Free Alaska Payroll Tax Calculator

Alaska Payroll Tax Calculator: A Step-by-Step Guide

Understand your take-home pay in the Last Frontier with our straightforward Alaska Payroll Tax Calculator. As Alaska is one of the few states with no state income tax, your payroll calculations are significantly simplified. Follow these steps to estimate your net pay.

Step 1: Enter Your Personal Information

Country: Ensure “United States” is selected. (This is pre-filled.)
State: Choose “Alaska” from the dropdown menu. (This is pre-filled.)
Federal Filing Status: Select your current federal filing status from the dropdown menu (e.g., Single, Married Filing Jointly, Head of Household). This determines your federal income tax withholding rate and is based on your most recent W-4 form.
Federal Allowances: Enter the number of federal allowances you are claiming. This number, also found on your W-4 form, affects the amount of federal income tax withheld from your paycheck.

Step 2: Input Your Pay Information

Gross Wage/Pay Period: Enter your total earnings before any deductions for a single pay period. This is your gross pay.
Pay Period Frequency: Select how often you are paid from the dropdown menu (e.g., Weekly, Bi-Weekly, Semi-Monthly, Monthly). This is crucial for accurate calculations of your withholdings.
Pay Date: Select the date you will be paid using the calendar tool. While this does not impact the tax calculations, it is useful for your records.

Step 3: Calculate and Review Your Withholdings

After entering the information above, the calculator will estimate your withholdings. Here’s a breakdown of what you’ll see:

Federal Income Tax: This is the amount withheld by your employer for federal taxes, based on your filing status and allowances.
Federal Insurance Contributions Act (FICA) Taxes: This consists of two separate taxes:
- Social Security: A standard rate is applied to your gross wages up to the annual wage limit.
- Medicare: A standard rate is applied to all of your gross wages.
Alaska State Unemployment Insurance (SUI): While Alaska does not have a state income tax, it does require a contribution to the state’s unemployment insurance fund. This is calculated as a small percentage of your gross wages, up to a certain annual wage limit.

Important Notes:

This calculator provides an estimate of your net pay based on the information you provide and current federal and Alaska state regulations.
Your actual take-home pay may vary depending on other factors, such as pre-tax deductions for health insurance or retirement savings (e.g., 401(k)), and any additional voluntary withholdings.
It is important to keep your federal W-4 form updated with your employer to ensure the most accurate tax withholding from each paycheck.
Unlike many other states, Alaska does not have a state-specific W-4 form for income tax purposes because there is no state income tax to withhold.

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Alaska Paycheck Calculator: 2025 Tax Rates & Tools

Instantly calculate your take-home pay in Alaska. Our free and updated 2025 Alaska Paycheck Calculator makes it easy for employees and employers to estimate net pay, thanks to one major advantage: No state income tax.

Your Trusted Alaska Payroll Calculator

Welcome to the most comprehensive payroll calculator for The Last Frontier. Whether you’re an employee wanting to see your net pay, or a small business owner in Anchorage, Fairbanks, or Juneau running payroll, this tool simplifies the process.

Because Alaska has no state income tax, your paycheck calculations are much simpler than in other states. However, you still have federal taxes and state-specific deductions to consider. This guide will walk you through everything you need to know about your Alaska paycheck.

Understanding Your Alaska Paycheck: A Breakdown of Deductions

While the absence of state and local income taxes is a significant benefit, several other deductions are taken from your gross pay before you receive your take-home pay (net pay).

Federal Payroll Taxes in Alaska

These taxes are mandated by the federal government and apply to all U.S. states. Your employer withholds these amounts from each paycheck.

Federal Income Tax (FIT): This is the largest tax deduction for most employees. The amount withheld is based on the information you provide on your Form W-4, including your filing status (e.g., Single, Married Filing Jointly), dependents, and any other adjustments. Our calculator uses the latest IRS tax brackets to ensure accuracy.
FICA Taxes (Federal Insurance Contributions Act): This is a combination of two separate taxes that fund federal programs:
- Social Security: For 2025, the Social Security tax rate is 6.2% on all earnings up to a wage base limit of $176,100. Your employer matches this contribution.
- Medicare: For 2025, the Medicare tax rate is 1.45% on all of your earnings, with no wage limit. Your employer also matches this amount. High-income earners may be subject to an additional Medicare tax.
Federal Unemployment Tax Act (FUTA): This tax is paid by employers to fund the federal unemployment program. While it’s not a deduction from an employee’s paycheck, it’s a key part of an employer’s payroll tax liability.

Alaska's State-Specific Payroll Taxes: Beyond No Income Tax

While you won’t see any state income tax on your pay stub, there is one mandatory state-level deduction for employees.

Alaska State Unemployment Insurance (SUI)

This is the primary payroll tax in Alaska. Both employees and employers contribute to the state’s unemployment fund, which provides temporary financial assistance to unemployed workers.

Employee SUI Tax Rate (2025): The employee contribution rate is 0.50% on wages up to the taxable wage base.
Taxable Wage Base (2025): The tax applies to the first $51,700 you earn in a calendar year. Any earnings above this amount are not subject to Alaska SUI tax for the remainder of the year.
Employer SUI Tax Rate (2025): Employer rates vary based on their industry and history of unemployment claims. For new employers, the rate is 1.00%.

Source: Alaska Department of Labor and Workforce Development

Example SUI Calculation:

If an employee earns $1,000 in a pay period (and is under the $51,700 annual wage cap), the SUI deduction would be:

$1,000 (Gross Pay) x 0.0050 (0.50%) = $5.00

Alaska Payroll & Labor Laws

Understanding state labor laws is crucial for both employees and employers to ensure compliance and fair pay.

Alaska Minimum Wage: The minimum wage in Alaska is adjusted annually for inflation. It is a key factor in calculating pay for hourly employees.
Alaska Overtime Regulations: Unlike federal law, Alaska requires overtime pay for non-exempt employees for hours worked over 8 in a single day or over 40 in a workweek. The overtime rate is one and one-half times the employee’s regular rate of pay.
Pay Frequency: Alaska law requires employers to pay employees on a regular schedule, either monthly or semi-monthly, as elected by the employee. Employers must provide a written statement of earnings and deductions with each payment.

The Alaska Permanent Fund Dividend (PFD)

A unique aspect of living in Alaska is the Permanent Fund Dividend (PFD). This is an annual payment made to eligible Alaska residents from the state’s oil wealth savings account.

Important Note: The PFD is not a payroll deduction or part of your paycheck. It is a separate payment you receive from the State of Alaska. However, it’s an important part of your total annual income and is generally subject to federal income tax.

Frequently Asked Questions (FAQ) about Alaska Payroll

Q: Does Alaska have state income tax?

A: No, Alaska is one of the few states that does not levy a state income tax on individuals. You also do not have to worry about local or city income taxes in Alaska.

Q: What is the main state tax deducted from my paycheck in Alaska?

A: The primary state deduction is for State Unemployment Insurance (SUI). For 2025, the employee rate is 0.50% on the first $51,700 of your earnings.

Q: How do I know how much federal income tax will be withheld?

A: The amount of federal income tax withheld is determined by the information you provide on your Form W-4. The more allowances you claim, the less tax will be withheld from each paycheck.

Q: Does the Alaska Permanent Fund Dividend (PFD) come out of my paycheck?

A: No, the PFD is not a payroll deduction. It is a separate, annual payment from the state to eligible residents.

Q: As an employer, what taxes am I responsible for in Alaska?

A: Alaska employers are responsible for matching FICA taxes, paying federal (FUTA) and state (SUI) unemployment taxes, and remitting all withheld taxes to the appropriate federal and state agencies.

Q: Where can I find official information on Alaska's tax rates?

A: The most reliable source for Alaska’s unemployment tax information is the Alaska Department of Labor and Workforce Development. Federal tax information is available from the IRS.

Disclaimer: The content provided on this webpage is for informational purposes only and is not intended to be a substitute for professional advice. While we strive to ensure the accuracy and timeliness of the information presented here, the details may change over time or vary in different jurisdictions. Therefore, we do not guarantee the completeness, reliability, or absolute accuracy of this information. The information on this page should not be used as a basis for making legal, financial, or any other key decisions. We strongly advise consulting with a qualified professional or expert in the relevant field for specific advice, guidance, or services. By using this webpage, you acknowledge that the information is offered “as is” and that we are not liable for any errors, omissions, or inaccuracies in the content, nor for any actions taken based on the information provided. We shall not be held liable for any direct, indirect, incidental, consequential, or punitive damages arising out of your access to, use of, or reliance on any content on this page.

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