Alaska Wage and Payroll Tax Facts

February 01, 2024

Having to comply with unique state taxes and wage laws can make processing payroll doubly daunting. Here’s everything you need to know about these rates and laws for the state of Alaska.

Alaska uses a moderately higher minimum wage rate than the one required by the federal government in the Fair Labor Standards Act (FLSA). However, The Last Frontier doesn't allow for tip credits or tipped minimum wage rates based on such credits. 
When it comes to processing payroll, Alaska-based organizations must handle the following taxes in addition to those required by the federal government:

The below information was last updated January 30, 2024. It is not intended as legal or tax advice.

Alaska Minimum Wage Rates

Wage Type

Alaska Rates

Federal Rates

Minimum Wage



Tipped Minimum Wage



Actual Tip Credit



Alaska State Income Tax (SIT) Rates

Alaska is one of the few states that doesn't impose or collect a personal income tax.

Alaska State Unemployment Insurance (SUI) Rates

Alaska's SUI tax (a.k.a., Employment Security Tax) provides unemployment benefits to eligible workers who are unemployed through no fault of their own (as determined by state law) and meet the state’s eligibility requirements.

Alaska SUI Tax Details

Taxable Wage Base


Employee Subject to Tax

Yes; a 0.50% tax on wages up to the taxable wage base

Rates for Experienced Employers

1.00% - 5.40%

Rates for New Employers


Effective Period

Calendar Year

Voluntary Contributions Allowed


Alaska State Disability Insurance (SDI) Rates

SDI benefits are funded by employees through mandatory payroll deductions from each paycheck. Alaska, however, doesn't require employers to collect an SDI tax.

Miscellaneous Alaska Tax Information

Reciprocal Agreement(s)

Reciprocal agreements are when workers who live and work in different states are only required to pay taxes to the state where they live. Alaska currently has no reciprocal agreements with any other states.

This doesn’t mean, however, that interstate workers living in Alaska pay double. It’s federally illegal for two states to tax the same income. In most cases, the employee’s work state will credit or refund them at tax time based on the taxes they owe their home state. If the tax rates differ, the employee must cover the difference.

Paid Sick Leave (PSL) Taxes

The state of Alaska doesn’t require employers to collect PSL taxes, nor does the state have a program providing such leave to employees.

Paid Family and Medical Leave (PFML) Taxes

The state of Alaska doesn’t require employers to collect PFML taxes, nor does the state have a program providing such leave to employees.

Alaska Employer Registration

The Department of Labor and Workforce Development can help with your state-based employer registration, including best practices, account numbers, and unemployment information.

Registration Details

Department of Labor & Workforce Development


(907) 465-2757

Online Registration

MyAlaska Registration Page
Registration Form Form TREG

Registration Instructions

Online and paper registration options are available. Account numbers will be issued in 5 days.

Employer Self-Service Login

MyAlaska Login Page

Additional Alaska Payroll Tax Resources


This information is provided as a courtesy and may be updated at any time. It is not intended as legal or tax guidance. If you have questions or concerns, we encourage you to seek the advice of a qualified CPA, tax attorney, or advisor.


Get Taxes Done Right, Without the Stress

We know there's a lot that goes into preparing and filing payroll tax forms. Save time and get support from our expert team. As a Registered Reporting Agent with the IRS, we can help prepare and file all the necessary forms you need to remain compliant - even in the face of changing legislation. Learn more here.

Payroll Tax Services