AK HB185

Establishes an annual income tax equal to the permanent fund dividend amount imposed on resident and nonresident individuals with Alaska-source income.

Exempts individuals filing separately with federal adjusted gross income below $75,000 and joint filers with combined income below $150,000; also exempts dependents.

Defines taxable income as federal adjusted gross income and requires returns to be filed with the Department of Revenue on the same schedule as federal income tax returns.

Allows eligible permanent fund dividend recipients to direct the state to withhold all or part of their dividend to pay the tax owed, with the held amount not to exceed the dividend after other reductions.

Takes effect January 1, 2026.