Alaska's minimum wage of $14 in 2026 is among the highest in the United States, and it is significantly higher than than the base federal minimum wage of $7.25 still used in 20 states.
Assuming a standard 40-hour work week, the weekly minimum wage in Alaska is $560. For full-time employees working 52 weeks per year, the annual minimum wage in Alaska is $29.1K.
Based on $14/hr minimum
Based on $14/hr minimum
The minimum wage rate of Alaska and its neighboring states ranges from $14 to $20.74, with an average of $16.36. Alaska, at $14, has the lowest hourly minimum wage within this group of states. Washington ($20.74), Hawaii ($16), and Oregon ($14.70) all have higher hourly rates than Alaska.
While the general minimum wage is $14 per hour in Alaska, there are several exceptions where workers may legally receive less than this amount:
Alaska minimum wage and overtime laws are exempted for 'student learners' unless they have departmental application and approval is acquired.
Agricultural workers, as well as anyone employed in the taking of aquatic life or hand picking shrimp, are exempted.
Anyone employed in domestic service is exempted.
Anyone employed in Federal, State or Local Government is exempted from the Alaska state minimum wage.
Any individual under 18 working less than 30 hours per week is exempt from the Alaska state minimum wage.
Anyone workings in nonprofit religious, charitable, cemetery, or educational organization or other nonprofit organization where the services are on a voluntary basis is exempt.
Alaska State Law explicit exempts anyone "engaged in the delivery of newspapers to the consumer" from being subject to minimum wage laws.
Any individual searching for placer or hard rock minerals is exempt from minimum wage.
If a taxi driver establishes the driving area and hours, contracts on a flat rate basis for the use of the cab, cab permit or dispatch service, and who is compensated solely by the customers served, they are exempted from minimum wage requirements.
Any individual employed as a computer systems analyst, computer programmer, software engineer, or other similarly skilled worker is exempt from minimum wage requirements.
Anyone employed solely as a watchman or caretaker on premises is exempt from minimum wage.
Any individual employed in a bona fide executive, professional or administrative capacity as defined by the FLSA or the regulations adopted by those sections, or as an outside salesman or any salesman working on a straight commission basis is exempt from the state minimum wage laws in Alaska.
Alaska's cost of living index for 2025 is 124.9, which places it as the 6th most expensive state to live in the United States.
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124.9
Assuming a standard 40-hour work week, the real wage in Alaska, adjusted for the state’s cost of living index of 124.9, is approximately $11.21 per hour. This means that while the nominal minimum wage is $14 per hour, the purchasing power of those earnings is lower due to Alaska's higher cost of living expenses. For full-time employees, the real weekly earnings amount to roughly $448.36, translating to an annual purchasing power of $23,314.65 when working 52 weeks per year.
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According to the most recent data, the median household income in the United States has seen a significant increase in 2023.
Alaska’s minimum wage is adjusted annually based on inflation following a 2014 voter-approved law that ties increases to the Consumer Price Index.