2025 Tax Year

Alaska Side Hustle Tax Calculator

Alaska has no state income tax. Calculate your federal self-employment tax instantly.

AKNo state tax

733,000 residents

No signup required

2025 rates

Always free

Last updated: January 2026 · Data from IRS Rev Proc 2024-40

Filing Status

State

W-2 Income (from your day job)

Side Hustle Income *

Business Expenses (optional)

Great news for Alaska side hustlers: The Last Frontier has no state income tax. Whether you're driving for rideshare in Anchorage, running a fishing charter in Juneau, or freelancing from Fairbanks, you won't owe any state income tax on your earnings. Even better, Alaska residents may receive an annual Permanent Fund Dividend (PFD) from the state's oil wealth.

Alaska Tax Guide

How Side Hustle Taxes Work in Alaska

Alaska is one of nine states with no state income tax, making it one of the most tax-friendly states for side hustlers.

What Alaska side hustlers DO pay: - **Federal self-employment tax**: 15.3% (12.4% Social Security + 2.9% Medicare) - **Federal income tax**: 10% to 37% based on your total income - **Alaska state income tax**: $0

**Permanent Fund Dividend (PFD):** - Alaska residents may receive an annual dividend from oil revenues - The 2024 PFD was $1,312 per eligible resident - This can help offset federal taxes on your side hustle

Example

What Alaska Side Hustlers Owe

Let's say you're a single filer in Anchorage with a $50,000 W-2 job and $15,000 in side hustle income from freelance photography, with $2,000 in business expenses.

**Your estimated taxes on the side hustle:** - Net self-employment income: $13,000 - Federal SE tax (15.3% of 92.35%): ~$1,839 - Federal income tax on side income: ~$2,860 (22% bracket) - Alaska state tax: $0 - **Total additional tax: ~$4,699**

Compare this to California where you'd owe an additional ~$1,209 in state taxes. Alaska residents keep more of their side hustle earnings.

Important Dates

Alaska Tax Deadlines 2025

Since Alaska has no state income tax, you only need to worry about federal deadlines: - **Q1**: April 15, 2025 - **Q2**: June 16, 2025 - **Q3**: September 15, 2025 - **Q4**: January 15, 2026

Use IRS Form 1040-ES for federal quarterly estimated payments.

Save Money

Common Deductions for Alaska Freelancers

Even without state income tax, maximizing federal deductions saves Alaska side hustlers money: - Home office deduction (simplified: $5/sq ft up to 300 sq ft) - Vehicle expenses (67 cents/mile for 2025) - Equipment and supplies - Professional services (accounting, legal) - The 20% QBI deduction can significantly reduce your federal tax bill

Common Questions

Alaska Side Hustle Tax FAQ

Does Alaska have income tax on side hustles?

No, Alaska has no state income tax. Your side hustle income is only subject to federal self-employment tax (15.3%) and federal income tax.

Do I need to file Alaska state taxes?

No, since Alaska has no state income tax, there's no state return to file for your side hustle income. You only file federal taxes.

Does the Alaska PFD affect my side hustle taxes?

The Permanent Fund Dividend is taxable as income on your federal return, but it doesn't directly affect your side hustle tax calculation. It's reported separately.

Compare Tax Rates