Alaska variant. This is a Alaska-specific version of the Payroll Tax Estimator (Flat Rate), using pre-defined local figures (tax rates, median home and income values, and typical regional costs). For the full formula, methodology, and FAQ, open the main Payroll Tax Estimator (Flat Rate).
Alaska employers owe federal payroll taxes (Social Security, Medicare, FUTA) plus state obligations (state unemployment only - no state income tax withholding).
Payroll tax obligations in Alaska
Employers match the 6.2% Social Security and 1.45% Medicare withheld from employees, and pay FUTA (0.6% on the first $7,000 after credits) plus state unemployment insurance.
Alaska has no state income tax, so you don't withhold state income tax - but you still pay state unemployment.
About taxes and housing in Alaska
Alaska levies no state income tax and no statewide sales tax, relying heavily on oil and natural resource revenue.
Property taxes are levied only by local boroughs and municipalities, so many remote areas of Alaska have no property tax at all.
Alaska's economy is anchored by oil, fishing, and tourism, and residents receive an annual Permanent Fund Dividend from oil revenue investments.
Worked example: employer cost on $89,336
On a $89,336 salary, the employer's FICA match alone is 7.65% = $6,834, before FUTA and Alaska unemployment insurance.
Quick reference
- State income tax: No state income tax
- State sales tax: 0% (plus 1.82% avg local)
- Median home value: $365,000
- Median household income: $89,336
- Effective property tax rate: 1.04%
- Avg auto insurance: $1,265/yr
Frequently Asked Questions
What payroll taxes do Alaska employers pay?
Employer FICA match (7.65%), FUTA, state unemployment, and no state income tax withholding.
What is the employer FICA match?
Employers match 6.2% Social Security + 1.45% Medicare = 7.65% of wages.