How Alaska taxes retirement income
Alaska has no state income tax, so no retirement income is taxed at the state level: not Social Security, not pensions, and not 401(k) or IRA withdrawals. This makes Alaska one of the more tax-friendly states for retirees. Federal income tax still applies.
Retirement income tax in Alaska, at a glance
| Income type | Taxed by Alaska? |
|---|---|
| Social Security | No |
| Pensions | No |
| 401(k) / IRA withdrawals | No |
| Estate / inheritance tax | None |
| Avg. property tax rate | 0.94% of home value |
Does Alaska tax Social Security benefits?
No. Alaska does not tax Social Security benefits. That follows automatically from having no state income tax.
Does Alaska tax pensions and 401(k) or IRA withdrawals?
No. With no state income tax, Alaska does not tax pension income or withdrawals from 401(k) plans and IRAs. You still owe federal tax on withdrawals from traditional (pre-tax) accounts.
For the mechanics of required withdrawals in retirement, see what is an RMD.
Sources
- Alaska taxation of retirement income (Social Security, pensions, 401(k)/IRA): Alaska Department of Revenue / Taxation.