The Alaska bonus tax calculator at the top of this page helps employers quickly estimate employee take-home pay (also known as net pay) for bonuses.
Behind the numbers
Behind the numbers
Updated: July 28, 2025
Does Alaska tax bonuses?
No. Alaska doesn’t have a personal income tax, so bonuses aren’t subject to state withholding. Since there’s no general income tax withholding law for private employers, there are no special rules for taxing supplemental wages like bonuses.
How to calculate bonus tax in Alaska
Apply the federal flat rate of 22% if the bonus is paid separately. There’s no state income tax to factor in.
What is the bonus tax rate in Alaska?
22% federal only. Alaska doesn’t tax income, so state withholding isn’t required.
How can employers in Alaska pay bonuses to employees?
Bonuses can be issued by:
- Check
- Direct deposit
- Pay card
How do bonuses work in Alaska?
Bonuses are paid and reported like any other compensation. Employers report them on Form W-2 and withhold federal taxes but not state tax.
Why are bonuses taxed differently than standard pay?
They aren’t for the state of Alaska’s purposes — but federally, the IRS considers bonuses “supplemental wages” and applies a flat 22% withholding rate when paid separately from regular wages.
How much tax is taken out of a bonus in Alaska?
Only federal tax applies. For example, if you give an employee a $5,000 bonus, $1,100 would be withheld for federal taxes — and $0 for Alaska, since there’s no state income tax.