Payroll tax in Alaska: What employers need to know [Updated 2026]
In this article
As an employer, you have many obligations and responsibilities. Whether you're running a successful small business in Alaska or planning to expand your company to the US's northernmost state, mastering state payroll tax laws is one of those obligations. But that's not all. Employers in the United States are also responsible for dealing with federal income taxes and FICA taxes, including Medicare and Social Security contributions.
Alaska has no state personal income tax and no state sales tax, making it more attractive to employers and employees alike. However, Alaska does have a state unemployment insurance tax, and uniquely, both employers and employees contribute to it.
Regardless of the size of your business, if you have employees in the state of Alaska, you need a clear understanding of state payroll taxes, their rates, who owes what, and the deadlines. In this 2026 guide, we'll review all of that and more.
Alaska state unemployment insurance tax
Unlike many other states, Alaska only has one state payroll tax: the state unemployment insurance tax (SUI). The unemployment tax is collected to fund unemployment benefits for workers who experience job loss due to circumstances beyond their control, such as layoffs. The Alaska Department of Labor and Workforce Development's Employment Security Tax Division is responsible for administering SUI tax at the state level. Business owners can pay taxes, manage their state unemployment tax, and perform other administrative functions via the MyAlaska online portal.
Employers have several obligations when it comes to Alaska SUI. First, they must abide by Alaska's new hire reporting laws, which state that all employers must report new hires within 20 days of the new employee's start date. The government requires employers to submit the following information online:
Employee name, address, and Social Security Number
Employer's federal tax ID number (also known as your EIN)
Employer's name and address
In 2026, the SUI taxable wage base is $54,200 per employee — up from $51,700 in 2025 and significantly higher than just a few years ago. Both employers and employees contribute to Alaska's SUI. The employee contribution rate in 2026 is 0.50% on wages up to the $54,200 cap, which employers are required to withhold from paychecks. The new employer tax rate is 1.99% for employers without an experience rating.
For Alaska employers with an experience rating from the Employment Security Tax Division, the unemployment insurance tax rate for 2026 ranges from 1.00% to 5.40%. The Employment Security Tax Division determines the experience rate each year by reviewing the employer's quarterly payroll reporting history. You'll receive a notice in the mail once a year with crucial information, including your unemployment insurance tax rate, the annual taxable wage base, and the employee tax rate.
In addition to Alaska's unemployment tax, employers must also contribute to federal unemployment taxes per the Federal Unemployment Tax Act (FUTA).
Who pays | Employer and employee |
|---|---|
Tax rate | Employer rate: 1.00% to 5.40% (new employers: 1.99%) Employee rate: 0.50% |
Taxable wage limit | First $54,200 per employee per year (2026) |
Maximum employer tax | $2,926.80 (5.40% × $54,200) |
Navigating payroll tax laws in Alaska can be challenging, but Rippling's payroll compliance software makes it easy. Rippling automatically calculates your taxes — including the employee SUI withholding and the rising wage base — and submits your tax forms and payments for you, monitoring tax laws at the federal and Alaska state levels to ensure full compliance. Rippling PEO takes it a step further: It can register and maintain your state tax accounts for you, automating even more of the payroll tax process.
Payroll tax due dates in Alaska
Alaska employers must pay SUI taxes to the Alaska Department of Labor and Workforce Development on a quarterly basis, along with filing a contribution report. The deadlines are as follows:
First quarter (January-March): Due April 30
Second quarter (April-June): Due July 31
Third quarter (July-September): Due October 31
Fourth quarter (October-December): Due January 31
If one of these dates falls on a weekend or a federal holiday, you must complete your tax filing responsibilities by the following business day.
How to submit payroll taxes in Alaska
We've reviewed what you need to know about Alaska state unemployment insurance tax and the due dates for your payments. Now, you're probably asking: How can I file my taxes in the state of Alaska? We'll cover that below.
Enroll in MyAlaska
The Alaska state government encourages everyone to pay online using its MyAlaska portal. Companies with 50 or more employees are required to complete all payroll-related tasks online. You can send in SUI payroll tax reports using the portal's TaxWeb tool, as well as make payments and complete other tasks. The Department of Labor and Workforce Development has simple online instructions about setting up an account and making payments.
Rippling's full-service payroll software
Looking for a payment option that's even easier than MyAlaska? Rippling's payroll software eliminates all the manual work related to tax filing — including tracking Alaska's annually rising UI wage base and withholding the correct employee contribution. With Rippling, your compliance work is automated, and your federal and Alaska state payroll taxes get filed at the right time with the proper authorities.
Frequently Asked Questions
Are there local tax laws in Alaska?
Yes. While the government of Alaska doesn’t levy state taxes, like an individual income tax or a state sales tax, it does permit municipalities in the Last Frontier to charge their own local taxes. Depending on where they’re located, business owners may need to pay a local sales tax.
What is Alaska's UI wage base and how has it changed?
Alaska’s SUI taxable wage base for 2026 is $54,200 per employee—up from $51,700 in 2025. Alaska’s wage base is one of the highest in the US and increases nearly every year. This means employers must pay UI taxes on a growing portion of each employee’s wages annually. The $54,200 cap applies to both the employer contribution rate and the employee’s 0.50% contribution. Employers should plan for this wage base increase each January and ensure their payroll systems update accordingly.
Does Alaska have a state income tax for employees?
No. Alaska has no state personal income tax, making it one of only nine states in the US that does not tax wage income at the state level. Employers are not required to withhold any state income tax from employee paychecks. Alaska also has no local income taxes and no state disability insurance program. The only state payroll tax in Alaska is the SUI contribution, paid by both the employer and the employee (0.50% employee contribution on wages up to $54,200 in 2026). Employers are still responsible for all federal withholding obligations as required by the IRS.
Disclaimer
Rippling and its affiliates do not provide tax, accounting, or legal advice. This material has been prepared for informational purposes only, and is not intended to provide or be relied on for tax, accounting, or legal advice. You should consult your own tax, accounting, and legal advisors before engaging in any related activities or transactions.
Author
Vanessa Kahkesh
Content Marketing Manager, HR
Vanessa Kahkesh is a content marketer for HR passionate about shaping conversations at the intersection of people, strategy, and workplace culture. At Rippling, she leads the creation of HR-focused content. Vanessa honed her marketing, storytelling, and growth skills through roles in product marketing, community-building, and startup ventures. She worked on the product marketing team at Replit and was the founder of STUDENTpreneurs, a global community platform for student founders. Her multidisciplinary experience — combining narrative, brand, and operations — gives her a unique lens into HR content: she effectively bridges the technical side of HR with the human stories behind them.
Hubs
Explore more
Payroll tax in Tennessee: What employers need to know [Updated 2026]
Managing payroll in Tennessee? Read our 2026 employer's guide on staying compliant with Tennessee payroll tax laws. No state income tax—just unemployment insurance to manage.
Payroll tax in Delaware: What employers need to know [Updated 2026]
Managing payroll in Delaware? Read our 2026 employer's guide on staying compliant with Delaware payroll tax laws, including the SUI wage base increase to $14,500.
Payroll tax in Alabama: What employers need to know [Updated 2026]
Managing payroll in Alabama? Read our 2026 employer's guide on staying compliant with Alabama payroll tax laws, including SUI rates and income tax withholding.
Payroll tax in Idaho: What employers need to know [Updated 2026]
Managing payroll in Idaho? Read our 2026 employer's guide on Idaho payroll taxes, including SUI (1.0% new employer rate, $58,300 wage base) and the 5.8% flat income tax.
Payroll tax in Nevada: What employers need to know [Updated 2026]
Managing payroll in Nevada? Read our 2026 employer's guide on staying compliant with Nevada payroll tax laws, including the UI wage base increase and Modified Business Tax.
Payroll tax in Florida: What employers need to know [Updated 2026]
Managing payroll in Florida? Read our 2026 employer's guide on staying compliant with Florida payroll tax laws, including reemployment tax rates and filing deadlines.
Payroll tax in Washington, DC: What employers need to know [Updated 2026]
Managing payroll in Washington, DC? Read our 2026 employer's guide on staying compliant with DC payroll tax laws, including updated paid family leave rates and income tax brackets.
Safe Harbor 401(k) plan: Pros and cons for employers (2026)
Learn everything you need to know about Safe Harbor 401(k) plans, from benefits and contribution rules to employer advantages and compliance.
See Rippling in action
Increase savings, automate busy work, and make better decisions by managing HR, IT, and Finance in one place.