Hawaii vs Alaska Taxes
Compare the total tax burden between Hawaii (1.4% – 11%) and Alaska (no income tax). Enter your income to see which state saves you more.
| Tax Component | Hawaii | Alaska |
|---|---|---|
| Federal Tax | $13,170 | $13,170 |
| State Tax | $5,796 | $0 |
| FICA | $7,650 | $7,650 |
| Total Tax | $26,616 | $20,820 |
| Take-Home | $73,384 | $79,180 |
| Effective Rate | 26.62% | 20.82% |
| Annual Difference | $5,796 more | $5,796 less |
The $5,796 difference is primarily because Hawaii has a progressive income tax with rates up to 11.0%, while Alaska has no state income tax. At your income level, Hawaii's marginal rate is 7.6%.
Why the difference
You'd save $5,796/year ($483/month) in Alaska vs Hawaii.
Tax structure
Hawaii uses progressive brackets up to 11.0%, while Alaska has no state income tax.
Effective rate at your income
At $100,000, Alaska's effective state rate is 0.0% vs 5.8% in Hawaii — a 5.8 percentage point gap.
Tip: In a progressive-bracket state, pre-tax 401(k) and HSA contributions reduce your state tax bill along with federal tax. If you are near a bracket boundary, an additional contribution can drop you into a lower state bracket.
Tip: With no state income tax, your take-home pay in Alaska is higher than most states. However, the cost of living — particularly housing, food, and energy — is significantly above the national average, which can offset the tax savings.
Hawaii Total Tax
$26,61626.62% effective rate
Alaska Total Tax
$20,82020.82% effective rate
Annual Savings
$5,796by living in Alaska
Tax at Different Income Levels
| Income | Hawaii Total Tax | Alaska Total Tax | Annual Savings |
|---|---|---|---|
| $75,000 | $17,304 | $13,408 | Save $3,896 |
| $100,000 | $26,616 | $20,820 | Save $5,796 |
| $150,000 | $45,853 | $36,209 | Save $9,644 |
| $200,000 | $64,722 | $51,073 | Save $13,649 |
Based on single filer, standard deduction, 2026 tax year. Includes federal income tax, state income tax, and FICA.
Why the difference
You'd save $5,796/year ($483/month) in Alaska vs Hawaii.
Tax structure
Hawaii uses progressive brackets up to 11.0%, while Alaska has no state income tax.
Effective rate at your income
At $100,000, Alaska's effective state rate is 0.0% vs 5.8% in Hawaii — a 5.8 percentage point gap.
Tip: In a progressive-bracket state, pre-tax 401(k) and HSA contributions reduce your state tax bill along with federal tax. If you are near a bracket boundary, an additional contribution can drop you into a lower state bracket.
Tip: With no state income tax, your take-home pay in Alaska is higher than most states. However, the cost of living — particularly housing, food, and energy — is significantly above the national average, which can offset the tax savings.
Understanding Each State
Hawaii
This state uses a progressive income tax system with multiple brackets, similar to the federal system. Only the income within each bracket is taxed at that rate, so your effective state rate is lower than the top bracket. Tax planning strategies include maximizing pre-tax retirement contributions to reduce state-taxable income.
Tip: In a progressive-bracket state, pre-tax 401(k) and HSA contributions reduce your state tax bill along with federal tax. If you are near a bracket boundary, an additional contribution can drop you into a lower state bracket.
Alaska
Alaska has no state income tax and no state sales tax, making it one of the most tax-friendly states in the US. However, some local municipalities levy sales taxes. Alaska also distributes an annual Permanent Fund Dividend to residents from oil revenue — typically $1,000-$2,000 per person.
Tip: With no state income tax, your take-home pay in Alaska is higher than most states. However, the cost of living — particularly housing, food, and energy — is significantly above the national average, which can offset the tax savings.
Key Comparison Points
Income tax structure: Hawaii has a progressive income tax (1.4% – 11%), while Alaska has no state income tax.
Beyond income tax: State tax comparisons should also consider property tax rates, sales tax, and cost of living. A state with no income tax may have higher property or sales taxes that offset the savings.
SALT deduction cap: Under OBBBA, the 2026 federal SALT cap is $40,400, phasing out above $505,000 MAGI toward a $10,000 floor. This limits the federal tax benefit of living in a high-tax state, so the gross state tax difference remains close to the net difference for most earners — especially high earners inside the phaseout.
Frequently asked questions
Is it cheaper to live in Hawaii or Alaska?
Based on income tax alone, Alaska has a lower tax burden. At $100K income, you'd save $5,796 annually in Alaska compared to Hawaii. However, total cost of living also depends on property taxes, sales taxes, and housing costs.
How much would I save moving from Hawaii to Alaska?
A single filer earning $100,000 would save approximately $5,796 per year in total taxes by living in Alaska instead of Hawaii. At $150,000 income, the savings change to $9,644 per year.
What is the income tax rate in Hawaii?
Hawaii has a progressive income tax with rates of 1.4% – 11%.
What is the income tax rate in Alaska?
Alaska has no state income tax.
Does Alaska have income tax?
No, Alaska does not levy a state income tax. Residents pay only federal income tax and FICA. However, Alaska may have higher property taxes or sales taxes to compensate.