Alaska · 401(k) Contribution
401(k) Contribution in Alaska (2026)
Pre-tax 401(k) contributions reduce 2026 taxable wages up to the $24,500 employee deferral limit, with catch-up rules for eligible older workers. Alaska has no state income tax, so a Alaska filer's combined marginal rate on the next dollar at $80,287 of income is about 22% (22% federal).
2026 savings example for Alaska
Planning estimate for a single filer earning $80,287 (Alaska median household income in LevyIO's state dataset) who removes $5,000 from taxable income. Federal tax uses the 2026 IRS brackets after the $16,100 standard deduction; AK tax uses the state brackets in LevyIO's dataset.
Estimated total savings
$1,100
Federal savings
$1,100
$8,833 → $7,733 · 22% bracket
AK state savings
$0
No state income tax
Combined marginal rate
22%
≈ $220 saved per $1,000 deducted
Statutory maximum for this item in LevyIO's dataset: $24,500.
Federal × Alaska marginal rates (2026, single)
Gross-income ranges include the federal standard deduction. The AK column is the state marginal rate at the midpoint of each range (Alaska has no income tax). The last column is the tax saved per $1,000 deducted at that combined rate.
| Federal bracket | Gross income (single) | AK marginal | Combined | Per $1,000 |
|---|---|---|---|---|
| 10% | $16,100 - $28,500 | 0% | 10% | $100 |
| 12% | $28,500 - $66,500 | 0% | 12% | $120 |
| 22% | $66,500 - $121,800 | 0% | 22% | $220 |
| 24% | $121,800 - $217,875 | 0% | 24% | $240 |
| 32% | $217,875 - $272,325 | 0% | 32% | $320 |
| 35% | $272,325 - $656,700 | 0% | 35% | $350 |
| 37% | Over $656,700 | 0% | 37% | $370 |
Eligibility & forms
Employees with employer-sponsored 401(k) plans
- $24,500 employee elective deferral limit for 2026
- $32,500 total if age 50+ with regular catch-up
- $35,750 total if age 60-63 and the plan allows the higher catch-up
- Pre-tax contributions reduce taxable wages; Roth 401(k) contributions do not
Federal forms: W-2
Alaska filing notes
No state income or sales tax offers one of the lowest tax burdens nationally. The annual PFD is taxable on your federal return. If you work remotely for an out-of-state employer, you may owe income tax in that state.
Common mistakes: Not maximizing employer match; Over-contributing across multiple plans; Treating Roth 401(k) contributions as a current-year deduction; Ignoring payroll year-to-date deferrals after changing jobs.
Frequently asked questions
How much can the 401(k) Contribution save a Alaska taxpayer in 2026?
In LevyIO's example, a single filer with $80,287 of income (the Alaska median household income in our state dataset) who removes $5,000 from taxable income saves about $1,100 in 2026 federal tax (22% marginal bracket) and nothing at the state level because Alaska does not tax wage income. It is a planning estimate computed from the 2026 IRS brackets and LevyIO's AK bracket data, not a survey figure.
What is the Alaska income tax rate for 2026?
Alaska has no state income tax. The AK standard deduction in LevyIO's dataset is $5,900 single / $11,800 married. No state income tax. Annual Permanent Fund Dividend (~$1,312). No state sales tax.
Who qualifies for the 401(k) Contribution in Alaska?
Employees with employer-sponsored 401(k) plans. The federal rules are the same in every state; the requirements are: $24,500 employee elective deferral limit for 2026; $32,500 total if age 50+ with regular catch-up; $35,750 total if age 60-63 and the plan allows the higher catch-up; Pre-tax contributions reduce taxable wages; Roth 401(k) contributions do not. Alaska filers should confirm on the AK return whether the state follows the federal treatment.
Which forms do I file to claim the 401(k) Contribution?
Federal: W-2. Alaska has no individual income tax return for wage income, so there is no state form to file for this item. Common mistakes: Not maximizing employer match; Over-contributing across multiple plans; Treating Roth 401(k) contributions as a current-year deduction; Ignoring payroll year-to-date deferrals after changing jobs.
401(k) Contribution in other states
Sources
Reviewed 2026-09-17. Estimates are educational planning figures computed from the IRS 2026 inflation adjustments and LevyIO's state bracket dataset; they are not tax advice.