The proposed bill establishes a new income tax framework in Alaska, introducing a four percent tax rate on taxable income exceeding $150,000 for individual taxpayers filing separately and $300,000 for those filing jointly. It also imposes an annual education tax of $150 on individuals with wages or net earnings from self-employment in the state. The bill outlines provisions for nonresident individuals, trusts, and estates, detailing how their taxable income will be calculated based on income derived from or connected with sources in Alaska. Additionally, it repeals existing tax credits against the individual income tax under the Alaska Net Income Tax Act while allowing for a credit against taxes due for income taxes imposed by other jurisdictions.

Furthermore, the bill amends existing tax laws to clarify definitions and regulations surrounding income derived from business activities within the state, particularly for nonresidents. It introduces provisions for tax withholding on wages, requiring employers to deduct and remit taxes based on employee wages, and mandates that partnerships with nonresident partners withhold taxes on distributive shares of income. The bill also establishes an early education and technical and vocational education fund, funded by specific taxes, and allows individuals to direct their permanent fund dividend towards tax payments. It includes a repeal of certain sections of existing law effective January 1, 2027, with new provisions applying to income received on or after that date.

Statutes affected:
HB0152A, AM HB 152, introduced 03/24/2025: 43.05.045, 43.22.075, 43.05.220, 43.22.015, U.S.C, 43.22.010, 43.22.030, 43.22.045, 43.22.020, 13.36.215, 43.22.025, 43.20.144, 43.22.035, 43.22.040, 43.22.050, 43.22.055, 43.22.060, 43.22.065, 43.22.070, 43.22.080, 43.22.085, 43.22.090, 43.23.005, 43.22.095, 43.22.100, 43.22.105, 43.05.230, 43.22.110, 14.03.420, 43.22.150, 43.05.085, 43.20.012, 43.20.013
HB0152B, AM CSHB 152(STA), introduced 03/25/2026: 43.05.045, 43.22.075, 43.05.220, 43.22.015, 43.22.012, 43.22.010, U.S.C, 43.22.045, 43.22.020, 13.36.215, 43.22.022, 43.22.025, 43.22.030, 43.20.144, 43.22.035, 43.22.040, 43.22.050, 43.22.055, 43.22.060, 43.22.065, 43.22.070, 43.22.080, 43.22.085, 43.22.090, 43.23.005, 43.22.095, 43.22.100, 43.22.105, 43.05.230, 43.22.110, 14.03.420, 43.22.150, 43.05.085, 43.20.012, 43.20.013