Updated October 5, 2026. Quick answer: No. The Department of Revenue says “The State of Alaska currently does not have an individual income tax”, so dividends and interest add no Alaska income tax.
How Alaska treats dividends and interest
| Item | What the documents say |
|---|---|
| Treatment | Not taxed by the state |
| Where it is written | Alaska Department of Revenue, Tax Division, Personal Income page |
| Statute | AS 43.20.010, “Tax on individuals, fiduciaries, and corporations.”, is shown as repealed (ch 70 SLA 1975) |
| Municipal bond interest | No rule needed: no income tax applies to it |
A $20,000 example
Dividends and interest of $20,000 add $0 of Alaska income tax. Federal tax on the income still applies.
What changes in 2026
The latest documents read print no 2026 change to the way dividends and interest are taxed.
Federal rules
The state’s treatment sits on top of the federal one. Qualified dividends and ordinary dividends are sorted out on the Form 1099-DIV, as the site explains in Box 1a and 1b: ordinary versus qualified dividends, and interest is reported as covered in 1099-INT Box 1. The IRS explains the federal side in Topic no. 403, Interest Received and Topic no. 404, Dividends.
Related: whether Alaska taxes capital gains, whether Alaska taxes pensions, how Alaska taxes retirement income, dividends and interest tax by state, and how tax-exempt interest is reported.
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Answer againSources
- Alaska Department of Revenue Tax Division, Personal Income: https://tax.alaska.gov/programs/programs/index.aspx?60510
- Alaska Statutes, Title 43, Chapter 20 (Net Income Tax): https://www.akleg.gov/basis/statutes.asp#43.20
Sources: the primary documents linked above, read on October 5, 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.