If you’re wondering, “How do I figure out how much money I take home in Alaska?” we’ve got you covered.
Use our simple paycheck calculator to estimate your net or “take home” pay after taxes, as an hourly or salaried employee in Alaska.
Paycheck Calculator
Paycheck Calculator
Disclaimer: Please note that this paycheck calculator is designed to provide an estimate and should not be considered as professional tax advice. The actual withholding amounts and taxes owed may vary depending on individual circumstances and other factors. For accurate and personalized tax advice, we recommend consulting with a tax professional.
If your gross pay is $77,000.00 per year in the state of Alaska, your net pay (or take home pay) will be $61,401.40 after tax deductions of 20.26% (or $15,598.60). Deductions include a total of [1] 12.61% (or $9,708.10) for the federal income tax, [2] 0.00% (or $0.00) for the state income tax, [3] 6.20% (or $4,774.00) for the social security tax and [4] 1.45% (or $1,116.50) for Medicare.
The Federal Income Tax is collected by the government and is consistent across all U.S. regions. In contrast, the State Income Tax is levied by the state of residence and work, leading to substantial variations. The Social Security Tax is used to fund Social Security, which benefits retirees, persons with disabilities and survivors of deceased workers. Medicare involves a federal payroll tax designated for the Medicare insurance program. As of 2022, Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington and Wyoming do not levy a state income tax.
Meanwhile, get ahead with our free resources:
How Does the Paycheck Calculator Work?
Input your salary information, such as wage and pay frequency, and our tool will handle the tax calculations for you. Once you’ve filled in all the information, click the “Calculate Tax” button, and the calculator will provide an estimate of your net or “take home” pay for the specified pay period.
Overview of Alaska Taxes
Alaska has a unique financial landscape with a 0% income tax rate.
In Alaska, you’ll have federal and FICA taxes deducted from your paychecks. This money is allocated to the IRS, contributing to your annual income taxes, Medicare, and Social Security. Medicare tax equals 2.9% of your gross wages, while the Social Security tax is 12.4%, shared between employers and employees.
The portion you pay comes out of your paycheck. Consequently, your yearly paychecks don’t sum up to your full annual salary due to these deductions.
Your employer determines the withholding based on your Form W-4 details. Whenever you experience a significant life change, such as marriage or having a child, filling out a new W-4 is a must.
The updated W-4 involves a five-step process, allowing you to input personal information, claim dependents, and indicate additional income.
Adjusting your Form W-4 is the simplest method to alter your take-home pay. Specifying the desired withholding amount on your W-4 offers flexibility.
Modifying contributions to accounts like a Flexible Spending Account (FSA) or a 401(k) can decrease taxable income, leading to reduced tax payments.
Your marital status influences your tax deductions. Moreover, your paycheck size can be impacted by pre- or post-tax contributions to employer benefits like a 401(k) or health savings account (HSA). Pre-tax contributions reduce taxable income, while post-tax contributions occur after income tax deductions.
While Alaska lacks state and local income taxes, residents who didn’t reside in the state for the entire year might face taxes from their prior work location.
Though not directly tied to paychecks, the Alaska Permanent Fund impacts overall earnings. Permanent Alaska residents, including children, can apply for a Permanent Fund Dividend (PFD) if they meet residency criteria.
All in all, Alaska is a tax-friendly environment and can be a great choice live and work in, especially if you don’t mind the cold weather.
Median Household Income in Alaska
Salary in each state is typically based off the cost of living. While salaries vary widely based on position, the median household income in your state can give you a glimpse at the average salary a household is earning in your region.
| Year | Median Household Income |
|---|---|
| 2021 | $77,845 |
| 2020 | $77,790 |
| 2019 | $75,463 |
| 2018 | $74,346 |
| 2017 | $73,181 |
| 2016 | $76,440 |
| 2015 | $73,355 |
| 2014 | $71,583 |
| 2013 | $72,237 |
| 2012 | $67,712 |
| 2011 | $67,825 |
Tips for Maximizing Your Paycheck
Here are some tips to help you maximize your paycheck:
- Understand your deductions
- Research tax-saving strategies
- Make the most of your employee benefits
- Create a budget and set financial goals
- Consider overtime and bonuses
- Routinely check for paycheck errors
