Alaska tax burden — broken down.
Alaska’s combined tax burden (income + property + sales) lands at 1.04% on our composite — ranking #51 of 51 jurisdictions. Alaska levies no state income tax — burden comes entirely from property and sales taxes.
Alaska burden, broken into 3 components
| Component | Alaska rate | National median |
|---|---|---|
| Top marginal income | 0.00% | ~5.30% |
| Effective property | 1.04% | ~1.07% |
| State sales tax | 0.00% | ~5.50% |
| Combined composite | 1.04% | ~11.87% |
National medians from CalcFi’s 51-state composite. Top marginal is the headline single-filer rate, NOT the effective rate most households actually pay.
Retirement + Social Security in Alaska
Alaska does NOT tax most retirement income (pensions, IRA / 401(k) distributions). Social Security benefits are NOT taxed by Alaska. Federal taxation of these income sources is unchanged regardless of state.
How Alaska compares
Of all 51 US jurisdictions ranked by combined burden composite, Alaska sits at #51. That puts Alaska in the bottom 10 lowest-burden states — high-earners frequently move here from CA/NY for the income-tax savings, even when factoring property/sales tradeoffs. For the live cross-state heat map, see the interactive tax burden map.
Alaska metros — local tax overlay
State rates are uniform across Alaska— but local income, property, and sales taxes vary. Click any metro to run the full income tax calculator pre-populated with that city’s local layer.
More Alaska metros coming as we expand city coverage.
Alaska tax — common questions
What is the Alaska top marginal income tax rate in 2025?
Alaska levies no state income tax. Top marginal rate is 0%.
What is the Alaska effective property tax rate?
Alaska's statewide effective property tax rate is 1.04% of home value (annual). On a $400,000 home that's roughly $4,160/yr. Local variation can be ±0.5pp.
Does Alaska tax retirement income or Social Security?
Alaska does NOT tax most retirement income, and does NOT tax Social Security benefits.
Are there any Alaska-specific tax quirks I should know about?
No state income tax, no state sales tax (some boroughs charge local sales tax 1–7%). Alaska Permanent Fund Dividend (~$1,300–$3,200/yr per resident) is taxable federally but is unique cash income.
Reviewed by CalcFi Editorial · Source: Tax Foundation State Individual Income Tax Rates (Jan 2025). Last verified 2026-04-19. Methodology at /about/editorial.