AK SB154

Establishes a new individual income tax in Alaska with graduated rates: 2.75% for 2023, 3% for 2024, 3.25% for 2025, and 3.75% for 2026 and thereafter on taxable income.

Applies tax to resident individuals, trusts, and estates, as well as nonresident individuals with income derived from or connected with sources within Alaska.

Creates a permanent fund dividend tax credit allowing individuals to offset income tax liability dollar-for-dollar with dividends received under AS 43.23.005.

Requires employers to withhold income tax from wages and partnerships to withhold from nonresident partners' distributive shares at the highest marginal tax rate.

Takes effect January 1, 2023, with tax rules based on federal income tax definitions and the Multistate Tax Compact, including specific provisions for partnerships, S corporations, trusts, and estates.