Side-by-side tax comparison between Alaska (no income tax) and Arizona (2.5% top rate).
| Salary | Alaska | Arizona | Difference | Winner |
|---|---|---|---|---|
| $50K | $42,298 | $41,360 | −$938 | Alaska |
| $75K | $61,303 | $59,896 | −$1,406 | Alaska |
| $100K | $78,890 | $77,015 | −$1,875 | Alaska |
| $150K | $113,446 | $110,634 | −$2,813 | Alaska |
| $200K | $149,103 | $145,353 | −$3,750 | Alaska |
Alaska offers higher take-home pay at every salary level. With no state income tax, Alaska gives you a significant advantage over Arizona's 2.5% top rate. At $100K, the difference is $1,875/year — that’s $156/month.
However, cost of living matters. Alaska has a cost index of 127 while Arizona is at 97. After adjusting for cost of living, the gap widens significantly.