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Alaska's unemployment insurance taxable wage base increases to $54,200 for 2026, up from $51,700 in 2025 (a 4.8% increase). The standard employer contribution rate remains at 1.50% and the employee withholding rate remains at 0.50%. This change affects all Alaska employers subject to state unemployment insurance tax. Maximum annual employee withholding per worker increases to $271.00, up from $258.50 in 2025. Employers must update payroll systems to reflect the new wage base effective January 1, 2026.
Alaska's unemployment insurance taxable wage base increases to USD 54,200 for 2026, effective January 1, 2026, up from USD 51,700 in 2025—a 4.8% increase of USD 2,500. The standard employer contribution rate remains at 1.50% and the employee withholding rate holds at 0.50%.
Who is affected
All Alaska employers subject to state unemployment insurance tax and their employees. Employers with experience-rated accounts may pay rates different from the 1.50% standard rate based on individual rate notices issued by the Alaska Department of Labor and Workforce Development (DOLWD). Newly liable employers and those without an experience rating use the standard 1.50% rate.
What's changing
The taxable wage base rises by USD 2,500 while contribution rates remain unchanged. Maximum annual employee withholding per worker increases to USD 271.00 (0.50% of USD 54,200), up from USD 258.50 in 2025.
| Year | Wage Base | Standard Employer Rate | Employee Rate | Max Employee Contribution |
|---|---|---|---|---|
| 2026 | USD 54,200 | 1.50% | 0.50% | USD 271.00 |
| 2025 | USD 51,700 | 1.50% | 0.50% | USD 258.50 |
| 2024 | USD 49,700 | 1.66% | 0.50% | USD 248.50 |
Employers contribute 1.50% on the first USD 54,200 of each employee's annual wages (or their assigned experience rate if different). Employees have 0.50% withheld from wages up to the USD 54,200 cap. Once an employee's year-to-date wages exceed USD 54,200, no further unemployment insurance tax applies to that worker's earnings for the remainder of 2026.
What NEO partners and clients should do
- Update payroll systems to apply the USD 54,200 wage base effective 2026-01-01
- Withhold 0.50% from employee wages up to the annual cap of USD 271.00 per employee
- Experience-rated employers must apply the rate stated in their 2026 DOLWD rate notice instead of the 1.50% standard rate
- Verify that Q1 2026 filings reflect the new wage base
