Does Alaska Have State Income Tax?

Alaska does not impose a state personal income tax, meaning you typically won’t receive an Alaska tax refund, and there is no Alaska refund status to track for income tax. Learn more about other Alaska state taxes below.

State: Alaska
Tax Information Website: Learn more about Alaska taxes from the Department of Revenue.
Phone Number: 907-269-6620 (Anchorage office) or 907-465-2320 (Juneau office)

FAQs

Does Alaska have a state income tax?

No, Alaska is one of nine states that do not have an income tax as of tax year 2025.

Does Alaska tax Social Security?

No, because Alaska doesn’t have an income tax, it also does not tax Social Security or any other form of retirement income. Federal taxes on Social Security may still apply.

Does Alaska tax retirement income?

Alaska doesn’t tax retirement income. This means all retirement income, including pension payments, Social Security benefits, and withdrawals from 401(k) plans and IRAs, is free from state taxes.

Do you need to file a tax return in Alaska?

You don’t need to file a personal Alaska state income tax return, since the state does not have an income tax. However, many residents will still need to file a federal tax return if their income meets the IRS tax filing threshold (and may be able to claim a federal refund).

Alaska residents may also qualify for the annual Permanent Fund Dividend (PFD), which is a share of the state’s oil royalties. The PFD needs to be reported on your federal return.

Alaska levies a corporate income tax, so business owners may need to file an Alaska business return for their C corp, S corp, or partnership. “Small corporations” may be exempt if they meet specific criteria.

Does Alaska have a sales tax?

Alaska does not have a statewide sales tax, but many cities, local municipalities, and boroughs within Alaska impose their own local sales tax. The local sales tax in Alaska ranges from 0% to approximately 7.85%, depending on the location.

Is Alaska a tax-free state?

Although Alaska doesn’t tax income, it’s not a tax-free state. Alaska has the following taxes:

• Corporate income tax
• Local sales tax (average combined state and local sales tax rate is 1.82%)
• Corporate income tax
• Gasoline tax
• Cigarette excise tax
• Property tax (no statewide property taxes, local only)
• Industry-specific taxes (fisheries, oil and gas, mining, etc.)
• Other types of local taxes include raw fish taxes, hotel/motel “bed” taxes, severance taxes, liquor and tobacco taxes, gaming (pull tabs) taxes, and fuel transfer taxes.

Where’s My State Refund? Check Your Filing Status in Every State.

The bottom line

There are no Alaska state refunds because Alaska doesn’t have a state income tax. Residents don’t have to file a personal state return for this reason. However, you’ll likely still need to file a federal tax return, and depending on your situation, you may owe other state taxes, such as local sales tax or local property tax.

If you need help with your federal tax preparation, TaxAct® can help you e-file quickly and confidently.

This article is for informational purposes only and not legal or financial advice.

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Meghen Ponder: Meghen Ponder is an editorial writer for TaxAct who specializes in writing content about finance and taxes. She enjoys decoding the intricacies of the tax world and helping others answer their tax questions.