What it costs to live and work in Alaska: the minimum wage, state income tax, sales tax and median rent, from official sources, and what they mean for your monthly budget.
| Alaska | Source | |
|---|---|---|
| Minimum wage | $14.00 an hour | Alaska Department of Labor and Workforce Development: minimum wage news release |
| State income tax | none | Tax Foundation: State Individual Income Tax Rates and Brackets, 2026 (rates as of January 1, 2026) |
| State sales tax | none | Tax Foundation: State and Local Sales Tax Rates, Midyear 2026 |
| Median gross rent | $1,444 a month (2024) | US Census Bureau, American Community Survey 2024 1-year estimates, table B25064 (Median Gross Rent) |
The minimum wage is $14.00 an hour since July 1, 2026, and rises to $15.00 on July 1, 2027.
Alaska has no personal income tax.
There is no state sales tax, but some local governments levy one: 1.82 % on average, up to 7.85 %.
What income does rent in Alaska take?
A common rule of thumb is to keep rent at or below 30 % of gross income. At the median rent of $1,444 a month, that means a household income of about $57,800 a year before tax.
Good to know
- From January 1, 2028 the minimum wage is adjusted for inflation each year.
Sources
- US Department of Labor, Wage and Hour Division: State Minimum Wage Laws (2026-07-01)
- Tax Foundation: State Individual Income Tax Rates and Brackets, 2026 (rates as of January 1, 2026) (2026-02-19)
- Tax Foundation: State and Local Sales Tax Rates, Midyear 2026 (2026-07-06)
- US Census Bureau, American Community Survey 2024 1-year estimates, table B25064 (Median Gross Rent) (2025-09)
- Alaska Department of Labor and Workforce Development: minimum wage news release (2026-06-01)