Alaska Tax Guide for Employers (2026) 

Alaska is one of nine states that does not levy a state income tax on earned wages. Alaska is one of nine states that does not levy a state income tax on earned wages. This makes payroll simpler for employers, as there is no state income tax withholding to manage. However, employers are still responsible for federal taxes and the state unemployment insurance contribution. 

Alaska does not impose a state income tax on individual wages. This means employers do not need to withhold any state income tax from employee paychecks. Employees get to keep more of their gross pay, and payroll administrators have one fewer withholding calculation to manage.

Even without a state income tax, Alaska employers are still required to pay into the state’s unemployment insurance fund. 

Your specific SUTA rate will be assigned by the state based on your company’s history with unemployment claims. New employers typically start at the default rate until they build enough experience for an individualized rate. 

While Alaska keeps things simple at the state level, all standard federal payroll taxes still apply. 

Follow these steps to begin withholding Alaska payroll taxes for your employees: 

1. Obtain your Federal EIN at irs.gov
2. Register your business for SUTA with the Alaska Department of Labor at labor.alaska.gov
3. No state income tax withholding registration required
4. Submit a Netchex tax team request to enable Alaska SUTA in your company
5. Have each employee complete their tax forms with an automated onboarding task in Netchex, digitally storing tax forms
6. Configure any additional tax settings in the employee profile

Once setup is complete in Netchex, the system will automatically calculate, withhold, and remit all Alaska payroll taxes on your behalf. 

The following are general filing and deposit deadlines for Alaska payroll taxes. Deadlines may vary based on your employer size and deposit frequency. Always verify current schedules at Alaska Department of Labor and Workforce Development. 

Note: Deadlines are subject to change. Always confirm current requirements directly with Alaska Department of Labor and Workforce Development at https://labor.alaska.gov/estax/. 

Running payroll in Alaska is relatively straightforward. Without a state income tax, you’ll primarily focus on federal withholdings and the employer-paid SUTA contribution. The key things to stay on top of are making sure your SUTA rate is current each year and that federal withholdings are calculated correctly based on each employee’s W-4. 

The following official resources will help you stay current on Alaska payroll tax requirements: 

• Alaska Department of Labor and Workforce Development
• Alaska SUTA — Department of Labor

Does Alaska have a state income tax? 

No. Alaska does not levy a state income tax on wages. No state withholding is required. 

What is Alaska’s SUTA wage base? 

Alaska’s SUTA wage base is $49,700 per employee per year (2025). Verify current rates at labor.alaska.gov. 

Does Alaska have local payroll taxes? 

No. Alaska has no local income taxes at the city or county level. 

What payroll taxes does an Alaska employer owe? 

Alaska employers owe FUTA and SUTA. There is no state income tax to withhold.