Alaska Mileage Deduction 2026

Alaska has no state income tax. Your mileage deduction is federal-only, and there is no state return to file. At 15,000 business miles, you save about $4,056 in federal income and self-employment tax.

One thing to know: if you receive the Alaska Permanent Fund Dividend (around $1,000/year), that payment is taxable on your federal return. It goes on Schedule 1, line 8g. Your mileage deduction on Schedule C helps offset that additional federal income.

How to File

Deduct on federal Schedule C, Line 9 at 72.5¢/mile. No state filing required. Keep a mileage log with the date, destination, purpose, and miles for each trip.

Alaska does not require employers to reimburse mileage.

FAQ

Is the Alaska Permanent Fund Dividend taxable?

Yes, on your federal return. It is reported on Schedule 1, line 8g. Alaska has no state tax, so there is no state-level impact.

Does my mileage deduction offset the PFD income?

Indirectly, yes. Both flow through your federal return. Your mileage deduction reduces your adjusted gross income, which reduces the tax you owe on all income, including the PFD.

No state tax, no state forms. Just track and deduct →