Alaska paychecks in 2026: what changed
Alaska still has no state income tax in 2026. At state level, the minimum wage rose on July 1 and the unemployment wage base went up.
The changes
- New federal withholding tables. The IRS updated Publication 15-T for 2026, including changes from the 2025 tax law. The standard deduction is $16,100 single, $32,200 married filing jointly, and $24,150 head of household.
- Social Security wage base: $184,500 (up from $176,100). If you earn more, Social Security stops later in the year.
- Tips and overtime deductions for 2025–2028 — see below.
- Alaska minimum wage: $14.00 from July 1, 2026; $15.00 is due on July 1, 2027.
- Employee unemployment contribution: 0.5% on the first $54,200 of taxable wages (the base was $51,700 in 2025).
Tips and overtime in 2026
New federal deductions apply for 2025 through 2028: up to $25,000 for qualified tips, and up to $12,500 ($25,000 for joint filers) for the extra "half" of time-and-a-half overtime. Both phase out above $150,000 of income ($300,000 joint).
These are deductions on your tax return. Your employer still takes Social Security and Medicare out of tips and overtime, and still withholds income tax unless you tell it otherwise. If you expect to claim them, you can put the expected amount in Step 4(b) of your W-4 (and in the Step 4(b) box above) so less income tax is withheld during the year.
Work out your 2026 Alaska paycheck →
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Sources
- IRS Publication 15-T (2026), Federal Income Tax Withholding Methods — Worksheet 1A and the annual percentage-method tables
- IRS Publication 15 (2026), Employer's Tax Guide — Social Security and Medicare rates
- Social Security Administration — 2026 wage base of $184,500
- IRS — tips and overtime deductions
- Alaska Office of the State Assessor — Alaska tax facts — there is no personal state income tax
- Alaska Employment Security Tax — 2026 rates — employee rate 0.50%; taxable wage base $54,200
- Alaska Employment Security Tax — Employer handbook — retirement deferrals and most cafeteria-plan benefits are not taxable wages
- Alaska Department of Labor — Wage and Hour — $14.00 from July 1, 2026
- Alaska Ballot Measure 1 FAQ — $14.00 July 1, 2026; $15.00 July 1, 2027; paid sick leave
- Alaska Wage and Hour Act — Pamphlet 100 — no tip credit; daily overtime; paydays and final pay (AS 23.05.140)