Alaska Self-Employment Tax Calculator

Calculate your self-employment tax, federal income tax, and Alaska state income tax as a freelancer or 1099 contractor. Alaska has no state income tax, meaning your entire salary is free from state-level taxation.

Annual Tax Breakdown

1099 Income
$85,000
Business Expenses
-$10,000
Net Profit
$75,000
Net Earnings (92.35%)(SE tax base)
$69,263
Social Security (12.4%)
-$8,589
Medicare (2.9%+)
-$2,009
Total SE Tax
-$10,597
SE Deduction (50%)(reduces income tax)
$5,299
Federal Income Tax
-$6,794
State Income Tax
-$0
Total Tax Owed
$17,391

Summary

Total Income
$75,000
Total Taxes
-$17,391
After-Tax Income
$57,609
Effective Tax Rate(on total income)
23.2%

Quarterly Estimated Payments

Q1 (Jan-Mar)Due April 15
$4,348
Q2 (Apr-May)Due June 15
$4,348
Q3 (Jun-Aug)Due September 15
$4,348
Q4 (Sep-Dec)Due January 15 (next year)
$4,348
Each Quarterly Payment
$4,348

Tax Breakdown

See your complete freelancer financial picture

Your estimated quarterly tax payment is $4,348. Model your freelance income alongside expenses, savings, and investments in the full simulator.

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Alaska Tax Overview for Freelancers

Alaska has no state income tax, meaning your entire salary is free from state-level taxation. Alaska also has no state sales tax. Self-employed individuals in Alaska pay federal self-employment tax (15.3%) plus federal income tax, and no state income tax — giving Alaska freelancers a significant advantage.

No state income taxNo state sales taxPermanent Fund Dividend (annual payment to residents)Higher cost of goods due to remote location

Self-Employment Taxes in Alaska

If you work as a freelancer or independent contractor in Alaska, your tax situation involves multiple layers: federal self-employment tax, federal income tax, and Alaska state income tax. Understanding how each component works helps you plan your quarterly estimated payments and maximize your deductions.

Alaska Income Tax for Freelancers

Alaska has no state income tax, meaning your entire salary is free from state-level taxation. Alaska also has no state sales tax.

Cost of Living for Freelancers in Alaska

Alaska's cost of living is approximately 24% above the national average, driven by high food, energy, and transportation costs. As a freelancer in Alaska, your effective earnings depend not just on your tax rate but also on what your after-tax income can buy. Consider local costs for housing, coworking spaces, and daily expenses when setting your rates.

Financial Tips for Alaska Freelancers

  • With no state income tax, Alaska residents keep more of their paycheck than most Americans
  • Alaska's Permanent Fund Dividend provides an annual payment to residents — factor this into your financial plan
  • Alaska has a higher cost of living due to its remote location — budget accordingly
  • Consider investing your state tax savings into retirement accounts for maximum growth

Key Alaska Tax Features

  • No state income tax
  • No state sales tax
  • Permanent Fund Dividend (annual payment to residents)
  • Higher cost of goods due to remote location

Model Your Alaska Freelance Finances Over Time

This calculator shows your Alaska tax bill. Trajectoryy's full simulator models your freelance income alongside expenses, savings, investments, and more — month by month for years into the future.

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Frequently Asked Questions

How is self-employment tax calculated in Alaska?
Alaska has no state income tax, so self-employed workers in Alaska only pay federal self-employment tax (15.3% on 92.35% of net earnings) and federal income tax. This makes Alaska one of the most favorable states for freelancers and 1099 contractors.
How much will I owe in quarterly taxes as a freelancer in Alaska?
Your quarterly estimated tax payment in Alaska depends on your total tax liability — including SE tax, federal income tax, and no state income tax (since Alaska has none). Use the calculator above to estimate your quarterly payments. As a general rule, freelancers should set aside 25-35% of their net income for taxes.
What business deductions are available for Alaska freelancers?
Freelancers in Alaska can deduct the same federal business expenses as in any state: home office, equipment, software, health insurance, vehicle expenses, and more. Since Alaska has no state income tax, deductions only reduce your federal tax liability.
Does Alaska have any special taxes for self-employed workers?
No. Alaska has no state income tax and no additional self-employment taxes. You only need to worry about federal self-employment tax and federal income tax.
Should I form an LLC or S-Corp as a freelancer in Alaska?
The decision to form an LLC or S-Corp in Alaska depends on your income level. Generally, if your net self-employment income exceeds $50,000-$60,000, an S-Corp election may save you money by allowing you to pay yourself a reasonable salary (subject to FICA/Medicare) while taking the rest as distributions (not subject to SE tax). Consult a Alaska tax professional for advice specific to your situation.

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