Alaska tips calculator: no income tax, no tip credit
In Alaska the federal deduction is the whole tax story — there is no state income tax — and every hour must be paid at the full state minimum before tips: $14.00 since July 1, 2026, rising to $15.00 on July 1, 2027.
Ballot Measure 1 sets the steps
Voters approved Ballot Measure 1 in November 2024. The Department of Labor and Workforce Development announced the schedule it created: $13.00 on July 1, 2025, $14.00 on July 1, 2026 and $15.00 on July 1, 2027, after which the rate is adjusted for inflation each January starting in 2028. Exempt salaried employees must earn at least twice the minimum for a 40-hour week, so the salary floor moves with each step.
Alaska figures
| Cash wage / minimum | $14.00 (no tip credit) |
|---|---|
| In force | July 1, 2026 – June 30, 2027 |
| Next change | July 1, 2027: $15.00 |
| Tipped threshold | Not applicable — no tip credit |
| Tips on the 2025 return | no state income tax on wages. Alaska has levied no individual income tax since 1980; tips are only federally taxed. Source: Alaska Department of Revenue |
| Tips on the 2026 return | no state income tax on wages. Unchanged. Source: Alaska Department of Revenue |
Who controls your tips
Alaska’s regulations (8 AAC 15.907) limit an employer’s handling of an employee’s tips to narrow purposes such as passing on a tip a customer added to a card payment. The state wage-and-hour pamphlet is explicit that a federal-style tip credit does not apply, so a fishing-lodge guide or a Juneau bartender keeps every tip on top of the hourly rate.
An Anchorage bartender, before and after July 2027
$24,000 of tips and $29,000 of wages give a $24,000 federal deduction worth $2,880. Alaska adds nothing because it taxes no wages. In a 36-hour week paid at $14.00 the employer owes $504 before tips, and the $260 of tips are entirely the bartender’s — the make-up owed is $0.
Check an Alaska week at the full minimum
Where these figures come from
- Alaska Department of Revenue · Alaska Department of Labor and Workforce Development, Wage and Hour
- Tax Division — tax types administered (2026)
- Minimum Wages for Tipped Employees (table by state) (2026-07-01)
- Alaska minimum wage to increase (news release 25-11) (2025)
Federal rules: how the deduction works.
Figures verified against primary sources on