Bonus Tax in Alaska (2026)

A bonus is supplemental pay, and it is usually withheld at a flat federal rate rather than your normal bracket. Employers apply 22% to supplemental wages up to a yearly threshold, and a higher rate on the part above it. FICA comes out on top, and then the Alaska state layer applies.

Alaska levies no state income tax, so only the federal 22% supplemental withholding and FICA come out of a bonus. Alaska levies no personal income tax on wages and has no statewide sales tax; residents also receive an annual Permanent Fund Dividend. The only employee-side statutory payroll deduction is the Unemployment Insurance contribution.

Alaska takes no state tax from a bonus, but the employee Unemployment Insurance contribution still applies to it until you reach the yearly wage cap.

Worked example: a $5,000 bonus in Alaska

Federal withholding (22%)$1,100
FICA (Social Security + Medicare)$383
Alaska withholding$0
Total withheld$1,483
You keep about$3,517

Assumes year-to-date wages under the $184,500 Social Security wage base. Withholding, not final tax — it reconciles on your return.

Bonus tax calculator (2026)

Federal withholding (flat 22%)$1,100
FICA (Social Security + Medicare)$383
Alaska withholding$0
You keep about$3,517

Assumes your year-to-date wages are under the $184,500 Social Security wage base. Withholding, not your final tax — it reconciles on your return.

See what your regular paycheck keeps in Alaska: Alaska paycheck calculator.

Frequently asked questions

Why is my bonus taxed so high?

What you see is withholding, not your final tax. Federal rules withhold supplemental pay like a bonus at a flat 22%, which is often more than your normal rate, so the bonus looks heavily taxed. It squares up when you file, where your real rate is applied to your total income.

Does Alaska have a flat bonus withholding rate?

It depends on the state. The breakdown above shows Alaska's supplemental rate if it has one, or notes when the aggregate method applies instead.

Federal: IRS 2026 brackets (Rev. Proc. 2025-32) · FICA: IRS Topic 751 · Wage base: SSA · Alaska: Alaska Department of Labor - Employment Security Tax (2026 rates). Rates current as of July 16, 2026. Annual-liability estimates, not payroll withholding — see methodology.