Income Tax by State Alaska State Income Tax in 2025: A Guide Read the Article Open Share Drawer Share this:Click to share on Facebook (Opens in new window)Click to share on Twitter (Opens in new window)Click to share on LinkedIn (Opens in new window)Click to share on Pinterest (Opens in new window)Click to print (Opens in new window) Written by TurboTaxBlogTeam Published Feb 24, 2025 3 min read Reviewed by Monika Krulic, EA Alaska is one of the few states without an income tax, making it appealing for residents searching for tax savings. Other states like Florida, Texas, and Nevada also share this benefit. If you’re an Alaskan, you might still be subject to federal income tax for the 2024 tax year (the taxes you’ll file in 2025)—which applies to most earnings. Alaska residents may also run into other types of taxes, such as sales taxes levied by local jurisdictions and property taxes, which vary across municipalities. Understanding your tax responsibilities is important for managing your finances while enjoying the freedom of no state income tax in Alaska. *Note you are still responsible for federal taxes if you make the IRS income filing threshold. This article addresses state-specific taxes only. Table of Contents Specific income tax considerations in AlaskaTalk to a tax expert for freeOther types of common taxes in AlaskaHow to file income tax in Alaska Specific income tax considerations in Alaska Alaska is a tax-friendly state, as it doesn’t have an individual income tax. This means that income sources like retirement and pension funds, investment earnings, Social Security benefits, and military pay are not taxed at the state level, giving you a financial advantage if you call Alaska home. With no state income tax, you can potentially retain more of your earnings. A unique additional type of income which Alaska residents may qualify to receive is the annual Permanent Fund Dividend (PFD). The PFD is taxable on your Federal return. We can help you file the PFD in TurboTax. It’s important to remember that your income may still be subject to federal taxes. Staying on top of your federal tax requirements keeps you compliant while maximizing potential financial benefits. Also, if you earn income in another state with an income tax, you may need to file a return in that state to report those earnings. Talk to a tax expert for free Do you have tax questions? Get answers from one of our tax experts. Experts available 5am – 8pm PST – 7 days a week Chat with an expert Other types of common taxes in Alaska While Alaska does not levy state income tax, residents should be aware of these other common taxes: Property tax: Property taxes in Alaska are assessed and administered at the local level. Rates vary by municipality, and some areas offer exemptions for seniors or disabled veterans. Property tax revenue supports local services like schools and infrastructure. Sales tax: Alaska does not have a statewide sales tax, but local jurisdictions can impose sales taxes. Rates and applicable goods or services vary by location. Always check local rules to understand your sales tax obligations. How to file income tax in Alaska While Alaska doesn’t impose a state income tax, most residents still need to file federal income taxes. It’s also important to consider property and sales taxes, which can impact your financial planning. TurboTax makes filing your federal taxes straightforward while helping you navigate Alaska-specific tax rules. We’ve got you covered, no matter if you want to file DIY or get help from a tax expert. Need more help with your taxes? Connect with a local TurboTax expert for personalized help or let us file for you – from start to finish. Get Started You know your small business—we know business taxes. Our self-employed and business tax experts will ensure you get every tax break with 100% accuracy, guaranteed. Start for free 100% free to start. Pay only when you file. Previous Post Hawaii State Income Tax in 2025: A Guide Next Post Massachusetts State Income Tax in 2025: A Guide Written by TurboTaxBlogTeam More from TurboTaxBlogTeam Leave a ReplyCancel reply Browse Related Articles Tax Help How to File a Business Tax Extension: Deadlines, Forms, and Penalties Tax Tips The White Lotus Tax Lessons: Navigating Gift Taxes, Lump Sum Payouts, Hush Money, and the IRS Tax Questions What Day Are Taxes Due? April 15! How to File for a Tax Extension or Pay Taxes Online Tax Questions What Happens If You File Your Taxes Wrong? Late Filing Penalties, Interest, and More Tax Questions What’s Tax Deductible? A Guide to Mortgage Interest, Long-Term Care, Funeral Expenses, Student Loans, and Roth IRA Contributions Tax Questions Is it Better to Get Your Taxes Done or Do Them Yourself? (And Other Tax Questions Answered) Tax Forms What is a 1099-K Form? 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