 0% when income is greater than zero.
- Net After State Tax: I_t − T_s; equals I_t in Alaska.
- PFD State Tax: State tax on the PFD; always $0.
How It Works: A Step-by-Step Example
Scenario: Tax Year 2025, Single filer, Annual Taxable Income = $100,000, PFD = $1,300.
- Compute state tax: T_s = 100{,}000 \times 0 = 0.
- Compute local tax: T_\ell = 100{,}000 \times 0 = 0.
- Total state + local: 0 + 0 = 0.
- Effective state rate: e_s = (0 / 100{,}000)\times 100\% = 0\%.
- Net after state tax: 100{,}000 - 0 = 100{,}000.
- PFD state tax: 1{,}300 \times 0 = 0.
Conclusion: In Alaska, your state and local income tax obligation is always $0; planning can focus on federal income and payroll taxes.
Frequently Asked Questions (FAQ)
Does Alaska have a state income tax?
No. Alaska does not levy an individual state income tax.
Do any cities or boroughs in Alaska impose a local income tax?
No. Alaska has neither state nor local income taxes on wages and salaries.
Is the Alaska Permanent Fund Dividend (PFD) taxed by the state?
No. The PFD is not subject to Alaska state income tax. However, it is taxable income at the federal level.
Will my filing status change the Alaska result?
No. Since the state rate is 0%, your Alaska state income tax remains $0 regardless of filing status.
What if I moved to or from Alaska mid-year?
Alaska imposes no individual income tax regardless of residency period. Confirm federal residency rules separately for federal taxation.
Does self-employment income incur Alaska state tax?
No. There is no Alaska state income tax on self-employment income. Federal SE tax still applies.
Is this calculator compliant and accessible?
Yes. It follows WCAG 2.1 AA standards, supports keyboard navigation, has visible focus states, and provides inline validation and tooltips.