New York vs Alaska Taxes
Compare the total tax burden between New York (3.9% – 10.9%) and Alaska (no income tax). Enter your income to see which state saves you more.
| Tax Component | New York | Alaska |
|---|---|---|
| Federal Tax | $13,170 | $13,170 |
| State Tax | $4,860 | $0 |
| FICA | $7,650 | $7,650 |
| Total Tax | $25,680 | $20,820 |
| Take-Home | $74,320 | $79,180 |
| Effective Rate | 25.68% | 20.82% |
| Annual Difference | $4,860 more | $4,860 less |
The $4,860 difference is primarily because New York has a progressive income tax with rates up to 10.9%, while Alaska has no state income tax. At your income level, New York's marginal rate is 5.9%.
Why the difference
You'd save $4,860/year ($405/month) in Alaska vs New York.
Tax structure
New York uses progressive brackets up to 10.9%, while Alaska has no state income tax.
Effective rate at your income
At $100,000, Alaska's effective state rate is 0.0% vs 4.9% in New York — a 4.9 percentage point gap.
New York local taxes
New York City residents pay an additional 3.1-3.9% city income tax on top of state tax.
Tip: If you work in NYC, the city income tax significantly increases your burden. Living outside the city (e.g., New Jersey, Connecticut, or Westchester) can save 3-4% on city tax, but commuter taxes and higher property taxes may partially offset the savings.
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.
New York Total Tax
$25,68025.68% effective rate
Alaska Total Tax
$20,82020.82% effective rate
Annual Savings
$4,860by living in Alaska
Tax at Different Income Levels
| Income | New York Total Tax | Alaska Total Tax | Annual Savings |
|---|---|---|---|
| $75,000 | $16,861 | $13,408 | Save $3,453 |
| $100,000 | $25,680 | $20,820 | Save $4,860 |
| $150,000 | $44,500 | $36,209 | Save $8,291 |
| $200,000 | $62,401 | $51,073 | Save $11,328 |
Based on single filer, standard deduction, 2026 tax year. Includes federal income tax, state income tax, and FICA.
Why the difference
You'd save $4,860/year ($405/month) in Alaska vs New York.
Tax structure
New York uses progressive brackets up to 10.9%, while Alaska has no state income tax.
Effective rate at your income
At $100,000, Alaska's effective state rate is 0.0% vs 4.9% in New York — a 4.9 percentage point gap.
New York local taxes
New York City residents pay an additional 3.1-3.9% city income tax on top of state tax.
Tip: If you work in NYC, the city income tax significantly increases your burden. Living outside the city (e.g., New Jersey, Connecticut, or Westchester) can save 3-4% on city tax, but commuter taxes and higher property taxes may partially offset the savings.
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
New York
New York's state income tax has progressive brackets reaching 10.9%. New York City residents pay an additional city income tax of 3.078-3.876%, making the combined state+city marginal rate up to 14.776% — the highest combined rate in the nation. The Yonkers surcharge adds another 16.75% of state tax for Yonkers residents.
Tip: If you work in NYC, the city income tax significantly increases your burden. Living outside the city (e.g., New Jersey, Connecticut, or Westchester) can save 3-4% on city tax, but commuter taxes and higher property taxes may partially offset the savings.
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: New York has a progressive income tax (3.9% – 10.9%), 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 New York or Alaska?
Based on income tax alone, Alaska has a lower tax burden. At $100K income, you'd save $4,860 annually in Alaska compared to New York. However, total cost of living also depends on property taxes, sales taxes, and housing costs.
How much would I save moving from New York to Alaska?
A single filer earning $100,000 would save approximately $4,860 per year in total taxes by living in Alaska instead of New York. At $150,000 income, the savings change to $8,291 per year.
What is the income tax rate in New York?
New York has a progressive income tax with rates of 3.9% – 10.9%.
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.