Alaska State Athlete Taxes

Quick Alaska Tax Stats

Tax Type	Rate / Info
Income Tax	0% (no state income tax on wages or investment income)
Sales Tax	No statewide sales tax; local jurisdictions may have up to ~7.5% local sales tax
Jock Tax	No state income tax; athletes still owe tax in other states where they play away games
Cost of Living (Range)	$75,000 – $165,000 annual for single-person moderate-to-high lifestyle (Anchorage, Fairbanks)
Average Home Price	~$380,000 (3-bed/2-bath home in Anchorage metro)

Income Tax in Alaska

Alaska is one of the most tax-advantageous states in the U.S. for high earners, including professional athletes, because it imposes no state income tax on wages, salaries, bonuses, or investment income (funds).

This creates significant advantages:

• Net income retention: Salaries, sponsorships and endorsements are not reduced by state tax, meaning higher overall take-home pay.
• Investment benefits: Alaska does not tax capital gains or dividends, further enhancing net return on investments.
• Long-term wealth planning: With no state income tax drag, athletes can more efficiently accumulate and preserve wealth over their careers and post-career years. This also helps them to build a larger net worth, faster, and to outpace athletes who net less in other, high tax states.

Example

A pro hockey player earning $20 million in contract income while domiciled in Alaska avoids a state income tax bill that could exceed $2–$5 million in high-tax states like Colorado or Connecticut over a multi-year contract, freeing up more capital for investing and savings.

Because Alaska’s tax code does not levy personal income tax, athletes based there can dramatically increase net effective compensation.

Sales Tax

Alaska has no statewide sales tax, but some local jurisdictions levy their own sales taxes, which can range as high as ~7.5% in certain areas.

This means:

• Everyday purchases and luxury items may be taxable in some cities.
• Overall tax burden remains very low compared with most states.

Athletes with high discretionary spending can reduce tax leakage by:

• Making major purchases in localities with zero local sales tax.
• Timing purchases when local rates are comparatively low.
• Structuring large acquisitions strategically across regions.

Example

Buying a $150,000 performance vehicle in a local jurisdiction with a 7.5% sales tax would be roughly $11,250, still lower than combined rates in many continental states.

Being in a no statewide sales tax environment makes Alaska attractive from an expenditure perspective, especially for big-ticket purchases.

Jock Tax

Although Alaska does not tax wage income, professional athletes still pay what’s commonly referred to as jock tax in states where they earn income.

This occurs because away game earnings are taxed by states that impose personal income tax.

• Home game earnings in Alaska are tax-free at the state level.
• Away game earnings are subject to apportionment and tax in other states with tax obligations.

Example

A football player with domicile in Anchorage will owe tax to states like Minnesota, Illinois, or Massachusetts on income allocated to games in those jurisdictions, even though Alaska imposes no state tax.

This dynamic places a premium on residency and travel planning for multi-state athletes.

Cost of Living and Housing

The cost of living in Alaska is higher than many lower-cost continental metros, primarily due to geography and logistics:

• Anchorage / Fairbanks: A professional athlete lifestyle (housing, food, transport) might run $110k–$165k annually, influenced heavily by housing costs, energy expenses, and transportation.
• Smaller towns: Costs vary, but remote locations can have higher shipping and goods costs.

Housing

• Typical 3-bed/2-bath homes in the Anchorage metro area sit in the ~$350-$400k range.
• Due to geographic isolation, rural and remote areas can have more expensive housing and shipping costs for goods and services.

Even with higher living costs, the absence of state tax offsets some living expense pressure for athletes focused on net retention.

Residency Rules

Athletes establishing residency in Alaska benefit from:

• Zero tax on wage income and investment income.
• Sales tax environment that is largely local and optional.
• A tax climate supportive of long-term wealth retention.

To establish domicile in Alaska, typical documentation includes:

• Alaska driver’s license/state ID
• Proof of physical presence
• Primary residence documentation
• Voter registration and local ties

Example

An athlete with ties to the PNW or Canada might choose Alaska residency early in their career to optimize net income and reduce tax obligations, even if competitive schedules span multiple U.S. states.

Why Alaska is Athlete-Friendly

• No income tax on wages or investments = maximum net income
• No statewide sales tax = lower tax leakage on consumption
• Moderate home prices relative to high-tax states
• Strategic for residency and wealth accumulation planning
• Income tax removal improves net effective earnings multiplier

Alaska’s combination of zero state income tax and limited sales tax exposure creates a powerful position for athletes focused on maximizing earnings and minimizing tax drag over time.

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Related No Income Tax States

• Washington State Athlete Taxes
• Nevada State Athlete Taxes
• Wyoming State Athlete Taxes
• South Dakota State Athlete Taxes
• Texas State Athlete Taxes

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Credits

Sources: Alaska Department of Revenue & Taxation, State Tax Rates 2025, Zillow / Redfin Housing Data, APSM Proprietary Analysis
Disclaimer: This article contains general financial information for educational purposes and does not constitute professional advice.

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