Alaska payroll taxes
Every tax withheld from a Alaska paycheck or paid by the employer in 2026, with rates and wage limits.
Last verified November 2, 2026. Sources: labor.alaska.gov, taxfoundation.org, taxnews.ey.com, oregon.gov.
| Tax | Employee pays | Employer pays | Wage limit |
|---|---|---|---|
| Social Security | 6.2% | 6.2% | $184,500 |
| Medicare | 1.45%* | 1.45% | No limit |
| FUTA | — | 0.6% | $7,000 |
| Alaska SUTA | 0.5% | 1% (new) | $54,200 |
| Unemployment Insurance (employee share) | 0.5% | — | $54,200 |
| Alaska income tax | None | — | — |
*Plus 0.9% Additional Medicare Tax withheld on wages over $200,000. FUTA rate shown is net of the state credit.
State unemployment insurance
Alaska charges new employers 1% on the first $54,200 each employee earns in a year. After a few years, the rate is based on the employer's layoff history and ranges from 1% to 5.4%. Employer range 1.00% (classes 1-20) to 5.40% (class 21). Combined employer+employee range is 1.5%-5.9%. New employer rates vary by industry; the 1.0% here is the class 1-20 standard rate.
Register and file with the Alaska unemployment tax agency.
Paid leave and disability programs
- Unemployment Insurance (employee share): employees pay 0.5% on wages up to $54,200 (maximum $271.00 a year). Alaska is one of three states with employee SUI withholding; 0.50% on first $54,200 (2026). Employer SUI is separate (experience-rated).
Income tax withholding
Alaska does not tax wages, so there is no state income tax withheld from paychecks.
Frequently asked questions
- What payroll taxes do employers pay in Alaska?
- Social Security, Medicare, federal unemployment (FUTA) and Alaska unemployment insurance (SUTA).
- What is the Alaska SUTA wage base for 2026?
- $54,200 per employee.
- Does Alaska require state income tax withholding?
- No. Alaska has no tax on wages.