Alaska Ranks Third-Lowest for Federal Tax Debt Burden
A new study finds Alaskans owe the IRS relatively little compared with their household incomes, ranking the state third-lowest nationally.
Updated on Nov. 7, 2026 in Taxes
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J David Tax Law ranked Alaska third-lowest nationally for federal tax debt burden relative to income. Alaskans owed a collective $533 million in federal back taxes for tax year 2023.
Why it matters
The ranking measures how heavy federal tax bills are compared with typical household earnings, giving Alaska residents a sense of how their tax debt burden stacks up. The result comes as Alaska has no state income tax and no state sales tax.
Alaska's average tax bill of $5,236 represents 6.06% of its $86,370 median household income, below the national pain ratio of 7.99%. Only Hawaii and Maryland have a lower tax debt pain ratio than Alaska.
The players
J David Tax Law
A tax law firm that published the analysis ranking states by federal tax debt burden relative to household income.
The details
Nearly 102,000 Alaska residents ended the 2023 tax year owing the IRS money, with the analysis comparing amounts owed at filing against Census Bureau income estimates. Alaska accounts for 0.7% of the $75.09 billion owed across all West Coast states.
Timeline
Tax year 2023: Alaskans owed $533 million in federal back taxes.
November 7, 2026: The ranking placing Alaska third-lowest was published.
Season Trajectory
Alaska's pain ratio sits more than 1.7 points below the West region average of 7.82% and nearly two points below the national ratio of 7.99%. The state's position among the lowest-burdened places it apart from neighboring high-burden western states such as Nevada and Wyoming.
Alaska residents with federal tax debt owe a smaller share of their household income than most Americans, which can ease the pressure of paying back taxes. The state's lack of a state income tax and state sales tax further shapes how much residents keep from their earnings.
The takeaway
Alaska's low tax debt burden shows that the same federal tax bill can weigh very differently depending on local incomes. Residents comparing their own situation should measure their tax bill against their household earnings rather than the dollar amount alone.
Further reading
For more on how federal obligations compare across the country, see Taxes coverage.
Source note: This article includes information reported by Peninsula Clarion.
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