Alaska: No State Income Tax
Alaska is the only US state with neither a personal income tax nor a state sales tax. Alaska also distributes the Alaska Permanent Fund Dividend (PFD) to eligible residents annually, a payment funded by oil revenues that has historically ranged from a few hundred to over $3,000 per person per year.
Alaska has no state income tax and no state sales tax. $0 in state income taxes on any salary. Federal income tax still applies to all income — "no state income tax" refers to state-level taxation only.
On a $150,000 salary, an Alaska resident pays $0 in state income tax and $0 in state sales tax. The Alaska Permanent Fund Dividend adds additional income for eligible residents (those who have lived in Alaska for a full calendar year with intent to remain). While Alaska's remote location and high cost of goods in many areas reduce the net financial advantage versus lower-cost-of-living states, the tax environment itself is uniquely favorable.
Alaska's professional job market is concentrated in oil, gas, fishing, government, healthcare, and defense. The tech sector is limited relative to Lower 48 states. Remote workers with location flexibility and Alaska domicile benefit from the zero-income-tax and zero-sales-tax combination, plus potential PFD income.
Local governments in Alaska, including boroughs and municipalities, may levy local sales taxes, but there is no statewide sales tax. Some areas like Juneau and Ketchikan have local sales taxes; others, like Anchorage, do not.
Using Alaska's tax advantage in negotiations
Alaska is rarely used as a negotiation leverage point against other states' job offers due to its geographic distance and distinct labor market. For remote workers choosing a domicile state purely on financial terms, however, Alaska's combination of zero income tax, zero state sales tax, and the PFD makes it a genuinely unusual and favorable option.
Other states with no income tax
Nine US states currently have no personal state income tax. Each has different trade-offs in property tax, sales tax, and cost of living.
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Total Comp CalculatorFrequently asked questions: Alaska income tax
Does Alaska have a state income tax?
No. Alaska has no personal income tax. It is also one of only five states with no state sales tax.
What is the Alaska Permanent Fund Dividend?
The PFD is an annual payment to eligible Alaska residents funded by the state's oil revenue endowment. The amount varies annually and has ranged from roughly $900 to over $3,000 per person. To be eligible, you must be a full-year Alaska resident with intent to remain permanently.
Tax rates shown reflect the best available 2026 information and are provided for informational purposes only. State income tax rates, brackets, and rules change frequently. This page is not tax advice. Consult a qualified tax professional for advice specific to your situation. © CompCalc — compensationcalculator.xyz