How Much Does It Cost to Hire an Employee in Alaska? (2026)
State-specific payroll taxes, workers' comp, and total employer costs in Alaska.
Hiring a $60,000/year employee in Alaska costs employers approximately $66,766 total in 2026, including $6,766 in mandatory payroll taxes and workers' comp. That's a 1.11x multiplier on base salary.
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Total Cost at $60K Salary
$66,766
Cost multiplier: 1.11x
SUTA Rate (Mid)
2.0%
Wage base: $54,200
Workers' Comp Rate
1.75%
No state income tax
Key Insight
For a $60,000 salary in Alaska, employers pay $6,766 in mandatory taxes — a 1.11x cost multiplier. Alaska's SUTA rate (2.0%) is above the national average of 1.70%, and there is no state income tax — a take-home pay advantage for employees.
Model your specific hire
Use our interactive calculator pre-loaded with Alaska's tax rates. Adjust salary, benefits, and overhead to get your true cost.
Alaska Employer Tax Details
State-specific payroll obligations for employers
| SUTA Rate Range | 1.0% – 5.4% |
| SUTA New Employer Rate (typical) | 2.0% — No change from 2025 |
| SUTA Wage Base | $54,200 |
| Workers' Compensation (avg) | 1.75% of payroll — No change from 2025 |
| State Income Tax | No |
2026 Rate Changes in Alaska
- — SUTA rate unchanged at 2.0% from 2025 to 2026.
- — Workers' comp rate unchanged at 1.75% from 2025 to 2026.
Rate changes reflect Alaska #{TaxConstants::TAX_YEAR} announcements vs. 2025 baseline. Workers' comp rates are industry averages and vary by classification code.
Example Employer Costs in Alaska
Mandatory employer taxes only (no benefits or overhead)
| Component | $40,000 Salary | $60,000 Salary | $80,000 Salary |
|---|---|---|---|
| Social Security (6.2%) | $2,480 | $3,720 | $4,960 |
| Medicare (1.45%) | $580 | $870 | $1,160 |
| FUTA | $42 | $42 | $42 |
| SUTA (AK) | $800 | $1,084 | $1,084 |
| Workers' Comp | $700 | $1,050 | $1,400 |
| Total Employer Taxes | $4,602 | $6,766 | $8,646 |
| Total Cost (salary + taxes) | $44,602 (1.12x) | $66,766 (1.11x) | $88,646 (1.11x) |
These estimates include mandatory employer payroll taxes only. Add benefits ($7K-$17K) and overhead (~10% of salary) for full cost.
Tax rates sourced from IRS Publication 15, SSA COLA notices, and Alaska Department of Labor. Social Security tax is 6.2% of wages up to $184,500. Medicare is 1.45% with no wage cap. FUTA is 0.6% on the first $7,000 after credit.
How Alaska Compares
Alaska's typical SUTA rate of 2.0% is above the national average of ~1.70%. However, with a wage base of $54,200, which is well above the federal minimum of $7,000, the effective SUTA cost per employee can be significant.
Workers' compensation at 1.75% of payroll is above the national average of ~1.20%. As one of the states with no state income tax, employees in Alaska keep more of their paycheck, which can be a hiring advantage without additional employer cost.
Alaska Employer Environment
Above-average employer costs- No state income tax — employees keep more of their paycheck, a recruiting advantage
- SUTA rate 2.0% (wage base $54,200) — in line with national average
- Elevated workers' comp rate (1.75%) — among the higher rates nationally, varies by industry
Alaska's overall employer tax burden is broadly in line with the national average. Review SUTA and workers' comp rates relative to your industry classification for a more precise picture.
Alaska Employment Profile
Alaska's high SUTA wage base of $54,200 reflects the state's strategy of fully-funded unemployment reserves, but no state income tax partially offsets this for employees.
oil & gas extraction, commercial fishing, tourism & hospitality
Remote location premiums and seasonal labor patterns significantly affect real hiring costs beyond the payroll tax line items.
Cost at Different Salary Levels in Alaska
Total employer cost including all mandatory payroll taxes
Compare Alaska With
Employee Costs in Other States
Hiring Cost by Industry in Alaska
Workers' comp rates vary significantly by industry — restaurant and construction workers cost far more to insure than office staff.
Average Wages by Occupation in Alaska
BLS OEWS 2024Median annual wages from the Bureau of Labor Statistics — use these as your baseline salary when estimating total hiring cost.
| Occupation Group | Median Annual | Employed |
|---|---|---|
| Management | $114,780 | 26,000 |
| Healthcare Practitioners and Technical | $102,660 | 20,790 |
| Architecture and Engineering | $101,770 | 7,450 |
| Legal | $99,880 | 2,150 |
| Computer and Mathematical | $86,430 | 5,140 |
| Business and Financial Operations | $82,570 | 13,860 |
| Life, Physical, and Social Science | $79,710 | 6,920 |
| Construction and Extraction | $74,090 | 21,080 |
States With Similar Hiring Costs
These states have SUTA rates close to Alaska's 2.0% — good for cost benchmarking.
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Simplify Payroll in Alaska
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