TakeHome Pay
CalculatorHourlyBonusOvertimeNo Tax on OTNo Tax on TipsOffersIncome %Total CompTax Refund

Alaska Overtime Calculator

Overtime in Alaska is withheld on at your normal federal rate: there is no separate overtime tax rate. Federal law sets overtime at 1.5× your regular hourly rate past 40 hours in a workweek, and those hours face federal income tax, FICA of 7.65%, and no state income tax in 2026, though the federal premium is now deductible when you file.

Is overtime taxed in Alaska?

Overtime pay in Alaska is withheld on like regular wages, at no special rate, and since Alaska has no state income tax, it only faces federal income tax and 7.65% FICA. For 2025-2028 the federal premium, the "half" of time-and-a-half, is also deductible when you file, up to $12,500 ($25,000 married filing jointly). Bigger checks can have more withheld up front because withholding is calculated per paycheck, but that evens out on your tax return. Alaska shares no land border with another state, so there is no cheaper commute across a state line.

See what your overtime hours actually add

Estimated take-home

$59,130 /yr

$2,274 per paycheck · $4,928/moFor $25/hr, 40 + 10 overtime hrs a week · Alaska · single

Take-home 83%Taxes 17%

Calculation breakdown

  • Gross salary$71,500.00
  • Federal income tax−$6,900.00
  • FICA (Social Security & Medicare)−$5,469.75
  • State income tax (Alaska)$0.00
  • Total take-home$59,130.25

Gross includes regular and overtime pay; see detailed inputs for per-paycheck splits.

Estimate based on 2026 federal and Alaska tax rules updated Oct 2026 How we calculate

Your details

More options Deductions & details · optional
Overtime adds $15,168/yr: you keep 77.79% of each overtime dollar.
No tax on overtime: $6,500 of this overtime is the deductible “half”. Claimed on your federal return, that's about $1,280 more back at tax time. See your refund →

What overtime hours are actually worth in Alaska

On top of full-time pay at $25 an hour ($52,000 a year) in Alaska, here is what each extra dollar survives federal tax, no state income tax and FICA in 2026:

Overtime workedGrossAlaska taxYou keepShare kept
5 OT hours a week$9,750None$7,83480.3%
10 OT hours a week$19,500None$15,16877.8%
15 OT hours a week$29,250None$22,02775.3%

Alaska levies no income tax on wages, so this money is exposed only to the 15% federal marginal rate and 7.65% FICA: there is no state layer on top.

How Alaska ranks on overtime hours

Across all 50 states and DC, Alaska ranks 1st for what ten overtime hours a week leaves in 2026, tied with 7 other states that levy no income tax on wages. That is $908 more than the median state ($14,260), and $1,823 more than Oregon, where the same ten overtime hours a week leaves $13,345.

How overtime is taxed in Alaska

Short answer: no: overtime is not taxed at a higher rate, and Alaska takes no income tax at all. At $25 an hour, ten overtime hours a week are worth $15,168 a year here, $1,823 more than the same hours would leave in Oregon. Big overtime checks can be over-withheld because withholding is calculated per paycheck; that evens out on your return. Here's the full picture. Alaska is not alone: Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas and Wyoming leave exactly the same $15,168.

  • Overtime rate is 1.5× your regular pay: Federal law requires at least 1.5 times your regular hourly rate for hours worked beyond 40 in a workweek. Alaska also requires daily overtime: 1.5× pay after 8 hours in a single workday.
  • Withheld as ordinary income: federal only: There is no special tax rate for overtime pay. It's added to your regular wages and withheld on in the same federal brackets, and since Alaska has no income tax, only federal tax and FICA apply.
  • The premium is deductible federally (2025-2028): When you file, the extra half of time-and-a-half the FLSA requires comes off your federal taxable income: up to $12,500, or $25,000 married filing jointly, phasing out above $150,000 of income. Social Security and Medicare still apply.
  • Higher income can mean higher withholding: Because overtime increases your total paycheck, your employer annualizes the higher amount when calculating withholding, which can result in a higher rate on the overtime portion.
  • You always take home more by working overtime: Even in a high tax bracket, you keep more than 50% of each overtime dollar. Higher taxes on overtime never mean you'd be better off working fewer hours.

Enter your hourly rate and overtime hours below to see your exact Alaska take-home pay after all taxes.

Frequently Asked Questions

As ordinary wages on your paycheck: there is no special overtime rate, and no Alaska income tax to add. At $25 an hour full time, ten overtime hours a week add $19,500 gross and $15,168 after withholding, so you keep 77.8% of every overtime dollar. Big overtime weeks can be over-withheld because withholding is per paycheck; that evens out when you file.

Not fully. For 2025-2028 the federal premium, the "half" of time-and-a-half, is also deductible when you file, up to $12,500 ($25,000 married filing jointly). It's claimed on Schedule 1-A, phases out above $150,000 of income ($300,000 joint), and doesn't reduce Social Security or Medicare. Alaska has no wage income tax to begin with. Your employer still withholds on overtime unless you claim the deduction on a new W-4, so for most people it shows up as a bigger refund.

Overtime can push your annualized income into a higher bracket, but only the dollars above the threshold are taxed at the higher rate: you always take home more by working the hours. Priced for Alaska: five overtime hours a week is worth $7,834 a year after tax, ten overtime hours a week is worth $15,168 a year after tax, fifteen overtime hours a week is worth $22,027 a year after tax, against $19,500 gross on the middle figure.

Under the Fair Labor Standards Act, non-exempt employees must be paid at least 1.5× their regular rate beyond 40 hours in a workweek. Alaska also requires daily overtime: 1.5× pay after 8 hours in a single workday. The calculator uses the standard 1.5× multiplier.

Yes. Alaska also requires daily overtime: 1.5× pay after 8 hours in a single workday. Those extra hours are ordinary wages for withholding, and state-required overtime counts toward the federal overtime deduction only for hours that also pass 40 in the workweek. Our calculator uses the standard 1.5× multiplier for the overtime hours you enter.

Add regular earnings (rate × regular hours) to overtime earnings (rate × 1.5 × overtime hours), then subtract federal tax and FICA. In Alaska that leaves about 77.8% of each overtime dollar: $15,168 of the $19,500 that ten overtime hours a week adds over a year.

Alaska shares no land border with another state, so there is no cheaper commute across a state line. Alaska is not alone: Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas and Wyoming leave exactly the same $15,168.

Alaska has no state-level sales tax, but some municipalities levy local sales taxes up to 7.5%. Many areas have no sales tax at all. This means your sales tax burden depends entirely on where you live and shop: Anchorage might have a 5% local rate, while some rural areas have zero. Unlike most states, Alaska's sales tax is purely local, not state-plus-local.

Alaska's heavy reliance on oil revenue means state services and PFD payments can fluctuate with oil prices. During oil price downturns, the state may reduce PFD payments or cut services. This creates uncertainty that doesn't exist in states with more stable revenue models. While you still won't pay income tax, the variable nature of Alaska's revenue model is worth considering for long-term planning.

Related Tools