Alaska minimum wage in 2026 (and 2027)

Alaska raises pay in July, not January

Most states change their minimum on January 1. Alaska's current schedule uses July 1 for the steps, which means 2026 had two rates:

• January 1 to June 30, 2026: $13.00
• July 1, 2026 to June 30, 2027: $14.00
• From July 1, 2027: $15.00
• From January 1, 2028: adjusted each year for inflation

If you run payroll on a calendar budget, the $1.00 increase lands halfway through. A full-time minimum wage worker employed all of 2026 earns 1,040 hours x $13.00 plus 1,040 hours x $14.00, or $28,080.00, for the calendar year.

No tip credit, and overtime by the day

Alaska is one of the few states where restaurant servers, bartenders and other tipped staff get the full $14.00 cash wage. Tips cannot be credited toward it, per the DOL tipped wage table.

Overtime is stricter than the federal rule. Alaska requires 1.5 times the regular rate after 8 hours in a day as well as after 40 hours in a week. Employers with fewer than 4 employees are exempt from the overtime premium, and a voluntary flexible work plan approved by the state can allow 10-hour days with overtime starting after 10 hours, according to the DOL state summary. For fishing, tourism and construction employers who schedule long days, the daily rule is the bigger cost driver.

$14.00 and $15.00 as weekly, monthly and annual pay

Employer cost at $14.00 an hour

Annualized at $29,120.00, one employee costs a new Alaska employer:

• FICA, 7.65%: $2,227.68
• FUTA, 0.6% on $7,000: $42.00
• Alaska unemployment, employer rate 1.00% (wages are under the $54,200 base): $291.20

That is $2,560.88 on top, $31,680.88 in total. Alaska is unusual in also charging employees an unemployment contribution: 0.50% on the same wage base, $145.60 here, which you withhold. There is no state income tax to withhold, and no state paid leave program. Rates and registration are covered on Alaska payroll taxes, and the employee cost calculator runs other wages. Daily overtime hours raise the total further.

Payroll that handles daily overtime

In Alaska you need payroll that applies the 8-hour daily overtime rule as well as the 40-hour weekly rule, and withholds the employee unemployment share. Ask any provider to confirm both before you sign. Gusto's Simple plan runs $49 a month and $6 per employee (checked October 16, 2026), month to month with no long-term contract. Check how payroll tools compare and what payroll costs a small business first.

At $14.00, Alaska's rate sits below even Oregon's nonurban rate of $14.55, and below Hawaii ($16.00) and Washington ($17.13); the national state table has the rest.