Skip to content
statelinetax.comChecker

Live in Alabama, Work Remotely for a Alaska Employer: Who Taxes You?

Home state onlyAlabama withholds

Answer

Only Alabama taxes you. Alaska levies no personal income tax on wages, so nothing is withheld there and you file no Alaska return. Alabama taxes its residents on all income wherever earned, which means your Alaska earnings go on a Alabama resident return in full.

Last verified

Crossing into a state with no income tax does not lower your tax bill, because your home state is not taxing you on where you work — it is taxing you on where you live. Alabama reaches all of a resident's income, and Alaska adds nothing on top.

What you file

  1. 1Resident return · Alabama

    File a Alabama resident return reporting all of your income.

The two states, side by side

 AlabamaAlaska
Taxes wagesYes — graduatedNo
Reciprocity partnersNoneNone
Convenience ruleNoNo
Nonresident returnForm 40NRNot applicable
Credit for other-state taxSchedule CRNo income tax
Nonresident safe harbourNone publishedNot applicable
Local income taxYesNo
Revenue departmentAlabama Department of RevenueAlaska Department of Revenue — Tax Division
Last verified

The other direction

Reversing the commute does not always reverse the answer. Living in Alaska and working in Alabama gives:No state income tax on your wages.

Alaska to Alabama →

Same two states, different situation

The withholding answer turns on how you are paid and where the work happens, not only on which two states are involved.

Other Alabama pairs

Questions people actually ask

I live in Alabama and work remotely for a Alaska employer. Which state do I pay?

Only Alabama taxes you. Alaska levies no personal income tax on wages, so nothing is withheld there and you file no Alaska return. Alabama taxes its residents on all income wherever earned, which means your Alaska earnings go on a Alabama resident return in full.

Which state should my employer be withholding for?

Alabama. Your employer should withhold Alabama tax rather than Alaska tax on these wages. If a Alaska line is showing on your pay stub, raise it with payroll now rather than at filing time.

How current is this?

The Alabama and Alaska rules on this page were last checked against Alabama Department of Revenue and Alaska Department of Revenue — Tax Division on 2026-08-07. We re-check the full grid every December after state legislative sessions close, and re-check the convenience-of-the-employer states quarterly because that is where the rules move fastest.

Sources

Every fact above comes from the revenue department that publishes the rule. We do not cite secondary summaries, and we do not restate a figure we could not find at source.