Alaska Personal Income Tax Laws
As much as people dislike paying taxes, it is necessary for federal and most state governments in order to pay for schools, highways, police officers, emergency professionals, and other shared resources. The vast majority of states collect a personal income tax, but some states have no income tax at all (and only one state, Alaska, has neither a sales nor an income tax). In states that collect income taxes, returns typically be filed when federal returns are due (on or around April 15), and typically are calculated together. Those with a secure Internet connection can file their taxes online in most states.
What we call "taxable income" includes money from salaries and wages, dividends and stock profits, and other sources. But child support payments, welfare checks, and some retirement funds are exempt.
Personal Income Taxes in Alaska at a Glance
Alaska is very unique in that it collects neither personal income tax nor retail sales tax, although some local governments levy a small sales tax. Instead, Alaska gets its income primarily from oil and gas revenues (more than half); federal funding; and profits from its oil investments.
Instead of paying income taxes, Alaska residents are actually paid an annual dividend from the Permanent Fund. The state-owned corporation manages investments made from oil and gas revenues, from which residents receive an annual dividend ranging from a few hundred dollars to as much as $2,000.
See the following chart for more details about personal income taxes in Alaska. See FindLaw's Tax Law section for more articles.
|Code Section||Income tax repealed 1/1/79, Alaska Laws 1980, 2d Sp. Sess. §9, ch. 2|
|Who is Required to File||Individual may file at his or her option to obtain certain tax credits for political donations or expenses for household and child care necessary for employment. Credit allowed only if legislature appropriates money. (§43.20.013)|
|Federal Income Tax Deductible||N/A|
|Federal Income Used as Basis||N/A|
Note: State laws are always subject to change at any time through the enactment of new legislation, decisions from higher courts, and other means. While we strive to ensure the accuracy of these pages, you also may want to contact an Alaska tax attorney or conduct your own legal research to verify the state law(s) you are researching.
Research the Law
- Alaska Law
- Official State Codes - Links to the official online statutes (laws) in all 50 states and DC.
Alaska Personal Income Tax Laws: Related Resources
You Don’t Have To Solve This on Your Own – Get a Lawyer’s Help
Meeting with a lawyer can help you understand your options and how to best protect your rights. Visit our attorney directory to find a lawyer near you who can help.
Next Steps: Search for a Local Attorney
Contact a qualified attorney.