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Does Alaska Tax TSP Withdrawals? (2026)

Updated October 7, 2026. Quick answer: No. The Alaska Department of Revenue’s Tax Division says the state “currently does not have an individual income tax”, so a TSP withdrawal by an Alaska resident is not taxed by the state.

Alaska TSP withdrawal tax treatment at a glance

ItemWhat the documents say
TSP withdrawalsNot taxed by Alaska: the documents read describe no individual income tax that applies to a withdrawal
FERS annuityThe documents read do not treat a FERS annuity differently from a TSP withdrawal; with no individual income tax, neither is taxed by Alaska
Rate or limit printedNo rate: no individual income tax
Where it is reportedNothing to report on a Alaska return
SourceAlaska Department of Revenue, Tax Division

What the Alaska documents say

The Tax Division’s Personal Income page says the state “currently does not have an individual income tax”, and adds that “no employee withholding for state income tax is required”.

The page does not name the Thrift Savings Plan or a retirement withdrawal. The conclusion for a TSP withdrawal follows from the absence of any individual income tax.

A worked example at $30,000 of withdrawals

An illustration, not a return: a Alaska resident who takes $30,000 from the TSP in 2026 owes $0 of Alaska individual income tax on it, on the documents read. Federal income tax still applies and is outside this page.

If you moved to Alaska or left it

The rules above are Alaska’s own, for a resident. Federal law limits what a state you have left may do: “No State may impose an income tax on any retirement income” of someone who is not a resident or domiciliary of that state, as 4 U.S.C. 114(a) puts it. The statute defines retirement income by reference to plans described in the Internal Revenue Code; this page does not decide whether a particular TSP payment meets that definition. If you moved during the year, check each state’s page and return. See CMG’s TSP withdrawal options and FERS, TSP and Social Security sequencing pages for the federal side.

What changes in 2026

The documents read for Alaska announce no change for 2026 that is specific to TSP withdrawals. The instructions read are for tax year 2025, the newest archived; check the state agency for the 2026 forms when they are published.

What the documents do not say

  • The Tax Division’s page does not name retirement income or the TSP.

Common mistakes

  • Assuming the absence of a Alaska income tax removes the federal tax on a TSP withdrawal; it does not.
  • Assuming the answer for one state applies to another, or that the state answer changes the federal tax on the withdrawal.

Related: TSP withdrawal options, state tax on TSP withdrawals, Alaska retirement taxes, how Alaska taxes pensions, and how Alaska taxes 401(k) and IRA withdrawals.

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Sources

Sources: the primary documents linked above, read on October 7, 2026. General information, not tax advice. Your own facts decide the outcome, and a tax professional or the state agency itself is the right place to confirm anything consequential.

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