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Alaska has no state income tax — none. In fact, it goes further: Alaska has no state sales tax either (localities can add small sales taxes, but the state itself stays out). The trade-off shows up in property tax, which averages 1.18% — higher than most zero-income-tax states.

The only lines on an Alaska pay stub are federal: the 2026 progressive brackets (10% to 37%) applied after the $16,100 standard deduction (single), plus FICA — 6.2% Social Security up to the $184,500 cap and 1.45% Medicare with no cap. A $75,000 single earner clears about $61,592 a year, and the pay stub shows no state withholding line at all.

The famous Alaska twist: the Permanent Fund Dividend (PFD) pays residents an annual dividend from oil-revenue investments — recently in the $1,300–$1,700 range per person. That's a state payment TO you, effectively a negative income tax. Oil revenue is what makes the zero-tax model possible.

Anchorage adds no local income tax (Alaska bans most local income taxes by statute). The overall cost of living runs high — remote logistics drive up consumer prices — but the tax structure itself is among the lightest in the nation.

Filing in Alaska: there is no state income tax return — nothing to file with the state on wage income. The one annual ritual that matters is the PFD application, open January through March through the Permanent Fund Dividend Division.