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Alaska 2026 Tax Changes — What Residents & Business Owners Need To Know

On January 1, 2026, major federal tax laws change as key provisions of the Tax Cuts and Jobs Act (TCJA) expire and new rules under the One Big Beautiful Bill Act (OBBBA) fully kick in.

Even though Alaska has no state income tax, every Alaska resident is still affected by federal tax changes:

This guide breaks down exactly how the 2026 tax changes impact Alaska taxpayers — in clear, practical terms.

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Every recommendation is tied directly to federal tax law changes taking effect in 2026.

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All strategies are reviewed by a licensed MERNA™ Strategist who understands Alaska-specific realities — from oilfield rotations to seasonal income.

What’s Changing Federally in 2026 — Alaska Edition

Even with no state income tax, Alaska residents still file a federal return — and that’s where 2026 hits hardest.

Below are the biggest changes.

Standard Deduction Drops in 2026

The higher standard deduction that started in 2018 is scheduled to shrink in 2026.
Alaska Impact

Because Alaska has:

…the drop in the standard deduction can noticeably increase your taxable income.

Alaskans most affected:

More people will be pushed into itemizing again — and many will see a higher overall tax bill.

2026 Federal Tax Brackets Increase

Who feels this in Alaska:

If your household income lands roughly between $75,000 and $350,000, expect a larger tax hit in 2026 unless you plan ahead.

QBI (20% Pass-Through Deduction) Is Now Permanent — With New Rules

The Qualified Business Income (QBI) deduction — the 20% pass-through deduction for many small businesses — has been made permanent under the One Big Beautiful Bill Act (OBBBA).

Good news:

If you own an LLC, S-Corp, sole proprietorship, or rental activity that qualifies, QBI remains one of your strongest deductions.

But starting in 2026:

Alaska Impact

These changes matter for:

QBI is still a massive opportunity — but you need a 2026-ready entity and bookkeeping setup to fully benefit.

Child Tax Credit Shrinks

Unless Congress intervenes again, the Child Tax Credit (CTC) shrinks in 2026.
Who feels this in Alaska:

Combined with higher brackets and a lower standard deduction, many Alaska families will see smaller refunds and higher tax bills.

Marriage Penalty Returns in 2026

Under TCJA, many married couples were shielded from the old “marriage penalty.”

In 2026, that protection fades:
Alaska households especially at risk:

A 2026 plan can help re-balance income, use business structures, and optimize retirement to offset the marriage penalty.

Marriage Penalty Returns in 2026

Alaska-Specific Considerations

Even though Alaska doesn’t tax personal income, its unique economy and lifestyle change how you should plan for federal taxes.

1. No State Income Tax — All the Pain Is Federal

There’s no state return, but:

This makes federal tax strategy critical for Alaskans.

No State Income Tax — All the Pain Is Federal

2. Permanent Fund Dividend (PFD) Is Still Taxable Federally

The Alaska Permanent Fund Dividend:
For 2026, you’ll want to:
Permanent Fund Dividend (PFD) Is Still Taxable Federally

3. Alaska Real Estate & STR (Short-Term Rentals)

Key markets:

2026 Changes Affect:

If you operate an Airbnb, VRBO, mid-term rental, or multi-unit property, 2026 planning can save tens of thousands over the next decade.

Alaska Real Estate & STR (Short-Term Rentals)

4. Seasonal & Rotational Work

Many Alaska residents work:
This creates:

A proper 2026 strategy can coordinate:

Who Is Hit Hardest in Alaska (2026)

If you’re in one of these groups, ignoring 2026 is expensive.

What Alaska Taxpayers Should Do Before December 31, 2025

Here are key actions Alaska residents should consider before the new rules fully take effect:

THIS is the point of the 2026 planning window:
Use 2025 to get ahead of the tax wave, not caught under it.

Alaska 2026 Tax FAQ

No. Alaska still has no state income tax. The changes are federal.

Because federal brackets go up, the standard deduction shrinks, and credits drop — all of which increase your federal tax bill.

Yes. The Alaska Permanent Fund Dividend is taxable federally, even though there’s no state income tax.

Yes. A smaller standard deduction and higher brackets mean mortgage interest and property taxes matter more when you itemize.

 Yes. Depreciation, capital gains, and STR rules all change — especially in tourist-heavy areas like Anchorage, Girdwood, Juneau, and the Kenai Peninsula.

If your net business income is roughly $60K–$250K, it’s worth exploring. A 2026-ready entity structure can save thousands per year.

Most likely yes, if you do nothing — higher brackets and a lower standard deduction mean more withholding or a larger bill at tax time.

Get a 2026 Tax Plan for Alaska

Alaska may not have a state income tax, but federal changes in 2026 will still hit:

Your income is unique. Your schedule is unique. Your mix of W-2, 1099, PFD, and business income is unique.

Your tax strategy must be unique too — and it must be in place before 2026 fully takes effect.

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