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Taxes
Alaska Payroll Taxes 2026: Complete Overview for Employers
Alaska has no state income tax, but employers still owe SUI on the first $49,700 and must handle federal obligations.
Alaska has no state income tax, but employers still face SUI, federal tax obligations, and strict labor laws. We cover it all — written for small business owners, not accountants.
Written by payroll professionals at Pacific Data Services — trusted since 1969.
Alaska has no state income tax, making payroll simpler for employers and boosting take-home pay for employees.
At $49,700, Alaska’s SUI wage base is one of the highest in the nation, meaning employers pay unemployment tax on more wages per employee.
Alaska does not allow a tip credit — tipped employees must be paid the full state minimum wage of $11.73/hr before tips.
Alaska has no state income tax, but employers still owe SUI on the first $49,700 and must handle federal obligations.
Get your EIN, register with Alaska, set up withholding, new hire reporting — the complete checklist.
New employer rate 1.99%, experienced range 1.00%–5.40%, wage base $49,700.
Alaska minimum wage $11.73/hr. Alaska’s minimum wage is $11.73/hr with annual inflation adjustments. No tip credit is allowed — tipped employees must receive the full minimum wage.
IRS classification rules, Alaska-specific considerations, misclassification penalties.
Gusto vs Paychex vs QuickBooks vs ADP — detailed comparison for Alaska small businesses.