Alaska Income Tax
Does Alaska Have State Income Tax?
Alaska does not have a state income tax and there is no State of Alaska 1040 tax form issued by the Alaska Department of Revenue. Conversely, every Alaskan resident receives a payment annually from the State of Alaska Permanent Fund Dividend. Alaska state and local governments generate revenue primarily from sales tax, property tax, hotel occupancy, raw fish, oil and gas taxes. Residents of Alaska must still file federal income tax forms each year.
Alaska 1040 tax form?
Alaska does not have a state 1040 tax form, however, residents living in the state of Alaska may still need to file a Form 1040 or Form 1040-SR federal income tax return each year. The deadline for filing a federal form 1040 return for the 2023 tax year is April 15, 2024.
How can Alaska have no state income tax?
The Alaska state constitution prohibits the creation of a personal income tax on wages. Alaska statutes regarding income tax law also restate that no income tax will be levied upon residents and citizens of the state. Alaska state and local governments generate revenue elsewhere primarily from property tax, sales tax, hotel occupancy, raw fish, oil and gas taxes.
How long do you have to live in Alaska to avoid taxes?
Residency for tax purposes is demonstrated by whether or not an individual has taken steps to move into Alaska, and, sever residency in a previous state or country. You may still need to file a full-year, part-year, or non-resident income tax return in your current state for the year you move to Alaska.
If you are considering moving to Alaska, remember that personal income taxes are just part of the overall tax burden. In the state of Alaska, however, the overall cost of living is relatively low compared to other high tax states such as California, New Jersey, and New York.
How many states have no income tax?
Alaska is one of nine states which do not levy a personal income tax on wages. Currently the no personal income tax states are Alaska, Florida , Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming.
For more information please visit the Alaska Department of Revenue website.
Last updated: December 10, 2023
References:
- The Great State of Alaska. State of Alaska. Retrieved December 10, 2023.
- Alaska Tax Facts. State of Alaska, Alaska Department of Revenue. Retrieved December 10, 2023.
- Permanent Fund Dividend, Eligibility, Establishing Residency. State of Alaska, Alaska Department of Revenue. Retrieved December 10, 2023.