Alaska retirement taxes at a glance (2026)
| State income tax | No state income taxAlaska has no state income tax. |
|---|---|
| Social Security | Not taxedAlaska has no income tax, so Social Security is not taxed. |
| Pensions | Not taxedPensions are not taxed because Alaska has no income tax. |
| 401(k) and IRA withdrawals | Not taxedIRA and 401(k) withdrawals are not taxed because Alaska has no income tax. |
| Government pensions | Not taxedGovernment pensions are not taxed because Alaska has no income tax. |
| Military retirement pay | Not taxedMilitary retirement pay is not taxed because Alaska has no income tax. |
| Estate tax | No |
| Inheritance tax | No |
| Property tax help for seniors | A mandatory exemption covers the first $150,000 of assessed value of the primary home of residents age 65 or older. |
| Sales tax | No statewide sales tax; 107 municipalities levy local sales tax of 1% to 7% (average about 1.82%). |
How to lower your retirement taxes in Alaska
- Mix your income sources. Roth IRA withdrawals are tax-free at the federal level and generally in Alaska too, so a Roth conversion before retirement can cut state tax later. Try the Roth conversion calculator.
- Watch federal Medicare costs. Large IRA withdrawals can raise your Medicare premiums. Check the 2026 IRMAA brackets.
- Think about your heirs. See what your IRA will really cost your family with the Family Tax Rate calculator.
- Comparing states? These have no state income tax: Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, Wyoming.
Frequently asked questions
Does Alaska tax retirement income?
No: Alaska has no income tax, so no retirement income is taxed.
Does Alaska tax Social Security?
Alaska has no income tax, so Social Security is not taxed.
Does Alaska tax pensions?
Pensions are not taxed because Alaska has no income tax.
Does Alaska tax 401(k) and IRA withdrawals?
IRA and 401(k) withdrawals are not taxed because Alaska has no income tax.
Does Alaska tax military retirement pay?
Military retirement pay is not taxed because Alaska has no income tax.
Sources (last verified 2026)
- Alaska State Taxes: 2026 Tax Season — AARP (2026-05-21)
Educational content only, not tax, legal or investment advice. Plans and tax laws change; confirm details with your employer's plan documents or your state revenue department. Smart Financial Lifestyle is not affiliated with any employer named on this site.