Alaska (AK) · No state income tax · Property tax: 0.84% · Median home (ZHVI): $360,000
Alaska's minimum wage and cost of living index of 103.297 determine the real purchasing power of minimum wage workers. With no state income tax, minimum wage workers in Alaska keep more of their earnings. Housing costs — with a median home price of $360,000 — are a major factor in whether minimum wage provides a livable income.
Minimum wage, median HH income, and COL adjust take-home for the minimum wage calculator in Alaska. Every row cites a primary public dataset. Numbers reflect the most recent vintage available; refresh cadence is documented in the methodology.
A Alaska salary calculation starts with the BLS Occupational Employment and Wage Statistics (OEWS) table for your occupation at the state level, then layers on Alaska's payroll stack: federal income tax (brackets published by IRS), FICA (7.65%), and NO state income tax[1][2].
The formula: take_home = gross − federal_tax − state_tax − FICA − other. "Other" covers 401(k) deferral, HSA, FSA, pre-tax benefits. The calculator below runs this client-side — no inputs leave your browser.
Calc-specific note: Alaska's floor applies when higher than federal $7.25; tipped workers have a separate state-set floor.
Worked example — Alaska
Alaska minimum wage × 40hrs × 52 weeks × (1 − FICA only) gives the annual take-home. Add tipped-worker differential where applicable. Compare against Alaska cost-of-living to gauge real purchasing power.
Effective 2025-01-01 · Tipped-worker rate $11.73/hour · $4.48 above federal floor[1]
| Measure | Alaska | Federal | Difference |
|---|---|---|---|
| Hourly rate | $11.73 | $7.25 | +$4.48 |
| Annualized (40 hr/wk · 52 wk) | $24,398 | $15,080 | +$9,318 |
| Tipped worker rate | $11.73 | $2.13 | +$9.60 |
Same formula, different inputs. Each city name links to its own pSEO page where the calculator is pre-filled with local medians.
| City | Median home | Median rent | HUD FMR 2BR | Median income |
|---|---|---|---|---|
| Anchorage, AK | $414,591 | $1,713/mo | $1,575/mo | $95,918 |
Sources: Zillow ZHVI + ZORI[1], HUD FMR[2], Census ACS[3], Freddie Mac PMMS[4].
These calculators share inputs with the minimum wage formula, so pair them to pressure-test your answer from multiple angles.
| Metric | Alaska | National Avg |
|---|---|---|
| Median Home Price | $360,000 | $420,000 |
| Property Tax Rate | 0.84% | 1.07% |
| State Income Tax | None | 4.6%* |
| Avg Insurance Cost | $1,680/yr | $1,544/yr |
| Cost of Living Index | 103.297 | 100 |
| Household Income — p25 | $46,546 | $41,401 |
| Household Income — p50 (median) | $90,222 | $83,592 |
| Household Income — p75 | $162,300 | $153,000 |
*Average of states that levy an income tax. 2026 estimates. Alaska is the only state with no state income tax AND no state sales tax.[3] Income percentiles from DQYDJ/Census CPS 2024[4].
Track take-home pay: no state income tax means only federal + FICA apply — one of the simpler payroll pictures in the U.S. in Alaska.
Anchor savings goals to the Alaska cost of living index (103.297). A national 20% savings rate needs adjustment up or down depending on local expense floors.
Use tax-advantaged accounts first: 401(k), HSA, IRA. Since Alaska has no income tax, Roth accounts may be especially attractive — you lock in today's zero-state-tax cost forever.
Every number on this page reads from the same CalcFi data repository used by the Live Data pages below — the figures stay consistent.
Home Prices by State
Zillow ZHVI across all 50 states
Property Tax by State
Effective rate × ZHVI = annual bill
Household Income by State
FRED real median + percentile bands
Cost of Living by State
BEA RPP all-items + housing
No-Income-Tax States
Full list + trade-offs
Current Interest Rates
Treasury curve + PMMS + FDIC
CalcFi pSEO pages combine three inputs: (1) the calculator formula itself, which runs client-side so no inputs leave your browser; (2) state-level financial constants from primary public datasets; and (3) national benchmarks for comparison. The Alaska page uses the property tax rate (0.84%), median home price ($360,000), and no state income tax from the sources listed below.
Refresh cadence:state tax brackets and minimum wage rates are reviewed annually after each state's legislative session. Property tax, median home price, insurance, and cost-of-living figures are reviewed annually against the primary sources. Income percentiles are refreshed when the Census CPS/IPUMS releases update (typically September). Page-level dateModified matches the last editorial review date, shown above.
Known limits: statewide averages mask large intra-state variance — county-level property tax and metro-level home prices differ significantly from the figures shown. For the most precise calculations, cross-check the output against your actual county assessor and the latest federal/state tax tables at filing time.
Use Minimum Wage Calculator for any city in Alaska.
Every number on this page cites a primary public dataset. Last reviewed (auto-bumped by the next ISR refresh after an ETL run).
CalcFi does not sell data. If you spot an error, email hello@calcfi.app with the URL and the correct figure.
Calculate minimum wage income by state, hours, and tipped status. Compare state vs federal rates with annual take-home pay and poverty line analysis.
Auto-updated · Verified daily against IRS, Fed & Treasury sources
Enter your numbers below
Based on your inputs
California • $17/hr • 40 hrs/wk
| Hourly Rate | $17/hr |
|---|---|
| Weekly Gross | $660 |
| Monthly Gross | $2,860 |
| Annual Gross | $34,320 |
| Federal Income Tax | -$2,134 |
| FICA (Social Security + Medicare) | -$2,625 |
| Annual Take-Home Pay | $29,561 |
| Monthly Take-Home Pay | $2,463 |
| vs Federal Minimum ($7.25/hr) | +$19,240/yr |
|---|---|
| vs Poverty Line ($15,060) | 228% of poverty line (+$19,260) |
| vs Est. Living Wage ($17.50/hr) | -$2,080/yr gap |
Analyze 3+ calcs to unlock your Financial Picture dashboard (cross-analysis of all your numbers).
The federal minimum wage of $7.25 per hour has remained unchanged since July 24, 2009 — over 16 years. This is the longest period without a federal minimum wage increase since the Fair Labor Standards Act established the minimum wage in 1938. Adjusted for inflation, the $7.25 federal minimum wage has lost approximately 30% of its purchasing power since 2009, making it worth roughly $5.00 in 2009 dollars.
At $7.25 per hour working 40 hours per week, 52 weeks per year, a worker earns $15,080 annually — barely above the federal poverty line for a single person ($15,060). For a single parent with one child, the poverty threshold is $20,440, meaning a full-time federal minimum wage worker falls well below the poverty line for any household size larger than one.
Multiple proposals to raise the federal minimum wage to $15/hour or higher have been introduced in Congress but have failed to pass. In the absence of federal action, states and cities have taken the lead, creating a patchwork of minimum wage rates across the country that varies dramatically by geography.
The highest state minimum wages in 2025 reflect years of legislative action and ballot initiatives. Washington state leads at $16.66/hour, followed closely by California ($16.50), Connecticut ($16.35), and New York ($15.50 statewide, higher in NYC). The District of Columbia, while not a state, has the highest minimum wage jurisdiction at $17.50/hour.
Many of these high-minimum-wage states have implemented automatic annual adjustments tied to the Consumer Price Index (CPI). This means their minimum wages increase every year without requiring new legislation. States with CPI-indexed minimum wages include Arizona, California, Colorado, Maine, Minnesota, Montana, Ohio, Oregon, South Dakota, Vermont, and Washington. These automatic increases ensure that minimum wage workers do not see their purchasing power erode with inflation.
At the other end of the spectrum, 20 states follow the federal minimum of $7.25/hour. These are predominantly in the South and rural areas: Alabama, Georgia, Idaho, Indiana, Iowa, Kansas, Kentucky, Louisiana, Mississippi, New Hampshire, North Carolina, North Dakota, Oklahoma, Pennsylvania, South Carolina, Tennessee, Texas, Utah, Wisconsin, and Wyoming. Two states — Georgia and Wyoming — technically have state minimum wages below $7.25, but the federal rate applies as a floor.
The federal tipped minimum wage is $2.13/hour — a rate that has not changed since 1991. Under federal law, employers can pay tipped workers (those who regularly receive more than $30/month in tips) this reduced rate, with the requirement that tips bring the worker's total hourly earnings to at least the full $7.25 minimum. If tips fall short, the employer must make up the difference.
In practice, enforcement of this"tip credit" provision is challenging. Workers may not track their tips accurately, may face retaliation for reporting shortfalls, or may not understand their rights. The Department of Labor has found widespread violations of tip credit rules in restaurant audits.
Seven states have eliminated the tipped minimum wage entirely, requiring that tipped workers receive the full state minimum wage before tips: Alaska, California, Minnesota, Montana, Nevada, Oregon, and Washington. In these states, tips are genuinely additional income on top of a full minimum wage, resulting in significantly higher total compensation for tipped workers. Several other states have tipped wages well above the federal $2.13 — Arizona at $11.70, Colorado at $11.79, and Florida at $9.98.
Beyond state laws, dozens of cities and counties have enacted local minimum wages above their state levels. Notable examples include Seattle ($19.97 for large employers), San Francisco ($18.67), Denver ($18.29), and New York City ($16.00). These local rates typically apply within city limits and affect businesses above certain size thresholds.
The trend toward local minimum wage laws has accelerated since 2015, particularly in progressive-leaning cities within otherwise low-minimum-wage states. However, some states have enacted preemption laws that prohibit cities from setting their own minimum wages — including Texas, Georgia, and Tennessee. This creates situations where workers in major cities like Houston or Atlanta earn the federal minimum despite high local costs of living.
Research on the effects of minimum wage increases has become more nuanced over the past decade. The traditional concern — that higher minimum wages would cause job losses — has been challenged by numerous studies showing minimal employment effects from moderate increases. The Congressional Budget Office estimated that a $15 federal minimum wage would raise pay for 17 million workers while potentially reducing employment by 1.4 million — a significant net positive for low-wage workers as a group.
For workers, the difference between a $7.25 and $15.00 minimum wage is enormous: $15,080 vs. $31,200 annually at full-time hours. This $16,120 annual difference can mean the difference between poverty and basic financial stability, affecting housing security, food access, healthcare utilization, and child poverty rates. States that have raised their minimum wages have generally seen reductions in poverty rates and government assistance enrollment.
The concept of a"living wage" represents the hourly rate a full-time worker needs to cover basic expenses without relying on public assistance programs like food stamps (SNAP), Medicaid, or housing subsidies. Unlike the minimum wage, which is set by legislation, the living wage is calculated based on actual costs of housing, food, healthcare, transportation, childcare (if applicable), taxes, and a minimal amount for other necessities.
The MIT Living Wage Calculator, the most widely cited source, estimates that a single adult with no children needs between $15 and $25 per hour depending on location. In low-cost areas like rural Arkansas or Mississippi, a single adult's living wage might be $15-$16/hour. In high-cost metros like San Francisco, New York City, or Honolulu, the living wage exceeds $25/hour for a single adult — and climbs to $40-$55/hour for a single parent with two children.
The critical distinction between minimum wage and living wage is what each is designed to achieve. The minimum wage was originally conceived as a wage floor to prevent exploitation — not necessarily as a wage sufficient for self-sufficiency. The living wage, by contrast, is explicitly calculated to allow basic self-sufficiency. The gap between these two concepts has widened dramatically as costs of living have risen while the federal minimum wage has remained frozen.
Housing: The largest single expense and the biggest driver of the living wage gap. The national median rent for a one-bedroom apartment is approximately $1,500/month. At the federal minimum wage of $7.25/hour, monthly gross income is $1,257 — meaning rent alone exceeds total gross income. Even at $15/hour ($2,600/month gross), a $1,500 rent consumes 58% of income — well above the recommended 30% threshold. The National Low Income Housing Coalition calculates that a minimum wage worker can afford a two-bedroom apartment at fair market rent in zero US counties.
Healthcare: For workers without employer-sponsored insurance, individual marketplace plans average $450-$600/month for meaningful coverage. At minimum wage, this represents 35-48% of gross monthly income — making healthcare coverage effectively unaffordable without subsidies. This is why 28% of minimum wage workers are uninsured, compared to 8% of workers overall.
Food: The USDA's"thrifty food plan" estimates $250-$350/month for a single adult. At minimum wage, this is 20-28% of gross income. Minimum wage workers are disproportionately likely to experience food insecurity, with 25% reporting that they sometimes or often did not have enough to eat.
Childcare: For working parents, childcare is often the expense that makes minimum wage work mathematically impossible. Average childcare costs range from $800-$2,000+/month per child. At minimum wage, a single parent's entire paycheck may not cover childcare for one child, creating a paradox where working costs more than not working.
When minimum wage falls short of a living wage, public assistance programs fill the gap — effectively subsidizing low-wage employers. A UC Berkeley study found that 52% of fast-food workers are enrolled in at least one public assistance program, at a cost of $7 billion per year to taxpayers. Similarly, Walmart employees were the largest group of SNAP and Medicaid recipients in many states.
This creates a situation where taxpayers effectively subsidize corporate labor costs. Proponents of higher minimum wages argue that raising the wage would shift these costs from taxpayers back to employers and consumers. Opponents contend that higher wages would lead to price increases, reduced hours, or automation that could leave some workers worse off. The evidence suggests that moderate minimum wage increases (to $12-$15 range) have generally positive effects on worker welfare with modest impacts on employment and prices.
While systemic solutions like higher minimum wages are important, individual workers earning at or near minimum wage can take steps to improve their financial situation. Building marketable skills through free or low-cost training programs (community colleges, workforce development programs, online certifications) is the most reliable path to higher wages. Fields like healthcare support, skilled trades, technology, and logistics offer above-minimum-wage entry points with significant advancement potential.
Accessing all available public benefits is essential for minimum wage workers. Many eligible workers do not claim benefits they qualify for — an estimated $60+ billion in EITC, SNAP, Medicaid, and housing assistance goes unclaimed annually. Using benefits should not carry stigma; these programs exist precisely to support working people whose wages fall short of living expenses.
Negotiating for better terms — whether higher wages, more hours, better shifts, or employer-sponsored benefits — is also important. Even in minimum wage jobs, employers facing labor shortages may be willing to pay above the minimum for reliable, experienced workers. Workers who demonstrate value and advocate for themselves often find opportunities for advancement and better compensation over time.
The federal minimum wage is $7.25/hour, unchanged since 2009. However, 30+ states and many cities have higher minimum wages. Workers are entitled to whichever rate is higher — federal, state, or local.
The highest minimum wages are in DC ($17.50), Washington ($16.66), California ($16.50), Connecticut ($16.35), and New York ($15.50). Many of these states have automatic annual CPI increases.
The federal tipped minimum is $2.13/hour — employers must make up the difference if tips don't reach $7.25/hour. Seven states (including CA, WA, OR) require full minimum wage plus tips.
At $7.25/hour full-time, annual income is ~$15,080 — barely above the poverty line for a single person ($15,060). In most metro areas, a living wage requires $15-$25/hour for a single adult.
The federal minimum hasn't changed since 2009. Many states have scheduled annual increases or CPI-indexed adjustments. Check your state's labor department for upcoming changes.
Minimum wage is the legal floor set by federal, state, or local law. Living wage is the amount needed to cover basic expenses like housing, food, transportation, and healthcare in a specific area. The MIT Living Wage Calculator estimates living wages of $15 to $25 per hour for single adults depending on location.
Yes, salaried employees must earn at least minimum wage for all hours worked. Non-exempt salaried workers earning below $684 per week ($35,568 annually) must receive overtime pay for hours over 40 per week. Exempt employees must meet both salary and duties tests to be excluded from overtime requirements.
Higher minimum wages increase labor costs by 10 to 30 percent for minimum-wage-dependent businesses like restaurants and retail. Studies show modest increases have minimal employment effects while significantly reducing worker turnover. Many businesses offset costs through small price increases of 1 to 4 percent and improved productivity from lower turnover.
The federal tipped minimum wage is $2.13 per hour, with tips expected to bring total compensation to at least $7.25. If tips fall short, the employer must make up the difference. Many states set higher tipped minimum wages than the federal rate.
Multiply the hourly rate by 2,080 hours for a full-time year. At $7.25 federal minimum wage, that equals $15,080 per year before taxes. At $15 per hour, annual gross pay is $31,200. Subtract approximately 20-25% for taxes to estimate take-home pay.
Annual Gross = Hourly Rate x Hours/Week x Weeks/Year
Take-Home = Gross - Federal Tax - FICA (7.65%)
Poverty Threshold = $15,060 (single person, 2024 HHS guidelines)
State rates based on 2025 Department of Labor data.
Every formula on this page traces to a federal agency, central bank, or peer-reviewed institution. We cite the rule-makers, not secondhand blogs.
Found an error in a formula or source? Report it →
Result: $34,320/yr gross · $27,456 net (20% tax)
CA 2025 min wage statewide $16.50. Fast-food workers $20/hr per AB 1228. Healthcare $18-$25 by SB 525. State min higher than federal $7.25.
Result: $15,080/yr gross · below poverty line for family of 2
DOL: 20 states still use federal $7.25 (unchanged since 2009). HHS 2024 poverty guideline for family of 2: $20,440 — a FT min-wage worker in GA is below.
Result: $25,683/yr gross (tips + base)
FLSA §3(m): tip credit allowed up to $5.12/hr IF tips reach $7.25 total. Employer must top up if tips short. IRS Form 4137 required on underreported tips.
Result: $43,181/yr gross
Seattle Ordinance 125315: large employers $20.76 (2025); state WA min $16.66. City preempts state when higher — always use higher rate (DOL Fact Sheet 16).
Result: $34,320/yr gross
NY 2025 NYC/LI/Westchester $16.50, rest of state $15.50. NY State Labor Law §652. Annual indexing to CPI begins 2026 per 2023 amendment.
Result: $6,528 over 90 days max
FLSA §6(g): under-20 can be paid $4.25/hr for first 90 consecutive calendar days. Some states (CA, NY, MA) don't permit the lower rate.
DOL Fact Sheet 16: pay highest of fed/state/local. CA $16.50, NY $15.50-$16.50, WA $16.66 all override fed.
Impact: Underpaying by $5-$9/hr = $10-$18k/yr wage theft per FT employee — treble damages under many state laws.
FLSA §3(m): employer must ensure tips bring worker to full minimum. If tips short, employer tops up.
Impact: DOL audits recover $300M+/yr in backwages for tip credit violations (DOL WHD statistics).
FLSA exempt salary threshold: $58,656/yr effective 2025 per 2024 rule. Below = must pay OT + hourly.
Impact: Misclassified manager at $45k salary × 50 hrs/wk owes backwages of ~$15k/yr in OT.
SF, LA, Seattle, Chicago, DC set their own higher floors.
Impact: SF 2025 $18.67 vs CA $16.50 = $4,514/yr gap on 40 hrs × 52 wks.
Most states auto-index (FL, OR, AZ, WA). Must recalc Jan 1 each year.
Impact: Static pay rolls drift below minimum every year; DOL recoveries include interest.
State-specific rates, taxes, and cost-of-living adjustments
Calculations are for educational purposes only. Consult a qualified financial advisor for personalized advice.