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Alaska Retirement Income Tax Calculator

Find out how Alaska taxes your Social Security, pension, and 401(k) distributions.

Free Alaska retirement income tax calculator. See why Alaska levies zero state tax on Social Security, pensions, and 401(k) or IRA withdrawals, and estimate the federally taxable portion of your Social Security. Runs in your browser.

Does Alaska tax retirement income?

No. Alaska has no state personal income tax of any kind, so Social Security benefits, pensions, annuities, and IRA or 401(k) distributions are all entirely free of state income tax. There is also no Alaska tax on dividends, interest, or capital gains.

The Alaska retirement income tax calculator shows the simplest possible state tax answer for retirees: zero. Alaska has no state income tax, so your Social Security, pension, annuity, and 401(k) or IRA withdrawals are all free of Alaska state tax. This tool confirms that and estimates the federal taxable portion of your Social Security so you can plan your full bill.

How it works

There are two layers to retirement taxation, and Alaska only touches one of them — by not taxing at all.

State layer (Alaska): No income tax. Social Security, pensions, and retirement-account withdrawals are all taxed at $0 by the state.

Federal layer (Social Security): The IRS may tax part of your Social Security based on provisional income:

provisional income = AGI (excluding SS) + tax-exempt interest + 0.5 x Social Security

The taxable share of benefits then depends on your filing status:

  • Single: up to 50% taxable above $25,000 provisional, up to 85% above $34,000.
  • Married filing jointly: up to 50% above $32,000, up to 85% above $44,000.

Pensions and traditional 401(k)/IRA withdrawals are fully taxable federally as ordinary income, but again, Alaska adds nothing.

Worked example

A single retiree with $24,000 of Social Security, a $20,000 pension, and $10,000 of IRA withdrawals:

  • Provisional income: $30,000 (other income) + $12,000 (half of SS) = $42,000
  • Above the $34,000 threshold, so up to 85% of benefits may be taxable federally.
  • Alaska state tax: $0 on every dollar.

Tips and notes

  • No state filing. Alaska has no state income tax return for individuals.
  • Permanent Fund Dividend. Qualifying Alaska residents receive an annual PFD, which is itself federally taxable income but not Alaska-taxed.
  • Plan federally. Your federal bracket, the SS taxability formula, and required minimum distributions still apply — Alaska simply does not add a state layer on top.