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Does Alaska Tax Out-of-State Pensions? (2026)

Updated October 7, 2026. Quick answer: No. The Alaska Department of Revenue Tax Division states that “The State of Alaska currently does not have an individual income tax”. A pension from another state is therefore not taxed by Alaska, and a pension earned in Alaska is not taxed by Alaska after a move.

Federal civil service pensions in Alaska: does Alaska tax federal pensions.

How Alaska treats a pension earned elsewhere

ItemWhat the state documents say
NonresidentsAlaska’s own documents describe no individual income tax, so there is no state income tax on a nonresident’s pension. The Tax Division says the state does not have an individual income tax. The federal rule in 4 U.S.C. 114 separately bars states from taxing a nonresident’s retirement income.
Residents with a pension earned elsewhereThe Tax Division states that Alaska does not have an individual income tax. The source reviewed contains no pension-specific exclusion because there is no tax to exclude it from. The same page notes that no employee withholding for state income tax is required.
Part-year residents (year of a move)No Alaska individual income tax applies in the year of a move, because the Tax Division says the state does not have one. The source reviewed describes no part-year income tax return. Income received in the year of a move is not apportioned or taxed by Alaska.
RateAlaska prints no individual income tax rate or schedule for 2025. The Tax Division states that the state does not have an individual income tax.
Return to fileNo Alaska individual income tax return is described in the source reviewed.

A $40,000 move-year example

A retiree receives $40,000 of pension in the year of a move: $20,000 before the move date, as an Alaska resident, and $20,000 after leaving.

Alaska levies no personal income tax, so the $40,000 is not taxed by Alaska whether it was paid before or after the move: $0 on $40,000. Federal tax still applies.

The federal rule that protects a nonresident

4 U.S.C. 114(a) bars a state income tax on retirement income of an individual “who is not a resident or domiciliary of such State”. Retirement income means any income from a qualified retirement plan, a simplified employee pension, a 403(a) or 403(b) plan, an individual retirement plan, an eligible 457 plan or a governmental plan. Income from a nonqualified deferred compensation plan counts only if it is part of a “series of substantially equal periodic payments” made for life or for a period of at least 10 years, or is a payment after termination of employment from a plan that exists only to provide benefits above the Internal Revenue Code limits, so not every payment is covered. Retired pay of a member of a uniform service is also covered.

Related: how Alaska taxes retirement income, whether Alaska taxes pensions, out-of-state pension tax by state, and deferred compensation lump sums after a move.

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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 preparer, the plan administrator or the agency itself is the right place to confirm anything consequential.

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