Does alaska have income tax?

The State of Alaska currently does not have an individual income tax, therefore no employee withholding for state income tax is required. Note: For information on unemployment insurance tax (also called Employment Security Tax), or Workers' Compensation, contact the Alaska Department of Labor and Workforce Development at labor.alaska.gov. read more

Alaska is the only state that does not collect state sales tax or levy an individual income tax on any type of personal income, either earned or unearned. Instead, every Alaskan, children as well as adults, receives a payment each year from the Alaska Permanent Fund Corporation. read more

Alaska depends primarily on petroleum revenues and federal subsidies. This allows it to have the lowest individual tax burden in the United States, and be one of only five states with no state sales tax, one of seven states that do not levy an individual income tax, and one of two states that has neither. read more