Alaska Income Tax
Alaska is one of nine US states with no state income tax. It is the only state that has neither a state income tax nor a state sales tax, making it one of the most tax-friendly states in the country.
Tax Type
No Income Tax
Income Tax Rate
0%
Tax Brackets
None
What You Should Know
Alaska funds state government primarily through oil revenues and has no state sales tax, though some local municipalities levy their own sales taxes (typically 1%–7.5%). Property taxes are collected at the local level. Alaska also distributes an annual Permanent Fund Dividend (PFD) to residents from its oil wealth fund.
Residents still owe federal income tax and FICA taxes on their earnings. The PFD payment is considered taxable income for federal purposes.