Alaska state income tax
Alaska has no state individual income tax. Wages, self-employment income, capital gains, and retirement withdrawals are not taxed by Alaska at the state level (federal tax still applies). The state funds itself through sales tax and property tax instead.
Does Alaska have a state income tax?
No. Alaska is one of the states with no individual income tax, so there is no state tax on your wages or salary. Alaska has no state individual income tax. Residents have no state income tax liability on wages, salary, or other earned income. The legislature repealed the individual income tax provisions of the Alaska Net Income Tax Act (AS 43.20) in 1980 (SLA 1980, ch. 2, 2nd SS) and it has not been reenacted; only the corporate net income tax portions of AS 43.20 remain in force.
| Item | Alaska |
|---|---|
| State income tax | None |
| Capital gains tax | None (no income tax) |
| State sales tax | 0% (plus local) |
| Avg. property tax rate | 0.94% of home value |
| Estate / inheritance tax | None |
How does Alaska tax capital gains?
Alaska does not tax capital gains, because it has no state income tax. You still owe federal capital gains tax. See how capital gains tax works in 2026.
What about retirement income in Alaska?
Because Alaska has no income tax, Social Security, pensions, and 401(k)/IRA withdrawals are all untaxed at the state level. See Alaska retirement taxes for the full picture.
Sources
- Alaska income tax: Alaska Department of Revenue / Taxation.
- Alaska capital gains treatment: Alaska tax authority.
- Alaska sales tax: Alaska Department of Revenue.