Alaska Salary Paycheck Calculator

All Your Need to Know: Alaska Salary Paycheck Calculator  

Alaska stands out for its unique tax structure, which can significantly impact take-home pay for residents. Here’s what makes Alaska’s tax system special: 

• No state individual income tax 

• No state sales tax (though local sales taxes average 1.82%) 

• No estate or inheritance tax 

• Low gas tax of 8.95 cents per gallon 

For businesses, Alaska has a graduated corporate income tax ranging from 0% to 9.4%. Property taxes are moderate at 1.07% of owner-occupied home value. 

These factors contribute to Alaska ranking 3rd in the 2024 State Business Tax Climate Index, indicating a favorable tax environment. 

Federal Tax Withholding in Alaska 

Alaska, like all U.S. states, is subject to federal taxation. Here’s an overview of how federal taxes apply to Alaska: 

Federal Income Tax:  

• Alaskans pay federal income tax just like residents of other states. 

• The federal income tax rates and brackets apply uniformly across all states, including Alaska. 

 Individual Income Tax: 

   – Alaska has no state individual income tax. 

Local Tax withholding in Alaska 

Here is an overview of the local tax system in Alaska: 

Sales Tax: 

   – There is no state-level sales tax in Alaska. 

   – However, local municipalities can impose their own sales taxes, resulting in an average combined local sales tax rate of 1.82%. 

Corporate Income Tax: 

   – Alaska has a graduated corporate income tax. 

   – Rates range from 0% to 9.4%, depending on the corporation’s taxable income. 

Property Tax: 

   – The effective property tax rate is about 1.07% of owner-occupied housing value. 

   – Property taxes are primarily levied at the local level, not the state level. 

Oil and Gas Production Tax: 

   – This is a significant source of state revenue. 

   – The tax rate is based on the net value of oil and gas produced in the state. 

Gasoline Tax: 

   – Alaska’s gas tax is 8.95 cents per gallon, which is relatively low compared to other states. 

Alcohol and Cigarette Taxes: 

   – These are excise taxes levied on specific products. 

   – The cigarette tax is $2.00 per pack. 

No Estate or Inheritance Tax: 

   – Alaska does not impose estate or inheritance taxes. 

Permanent Fund Dividend: 

   – While not a tax, it’s worth mentioning that Alaska distributes annual dividends to eligible residents from its oil wealth fund. 

Fisheries Business Tax: 

    – Levied on businesses that process fisheries resources in Alaska or export unprocessed fisheries resources from Alaska. 

Alaska’s tax system is unique due to its heavy reliance on natural resource revenues, particularly from oil and gas. This allows the state to maintain a low tax burden on individuals and businesses compared to many other states. 

Would you like me to elaborate on any specific aspect of Alaska’s state tax system? 

One unique aspect of Alaska’s interaction with federal taxes is related to oil and gas production: 

1. Alaska National Interest Lands Conservation Act (ANILCA):  

• This federal law affects land use and resource management in Alaska, indirectly impacting tax revenues from natural resources. 

1. Federal Oil and Gas Leases:  

• Revenue sharing agreements between federal and state governments for oil and gas production on federal lands in Alaska. 

It’s worth noting that while Alaska’s lack of state income tax can be beneficial for residents, it doesn’t exempt them from federal income taxes. The interplay between state and federal taxes can be complex, especially regarding natural resource management and revenue sharing. 

Alaska State Tax System  

Alaska stands out for its unique tax structure. It has no individual income tax or state sales tax, though local sales taxes average 1.82%. Corporations face a graduated income tax ranging from 0% to 9.4%. Property taxes are moderate at 1.07% of owner-occupied home value.   

The state lacks estate and inheritance taxes. It imposes a gas tax of 8.95 cents per gallon and a $2.00 excise tax. Per capita, Alaska collects $4,189 in state and local taxes and carries $11,799 in debt. The state’s public pension plans are 77% funded. 

Given these factors, Alaska ranks 3rd in the 2024 State Business Tax Climate Index, indicating a generally favorable tax environment for businesses. 

1. FICA & State Insurance Taxes 

1. Pre-Tax deductions (Medical Insurance, 401K etc.,) 

Alaska Tax Brackets for 2024 

2024 Alaska Tax Brackets (Individual Filers) 

2024 Alaska Tax Brackets (Married Filing Jointly) 

2024 Alaska Tax Brackets (Head of Household) 

Median household income in Alaska 

Alaska saw a significant rise in median household income from 2021 to 2022. In 2021, the figure stood at $81,133. By 2022, it had increased to $89,740, representing a jump of over $8,600 in just one year. 

Alaska Tax Brackets 2024