If You Live In This State, A Stimulus Payment Might Be Coming Your Way

Alaska residents do not pay income taxes or sales tax. Instead, they actually receive a check from the state, with those who resided in Alaska throughout 2024 eligible to receive a total of $1,704 in 2025. This payment comes from the state's oil wealth, or, more specifically, Alaska's Permanent Fund Dividend, or PFD. Established in 1976, the PFD stems from a voter-approved amendment in the Alaska State Constitution that requires the state to invest 25% of the royalties and taxes levied on oil companies that drill on state-owned land or transporting crude via the Trans Alaska Pipeline. Those investments have since swelled into a portfolio worth $84.6 billion, with PFD checks functioning like the dividend checks that investors receive from stocks or mutual funds.

Those who qualify for PFD payments include both American citizens and foreigners who receive permanent or conditional legal status who are Alaska residents for at least the entire year prior. The main catch is to continue to receive payments every year, applicants must prove they have become, and intend to remain, permanent residents of Alaska. This includes providing receipts for moving expenses, a copy of a mortgage or lease, an Alaskan ID, and a W-2 for an Alaskan job. 

With that said, it is not always certain what sort of PFD payment you will receive since it changes every year depending on the performance of the investments. The lowest check each Alaskan received was $331.29 in 1984, per the Permanent Dividend Fund webpage. The highest payment issued was $3,284 in 2022, however, the following year, it fell 40% to $1,312.

Dividend recipients cannot leave Alaska for more than 90 days without informing state officials, and they cannot leave for more than 180 days without a valid reason — such as taking care of a loved one, serving in the military, obtaining an education, or receiving medical care not available in Alaska. Even then, a PFD recipient cannot set up roots elsewhere, such as buying an out-of-state home. Should someone obtain dividends while violating these guidelines, they can be forced to give up the dividend payments, fined $3,000, and even blocked from receiving dividends for the next five years even if they returned to live in Alaska year-round.

However, if you can manage the harsh winters, not only can you get a PFD payment every year, but you can also enjoy the fact that Alaska has the lowest tax burden of any state in the U.S. and that the state won't tax your Social Security income. With that said, the Frontier State is among the most expensive places to live in the U.S., according to a recent survey from the Missouri Economic Research and Information Center. In fact, Alaska is so expensive — and its environment so rough — that it's among the ten worst states to retire in. Additionally, Alaska's tech infrastructure is so poor, and its state budget situation is so uncertain, that CNBC recently rated Alaska as one of the worst states to do business in.