Alaska (AK) Paycheck Calculator 2026

What comes out of an Alaska paycheck

An Alaska paycheck has only four deductions required by law: federal income tax, Social Security (6.2%), Medicare (1.45%) and Alaska's employee unemployment insurance contribution of 0.50%. There is no state income tax withholding, no state withholding form to fill in and no city or borough wage tax anywhere in the state.

The unemployment contribution stops once your wages for the year reach $54,200, so the most any worker pays in 2026 is $271.

Example paychecks at Alaska's 2026 minimum wage and at $75,000

Alaska's minimum wage rose from $13.00 to $14.00 an hour on July 1, 2026. A full-time worker at that rate (2,080 hours) earns $29,120 a year. The table compares that worker with a single salaried employee on $75,000, both paid every two weeks with no pre-tax deductions.

• On the $75,000 salary the unemployment deduction stops after the paycheck that takes year-to-date wages past $54,200, so the last few checks of the year are about $14.42 larger than the ones before. The table shows the year's average per check.
• Overtime, tips and bonuses are taxed federally in the normal way. There is no state supplemental rate because there is no state income tax.

Seasonal and out-of-state workers in Alaska

Many people come to Alaska for a summer season in fishing, tourism or construction. Alaska itself takes no income tax from those wages, but your home state may. States with an income tax generally tax their residents on income earned anywhere, so a resident of, say, Oregon or Idaho working a season in Alaska should expect to report those wages on their home-state return and may want to ask the employer for voluntary home-state withholding or make estimated payments.

The unemployment contribution applies to nonresidents too, because it is based on where the work is done, not where you live.

The Permanent Fund Dividend is not payroll income

The 2026 Permanent Fund Dividend is $1,000 plus a $200 energy relief payment, $1,200 in total, with direct deposits starting October 1, 2026. It is not paid through your employer and nothing is withheld from it. It is, however, taxable federal income reported on Schedule 1 (Form 1040). When the 2024 dividend included an energy relief payment, the IRS said the whole payment was taxable and the energy relief portion should not be subtracted.

For a single filer earning $75,000, the $1,200 dividend adds about $264 to the federal tax bill. If several people in your household receive a dividend, consider adding a few dollars of extra federal withholding on your W-4 (Step 4(c)) so the April bill is not a surprise.

Tips for Alaska employees checking a pay stub

A quick checklist when your net pay does not look right:

• Unemployment insurance should be exactly 0.50% of gross wages until you hit $54,200 for the year.
• There should be no line for state income tax. If you see one, it is probably withholding for another state where you live or worked.
• Social Security stops at $184,500 of wages in 2026; Medicare never stops.
• Your federal withholding depends entirely on your federal W-4, so revisit it after a move to Alaska from a state with income tax: your total tax falls, but your federal tax does not change.