Clear Money Guide
What this state guide covers
A quick view of the questions, practical details and source notes below.
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2026 edition · statute-cited · part of Clear Money Guide’s 51-state retirement tax series. This guide covers state taxes on retirement income and estate transfers; property and sales taxes vary by county and are outside its scope.
Updated July 24, 2026. Quick answer: Alaska taxes none of it: no state income tax (so Social Security, pensions, 401(k) and IRA withdrawals all go untaxed), no state sales tax (localities can levy their own), no estate tax, and no inheritance tax — and it is the one state that runs the pipeline backward: the Permanent Fund Dividend pays residents. For pure state-tax mechanics, Alaska is as clean as the no-tax tier gets — what remains worth knowing is the dividend’s current figure and how estates settle.
The dividend (with the current number, which most guides get wrong)
The 2025 PFD was $1,000 per eligible resident (final payment rounds run August–September 2026), and the 2026 amount has not been set as of this writing — announcements come in the fall. Coverage routinely quotes the 2024 dividend ($1,702) or figures a decade older as current. Eligibility requires full calendar-year residency and intent to remain — a new retiree’s first dividend arrives the year after the move.
How Alaska taxes retirement income
| Income tax | None |
| Social Security | Not taxed |
| Pension / 401(k) / IRA | Not taxed |
| Estate / inheritance tax | None |
Settling an estate: the two-bucket affidavit
Alaska is a Uniform Probate Code state — personal-representative and attorney compensation is “reasonable” (AS 13.16.430), with no percentage schedule. Its small-estate affidavit has an unusual two-bucket design (AS 13.16.680): up to $100,000 of motor vehicles plus up to $50,000 of other personal property (net of liens) can pass by affidavit after a 30-day wait, with no personal representative appointed — a structure built for a state where trucks, boats and snowmachines are often the estate. Context: probate cost by state · small-estate limits by state.
Is Alaska a good state to retire in for taxes?
On state taxes, unambiguously yes — nothing on income, nothing at death, and reasonable-fee probate with a practical affidavit lane. The honest caveats sit outside the tax code: cost of living and healthcare access dominate the real retirement math in much of the state, and local sales/property taxes vary widely by borough. Retirees comparing no-tax states should weigh those practicalities — the tax code itself won’t be the tiebreaker.
Alaska vs. common alternatives
| State | Social Security | Pension / 401(k) / IRA | Estate tax | Inheritance tax |
|---|---|---|---|---|
| Alaska | Not taxed | Not taxed (no income tax) | None | None |
| Washington | Not taxed | Not taxed (no income tax) | Yes — $3M exclusion, top rate 35% | None |
| Nevada | Not taxed | Not taxed (no income tax) | None | None |
| Florida | Not taxed | Not taxed (no income tax) | None | None |
Comparison rows summarize general rules; see our 51-state retirement tax table for statute-cited detail.
Considering a Roth conversion? The converted amount is taxed as ordinary income in the year you convert, and Alaska may treat it differently from the retirement income above — see how all 51 jurisdictions tax Roth conversions.
Finding a financial advisor in Alaska
Per the SEC’s July 2026 Investment Adviser roster, Alaska has 9 SEC-registered advisory firms (#51 nationally) managing $8.8 billion (#51 by AUM). Full breakdown: Alaska advisor statistics. Reviewing fee structures: fee-drag calculator.
What probate costs in Alaska
Alaska sets probate compensation by a “reasonable fee” standard with no percentage schedule, so anyone quoting a firm figure is estimating. And the small-estate shortcut of $100,000 does not clear a solely owned house on its own, which is the detail most guidance omits. Full detail with the governing statute, the court filing fee and the threshold: Alaska probate cost. To price a specific estate, use the probate cost calculator.
Cite or share this guide
Suggested citation: Clear Money Guide, “Alaska Retirement Taxes (2026 edition),” statute-cited; clearmoneyguide.com/alaska-retirement-taxes/. Free to cite with attribution and a link. Data verified July 23–24, 2026 against state statutes, session laws, and revenue-department guidance.
Primary sources
- https://taxfoundation.org/data/all/state/state-income-tax-rates-2026/
- https://taxfoundation.org/data/all/state/estate-inheritance-taxes/
- https://law.justia.com/codes/alaska/title-13/chapter-16/article-12/section-13-16-680/
- https://public.courts.alaska.gov/web/forms/docs/p-110.pdf
- https://courts.alaska.gov/selfhelp/courtfees.htm