Updated October 16, 2026. Quick answer: Alaska does not tax 403(b) or 457(b) withdrawals at the state level: the Department of Revenue says “The State of Alaska currently does not have an individual income tax”.
Alaska at a glance
| Item | What the documents say |
|---|---|
| How the state treats 403(b) and 457(b) withdrawals | No state individual income tax |
| Do the state’s documents name these plans? | The documents read name neither 403(b) nor 457(b) plans |
| Retirement exclusion or credit | Not needed; there is no state individual income tax |
| Public-employee pension rule | Not applicable |
| Rate in the documents read | No state individual income tax |
| Changed for 2026? | The documents read describe no change |
What the Alaska documents say
The Alaska Department of Revenue’s Tax Division page on personal income says the state has no individual income tax. The page does not name 403(b) or 457(b) plans; the answer is that there is no state income tax to apply to them.
Federal income tax on the same withdrawals is a separate question, covered on CMG’s pages on the federal rules.
Withholding and federal tax
Whether a state withholds is a separate rule: see state withholding on retirement withdrawals. Federal rules: 403(b) withdrawal rules and 457(b) withdrawal rules. The IRS says pension and annuity payments from a qualified employer plan have “all or some portion of the amounts you receive may be taxable”.
What the documents do not say
- The Department page read does not name 403(b) or 457(b) plans.
Common mistakes
- Assuming Alaska’s rule for a 401(k) or IRA also covers a 403(b) or 457(b): read whether its documents name the plan.
Related: whether Alaska taxes 401(k) and IRA withdrawals, Alaska retirement taxes, whether Alaska taxes pensions, 403(b) withdrawal rules, 457(b) withdrawal rules, and state withholding on retirement withdrawals.
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Answer againSources
- Personal Income (Tax Types): https://tax.alaska.gov/programs/programs/index.aspx?10001
- IRS Tax Topic 410, Pensions and annuities: https://www.irs.gov/taxtopics/tc410
Sources: the primary documents linked above, read on October 16, 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.