Alaska Payroll · No State Income Tax · IRS Publication 15-T
Alaska Paycheck Calculator 2026
Estimate your Alaska take-home pay for hourly or salaried work in a single form. Alaska has no state income tax on wages, but it is one of the few states where employees pay into unemployment insurance, so your paycheck is reduced by federal income tax withholding, Social Security, Medicare, and a 0.50% Alaska unemployment insurance contribution on the first $54,200 of wages. It uses 2026 IRS Publication 15-T rates and the 2026 Social Security wage base ($184,500).
Pay Details
Check this on Form W-4 if you hold two jobs or your spouse also works. It switches to the higher Step 2 withholding schedule.
W-4 Adjustments (Optional)
Annual dependent credit total (e.g. $2,000 per child under 17)
Step 4c additional withholding per paycheck
Alaska State Deductions
Alaska has no state income tax on wages. No state income tax is withheld from an Alaska paycheck, and no borough or city levies a wage tax. The one state deduction is the employee unemployment insurance contribution: 0.50% of the first $54,200 of 2026 wages (maximum $271 per employer per year). This calculator applies it automatically.
Enter your pay details and click Calculate to see your take-home pay breakdown.
Want the full Alaska payroll picture, including the employee unemployment insurance contribution and how to get a refund of any excess, the employer UI rates, the no-tip-credit minimum wage, and why the Permanent Fund Dividend never touches your paycheck? Read the Alaska Payroll Taxes guide.
Alaska Payroll Taxes Guide →Short Answer
This Alaska paycheck calculator estimates net take-home pay after federal income tax withholding, Social Security (6.2%), Medicare (1.45%), and the Alaska employee unemployment insurance contribution (0.50% of the first $54,200 of 2026 wages, $271 maximum). Alaska has no state income tax and no local wage tax. For a single filer earning $20/hr working 40 hours per week paid biweekly, gross pay is $1,600 per period, federal withholding is approximately $108 under the 2026 Publication 15-T percentage method, Alaska unemployment insurance is $8.00, and net take-home is approximately $1,361. For a salaried worker earning $75,000 per year paid biweekly, gross is $2,884.62 and Alaska net take-home is approximately $2,359 for a single filer.
Key Takeaways
- Alaska has no state income tax on wages (it was repealed in 1980) and no borough or city wage tax, so an Alaska paycheck never carries a state or local income tax line.
- Alaska is not deduction-free. It is one of the few states where employees pay into unemployment insurance: 0.50% of the first $54,200 of 2026 wages, a maximum of $271.00 per employer per year (Alaska Department of Labor and Workforce Development).
- The STEP (0.10%) and TVEP (0.25%) amounts you may see referenced are carved out of the 0.50% employee contribution, not added on top of it.
- Worked for two or more Alaska employers and paid more than the maximum? The state refunds the excess on an Employee Application for Refund filed by December 31 of the following year.
- Federal income tax is calculated using the IRS Publication 15-T percentage method applied to your annualized gross wages. Social Security is 6.2% up to $184,500 for 2026; Medicare is 1.45% with no cap, plus a 0.9% surtax withheld above $200,000.
- Alaska does not allow a tip credit, so tipped workers earn the full $14.00 state minimum wage (from July 1, 2026) before tips. Reported tips are wages for federal income tax and FICA. For the OBBBA tip deduction estimate use the No Tax on Tips Calculator.
- Pre-tax deductions (401k, health insurance, FSA) reduce taxable wages and lower actual federal withholding. This calculator does not include them. Under OBBBA, the Dependent Care FSA limit rose from $5,000 to $7,500 for 2026; see the Child Care Tax Benefit Calculator and Dependent Care FSA vs Credit Guide.
- Bonuses and other supplemental wages follow separate withholding rules under IRS Publication 15 section 7 (flat 22 percent or aggregate method). For supplemental pay, use the Bonus Tax Calculator and see the Bonus Tax Withholding Guide; for equity vests see the RSU Tax Calculator and RSU Tax Guide.
2026 Payroll Tax Quick Reference
| Tax | Rate | Wage Base / Threshold | Notes |
|---|---|---|---|
| Federal Income Tax | 10%–37% | No cap | Graduated brackets. Based on W-4 filing status and Publication 15-T percentage method tables. |
| Social Security (OASDI) | 6.2% employee | $184,500 (2026) | Withholding stops at wage base. Employer matches 6.2%. |
| Medicare (HI) | 1.45% employee | No limit | Employer matches 1.45%. |
| Additional Medicare Tax | 0.9% | $200,000 single/HOH; $250,000 MFJ; $125,000 MFS | Employee only. Employer withholds once individual wages exceed $200,000 in the calendar year. |
| Alaska Unemployment Insurance (employee) | 0.50% | $54,200 (2026) | Maximum $271.00 per employer per year. 2025: 0.50% on $51,700. Employer pays its own UI rate on the same base. |
| Alaska State Income Tax | 0% | None | Individual income tax repealed in 1980. |
How This Calculator Works
Hourly Mode: Gross Pay Per Period
Gross pay per period equals the hourly rate multiplied by hours worked per week, then scaled to the pay period. For biweekly pay: hourly rate × hours per week × 2. For weekly: hourly rate × hours per week. For semi-monthly and monthly: hourly rate × hours per week × (52 ÷ periods per year).
Salary Mode: Gross Pay Per Period
Gross pay per period equals annual salary divided by the number of pay periods per year. Weekly: ÷ 52. Biweekly: ÷ 26. Semi-monthly: ÷ 24. Monthly: ÷ 12.
Social Security Tax
Social Security is 6.2% of annualized gross wages up to the $184,500 wage base for 2026. The per-period amount is the annualized Social Security tax divided by pay periods. This calculator does not track year-to-date cumulative wages. For workers approaching the wage base, actual withholding will stop mid-year once the limit is reached.
Medicare Tax
Standard Medicare is 1.45% on all gross wages. The calculator adds the 0.9% Additional Medicare Tax on annualized wages above $200,000, matching the employer withholding rule in IRS Topic 560: employers withhold the surtax once wages exceed $200,000 in a calendar year regardless of filing status. Your final liability on Form 8959 uses filing-status thresholds ($200,000 single/HOH, $250,000 MFJ, $125,000 MFS), so married filers may reconcile the difference at filing.
Federal Income Tax Withholding
The calculator follows IRS Publication 15-T Worksheet 1A (Percentage Method for Automated Payroll Systems) for 2026:
- Annualize the per-period gross pay (multiply by pay periods per year) - line 1c.
- Add Step 4a other income; subtract Step 4b additional deductions - lines 1d-1f.
- Subtract the line 1g allowance: $12,900 for married filing jointly or $8,600 otherwise. If the W-4 Step 2 box is checked, subtract $0 instead. The result is the Adjusted Annual Wage Amount (line 1i).
- Apply the Annual Percentage Method table for the W-4 filing status - the STANDARD schedule, or the Step 2 Checkbox schedule when the Step 2 box is checked - to get the tentative annual withholding (line 2g), then divide by pay periods (line 2h).
- Subtract Step 3 dependent credits divided by pay periods (line 3c).
- Add Step 4c extra withholding per period (line 4b).
Alaska Employee Unemployment Insurance
Alaska is one of only a handful of states where employees, not just employers, pay unemployment insurance tax. The Alaska Department of Labor and Workforce Development sets the employee rate at 0.50% for 2026, the statutory minimum, applied to the first $54,200 of wages each employee earns from each employer. The wage base is recalculated every year as 75% of the average annual wage in Alaska, rounded to the nearest $100; for 2026 that average was $72,332.45, which produced the $54,200 base, up $2,500 from 2025. The calculator computes the annual contribution as 0.50% × the lesser of annual gross or $54,200, then divides it by pay periods: Alaska UI per period = 0.005 × min(annual gross, $54,200) ÷ periods. That gives the correct annual total ($271.00 at most). A real payroll system instead takes 0.50% from each paycheck until year-to-date wages reach $54,200 and then stops, so a worker earning more than the base pays more per check early in the year and nothing at the end.
Part of the employee contribution is redirected by statute: 0.10% to the State Training and Employment Program (STEP, AS 23.15.630) and 0.25% to the Technical and Vocational Education Program (TVEP, AS 23.15.835). Those amounts are credited out of the 0.50%, so the total coming out of your paycheck is still 0.50%. There is no state income tax line: Alaska repealed its individual income tax in 1980, so this calculator deducts $0 for state income tax.
Real-World Paycheck Scenarios
Scenario 1: Hourly Worker, Single Filer, Anchorage
Maria earns $24 per hour working 40 hours per week at a distribution center in Anchorage. She is paid biweekly and files as single with a standard W-4. Her biweekly gross is $24 × 40 × 2 = $1,920.
Annualized gross is $49,920. Worksheet 1A subtracts the $8,600 line 1g allowance (W-4 Step 2 box not checked), giving an Adjusted Annual Wage Amount of $41,320. The STANDARD single schedule applies $1,240.00 plus 12% of the amount over $19,900 ($21,420 × 12% = $2,570.40), for a tentative annual withholding of $3,810.40, divided by 26 periods = $146.55. Maria's annual wages ($49,920) stay under the $54,200 Alaska UI wage base, so the 0.50% applies to every dollar: $1,920 × 0.50% = $9.60 per paycheck, $249.60 for the year.
Scenario 2: The Same Salary in Anchorage vs Seattle
Alaska and Washington are both no-income-tax states, and plenty of workers move between Anchorage and Seattle. Take David, a project engineer earning $90,000 per year, paid biweekly, married filing jointly with a spouse who does not work outside the home. Gross per period is $90,000 ÷ 26 = $3,461.54 in both cities, and federal tax, Social Security, and Medicare are identical. The difference is the state premiums.
Federal withholding detail (MFJ): Annualized gross $90,000 minus the $12,900 line 1g allowance = $77,100 Adjusted Annual Wage Amount. The STANDARD MFJ schedule applies $2,480.00 plus 12% of the amount over $44,100 ($33,000 × 12% = $3,960.00), for a tentative annual withholding of $6,440.00 ÷ 26 = $247.69. Because David earns more than the $54,200 base, his Alaska UI contribution caps at $271.00 for the year, averaged here at $10.42 per period. The same job in Seattle deducts Washington Paid Family & Medical Leave ($27.94) and the WA Cares Fund premium ($20.08) instead, for a Washington net of $2,901.02. In Alaska David keeps $37.60 more every two weeks, about $978 a year. For the Washington side, use the Washington Paycheck Calculator.
Practitioner Insight
The most common Alaska-specific question we see is from workers who were told Alaska has "no payroll tax" and then find an unfamiliar state line on the stub. That line is the employee unemployment insurance contribution, and it is correct: Alaska is one of very few states that charges employees for unemployment insurance. It is small, 0.50% on the first $54,200 for 2026, and it stops once the wage base is reached, so higher earners notice the deduction disappear in late summer or fall. Some payroll systems label it "AK SUI" or "AK UI EE," and it usually shows up in box 14 of the W-2.
The second pattern is seasonal and multi-employer work, which is common in Alaska's fishing, tourism, and oil field economy. A worker with two or three Alaska employers in one year has the 0.50% withheld by each employer on its own wages, so the combined total can exceed the $271 annual maximum. That excess is refundable from the state, but only if the worker files the Employee Application for Refund with copies of the W-2s by December 31 of the following year. We see it missed every year.
A third situation worth flagging: the Permanent Fund Dividend. It is reported on Form 1099-MISC and has no federal withholding, so a household receiving several dividends can owe more at filing than expected. Because Alaska has no state income tax to cushion a federal shortfall, we often suggest a modest Step 4c extra-withholding amount on the W-4 in dividend years rather than a surprise bill in April.
When This Calculator Gives a Less Accurate Estimate
- Pre-tax deductions not entered: A 401(k) contribution of $300 per biweekly period reduces taxable wages by $300. Federal withholding is calculated on the lower amount. This calculator does not include pre-tax deductions; actual net pay is typically higher than the estimate.
- Wages above the Alaska UI base: The calculator averages the annual Alaska UI contribution across all pay periods. If you earn more than $54,200, your real paychecks show a larger UI deduction early in the year and none after year-to-date wages reach the base.
- More than one Alaska employer: Each employer applies the $54,200 base separately, so your combined UI contribution can exceed $271. The excess is refundable from the state, but no single employer's paycheck will reflect that.
- Reported tips: For Alaska restaurant, hotel, and tour workers, reported tips are added to wages for federal income tax, FICA, and Alaska UI. This calculator models base wages only; enter tips as part of gross, or model the OBBBA tip deduction with the No Tax on Tips Calculator.
- Dual-income households: Each employer withholds independently based only on wages it pays. If both spouses earn income and each W-4 uses independent single-job elections, combined federal withholding is often insufficient. Complete the Multiple Jobs Worksheet on Form W-4 or use the IRS withholding estimator at irs.gov.
- Hourly and seasonal workers with variable hours: This calculator uses consistent weekly hours across all periods. Seasonal fishing, cannery, and tourism work with heavy overtime will produce different actual paychecks.
- Working in another state: This calculator assumes Alaska-based employment. If you live in Alaska but physically work in an income-tax state, that state taxes the wages earned there. If you are a resident of an income-tax state working a season in Alaska, your home state may tax those wages, which this calculator does not model.
- Bonuses and supplemental wages: Bonuses are typically withheld at the 22% supplemental rate (below $1 million) or at the aggregate method rate. This calculator covers regular wages only.
Frequently Asked Questions
Does Alaska have a state income tax?
No. Alaska repealed its individual income tax in 1980 (Chapter 1, SSSLA 1980), so no state income tax is withheld from an Alaska paycheck. No Alaska borough or city levies a wage income tax either. An Alaska paycheck is not completely free of state deductions, though: Alaska is one of the few states where employees pay into unemployment insurance, at 0.50% of the first $54,200 of wages for 2026.
What is the Alaska unemployment insurance deduction on my paycheck?
Alaska requires employees to contribute to the state unemployment insurance program. For 2026 the employee rate is 0.50% and the taxable wage base is $54,200, so the most any employee pays to one employer for the year is $271.00. Once your wages from that employer pass $54,200, the deduction stops for the rest of the year. Of the 0.50%, 0.10% is credited to the State Training and Employment Program (STEP) and 0.25% to the Technical and Vocational Education Program (TVEP); those are part of the 0.50%, not added on top. For 2025 the rate was also 0.50%, on a $51,700 wage base. Source: Alaska Department of Labor and Workforce Development.
How is take-home pay calculated in Alaska?
In Alaska, take-home pay equals gross pay minus federal income tax withholding, Social Security tax (6.2%), Medicare tax (1.45%), and the employee unemployment insurance contribution (0.50% of the first $54,200 of 2026 wages). There is no state income tax and no local wage tax. Federal withholding is calculated using IRS Publication 15-T based on your W-4 filing status and annualized income. Social Security stops once cumulative wages reach $184,500 for 2026. Pre-tax deductions such as 401(k) contributions and health insurance premiums reduce taxable wages and are not reflected in this calculator.
I worked for two Alaska employers and paid more than $271 in unemployment insurance. Can I get it back?
Yes. Each employer withholds up to the annual maximum on the wages it pays, so a worker with more than one Alaska employer in a year can pay more than the maximum. The Alaska Department of Labor and Workforce Development refunds the excess on an Employee Application for Refund, filed with copies of your W-2s on or before December 31 of the year after the deductions were made. If you worked for only one employer and it withheld more than the maximum, the employer must refund the excess, not the state.
What is the difference between hourly and salary paycheck calculations?
For salaried employees, gross pay per period equals annual salary divided by the number of pay periods per year. For hourly employees, gross pay per period equals the hourly rate multiplied by hours worked in the period. The tax calculation method is the same for both: IRS Publication 15-T annualizes the per-period gross, applies the graduated withholding tables for the W-4 filing status, then divides back by the number of periods. FICA and the Alaska unemployment insurance contribution apply at the same rates regardless of whether the worker is hourly or salaried. To convert between the two formats, use the Salary to Hourly Calculator.
Are tips taxed on an Alaska paycheck?
Yes. Reported tips are wages for federal payroll purposes, so a server or guide in Anchorage, Juneau, or a summer tourism job owes federal income tax withholding, Social Security (6.2%), and Medicare (1.45%) on reported tips. Alaska has no state income tax on tips. Alaska also does not allow a tip credit: employers must pay tipped workers the full state minimum wage ($14.00 per hour from July 1, 2026) before tips. The One Big Beautiful Bill Act created a federal deduction for a portion of qualified tips for tax years 2025 through 2028, but it is a below-the-line deduction claimed on your federal return, not reflected in paycheck withholding, and it does not reduce Social Security or Medicare tax. Use the No Tax on Tips Calculator for the deduction estimate.
Does pay frequency affect my annual take-home pay?
For a fixed annual salary, pay frequency does not change total annual net pay. A $60,000 salary paid biweekly produces the same annual withholding as the same salary paid semi-monthly or monthly. Individual paychecks are smaller or larger depending on frequency, but annual totals are consistent. For hourly workers, total annual pay depends on actual hours worked each period.
What is the Social Security wage base for 2026?
The Social Security wage base for 2026 is $184,500. Social Security tax at 6.2% applies to wages up to this amount. Withholding stops once cumulative wages for the year exceed $184,500. Medicare has no wage base limit and continues at 1.45% on all wages. Employers withhold an additional 0.9% Medicare surtax on wages above $200,000 regardless of filing status; final liability thresholds are $250,000 for married filing jointly and $125,000 for married filing separately.
Is the Alaska Permanent Fund Dividend part of my paycheck?
No. The Permanent Fund Dividend is paid by the State of Alaska, not by your employer, and it is reported on Form 1099-MISC rather than a W-2. Nothing is withheld for it on your paycheck, and it does not change your wages for Social Security, Medicare, or unemployment insurance. Because no federal tax is withheld from the dividend, some households add Step 4c extra withholding on their W-4 or make an estimated payment to cover the federal tax on it.
How does my W-4 affect my paycheck withholding?
Your W-4 filing status determines which Publication 15-T withholding table applies to your income. Checking the Step 2 box (multiple jobs or a working spouse) switches to the higher Step 2 Checkbox schedule and removes the $8,600 or $12,900 line 1g allowance. Step 3 credits for dependents reduce annual tentative withholding before dividing by pay periods. Step 4a additional income increases the annualized base subject to withholding. Step 4b additional deductions reduce the annualized base. Step 4c requests extra withholding per period. FICA and the Alaska unemployment insurance contribution are not affected by W-4 elections.
Why does my actual Alaska take-home pay differ from this estimate?
This calculator estimates standard federal withholding, FICA, and the Alaska employee unemployment insurance contribution averaged across the year. On a real pay stub the 0.50% unemployment deduction is taken from every paycheck until year-to-date wages reach $54,200 and then stops, so a higher earner sees a larger deduction early in the year and none late in the year. Actual paychecks also reflect pre-tax deductions (health insurance, 401k, FSA), post-tax deductions (Roth 401k, garnishments), tip reporting, employer-specific adjustments, year-to-date Social Security tracking, and mid-year W-4 changes.
What To Do Next
If your paycheck estimate looks lower than expected, check whether pre-tax benefit deductions (401k, health insurance) are reducing your taxable wages. Actual net pay including pre-tax deductions will be higher than this estimate. To understand how your federal withholding connects to year-end tax liability, see our How Payroll Taxes Work guide.
If you worked for more than one Alaska employer last year, add up the unemployment insurance shown on each W-2 and file for a refund of anything over the annual maximum. For hourly workers with overtime, the Hourly Paycheck Calculator lets you model specific hours and frequencies. To understand all the line items on your pay stub, see our How to Read a Pay Stub guide. For the full state picture, including the employee UI refund process, employer UI rates, and the no-tip-credit minimum wage, read the Alaska Payroll Taxes guide.
If you have self-employment income in addition to wages, the 1099 Tax Calculator estimates your full federal tax burden including self-employment tax. If you need to estimate quarterly payments on that income, use the Quarterly Tax Calculator.
Sources & Editorial Disclosure
- IRS Publication 15-T (2026), Employer's Tax Guide to Federal Income Tax Withholding
- IRS Topic 751, Social Security and Medicare Withholding Rates
- IRS Topic 560, Additional Medicare Tax
- IRS Publication 15 (2026), Social Security Wage Base ($184,500)
- Alaska Department of Labor and Workforce Development, Unemployment Insurance Tax Rates for Experienced Employers, 2026 (taxable wage base $54,200; employee rate 0.50%)
- Alaska Department of Labor and Workforce Development, Research and Analysis, Unemployment Insurance Tax Rates and Tax Base for 2026 (memo dated November 6, 2025; maximum employee cost $271; 2025 base $51,700)
- Alaska Department of Labor and Workforce Development, UI, STEP, TVEP Tax Flow Chart (January 21, 2026; STEP 0.10% and TVEP 0.25% credited from the employee UI contribution)
- Alaska Department of Labor and Workforce Development, Instructions for Employee Refunds (Form 07-1466; deadline December 31 of the following year)
- Alaska Department of Labor and Workforce Development, Wage and Hour, Alaska minimum wage ($14.00 from July 1, 2026)
- Alaska Legislature, Chapter 1, SSSLA 1980 (repeal of the individual income tax)
- Authored by Munib Ur Rehman · Reviewed by Nausheen Shahid, LMN Tax Inc. Not affiliated with the IRS. For informational purposes only.