Living on minimum wage · Alaska
Living on Minimum Wage in Alaska
A full-time job at Alaska’s $14.00 minimum wage pays $29,120 a year. After federal taxes that is about $2,124 a month, the 20th-highest take-home of the 51 states and DC (tied).
- Take-home a month $2,124 single, after federal tax
- Take-home a year $25,488 88% of $29,120
- Real hourly pay $12.25 after tax, of $14.00
- Work for $100 of goods 8.2 hrs incl. 0% sales tax
From gross pay to take-home
| Year | Month | Every 2 weeks | |
|---|---|---|---|
| Gross pay | $29,120 | $2,427 | $1,120 |
| Federal income tax | −$1,404 | −$117 | −$54 |
| Social Security & Medicare | −$2,228 | −$186 | −$86 |
| Take-home | $25,488 | $2,124 | $980 |
Figures assume 40 hours a week for 52 weeks, a single filer and the 2026 standard deduction. Alaska does not tax wages, so this is close to the full take-home figure, before any local taxes. For a different situation, use the take-home pay calculator.
Compared with the federal minimum
A full-time worker in Alaska takes home about $11,562 more a year than someone paid the $7.25 federal minimum, who keeps $13,926. The highest take-home is in District of Columbia, at $32,842. See this state’s rate history and rank on minimum wage in Alaska.
What spending costs in hours of work
There is no sales tax in Anchorage, so $100 of goods costs $100.00. At $12.25 of take-home pay an hour, that takes about 8.2 hours of work, the 14th-shortest of the 51 states and DC.
Rates differ across the state; see sales tax in Alaska for other cities.
Two earners
A couple who both work full-time at minimum wage and file jointly earn $58,240 and take home about $4,248 a month after federal taxes.
How big a mortgage minimum wage supports
Lenders commonly cap housing costs at 28% of gross pay. At this week’s 6.76% 30-year rate, that lets one full-time earner here borrow about $104,652 and a two-earner couple about $209,304, before property tax and insurance. See what a $200,000 mortgage costs month to month.
Minimum wage in Alaska: take-home FAQ
What is take-home pay on minimum wage in Alaska?
Full-time at $14.00 an hour, 40 hours a week for 52 weeks, earns $29,120 a year. After $1,404 of federal income tax and $2,228 of Social Security and Medicare, a single filer takes home about $25,488, or $2,124 a month. Alaska does not tax wages, so this is close to the full take-home figure, before any local taxes.
How much federal tax does a minimum wage worker pay in Alaska?
About $1,404 of federal income tax and $2,228 of Social Security and Medicare, using 2026 brackets and the standard deduction for a single filer. Together that is 12% of gross pay.
How long does a minimum wage worker in Alaska work to buy $100 of goods?
There is no sales tax in Anchorage, so $100 of goods costs $100.00. At a take-home rate of $12.25 an hour, that is about 8.2 hours of work, the 14th-shortest of the 51 states and DC.
Can you afford a mortgage on minimum wage in Alaska?
Keeping principal and interest to 28% of gross pay at this week’s 6.76% 30-year rate, one full-time minimum wage earner could borrow about $104,652. Two full-time earners could borrow about $209,304, before property tax and insurance.
2026 state minimum wage, 2026 federal brackets for a single filer with the standard deduction, and Social Security and Medicare at 7.65%. State and local income taxes are not included ; this state does not tax wages. Sales tax is the combined rate for one downtown ZIP code in Anchorage.
Data: U.S. Department of Labor; Internal Revenue Service; State departments of revenue, via APIVerve. Our tables, charts and text are licensed CC BY-NC 4.0: share and adapt them for non-commercial use as long as you credit us. For commercial use or bulk data, use the APIVerve API. See the data terms. Cite as: Digest Your Finances, “Living on Minimum Wage by State”, https://digestyourfinances.com/studies/living-on-minimum-wage/alaska/ — based on U.S. Department of Labor; Internal Revenue Service; State departments of revenue. CC BY-NC 4.0.
