Great news for Alaska residents! Over 500,000 eligible Americans are set to receive stimulus checks through the state’s Permanent Fund Dividend (PFD) program.
Unlike federal stimulus checks, this is a state-specific program that distributes a share of Alaska’s oil wealth directly to its residents. The PFD for 2025 will deliver up to $1,702, including a bonus aimed at relieving the high cost of living in the state. Here’s what you need to know about how to qualify, when to expect your payment, and how it’s taxed.
What Is the PFD and How Does It Work?
The Permanent Fund Dividend (PFD) is a program that Alaska has run since 1982. It uses the state’s oil revenues to give money back to residents. The purpose of the program is to help offset the high cost of living in Alaska, which is known for its steep expenses, especially in rural areas.
Unlike one-time federal stimulus payments, the PFD is a recurring annual payment, with each year’s amount determined by the fund’s performance and approval from the state legislature.
For 2025, eligible residents will receive a total of $1,702, which includes a $298.17 energy relief bonus. This represents a 30% increase from the 2024 payment, making it an even more impactful amount for residents facing high living costs.
When Will You Receive Your PFD Payment?
The PFD payments for 2025 will be distributed in three batches. While these dates are projected based on 2024’s schedule, here’s what you can expect:
June 18, 2025: For applications marked as “Eligible-Not Paid” by June 11, 2025.
July 17, 2025: For applications marked as “Eligible-Not Paid” by July 9, 2025.
August 21, 2025: For applications marked as “Pending” by August 13, 2025.
The Alaska Permanent Fund Division will close for public inquiries from July 7 to 18, 2025, to process pending applications, so make sure to apply by the March 31, 2025, deadline to avoid delays.
Who Qualifies for the PFD?
To qualify for the 2025 PFD, you must meet the following requirements:
Residency: You must be a resident of Alaska for the entire year of 2024.
Physical Presence: You must have lived in Alaska for at least 72 consecutive hours in 2024.
Criminal Record: You must not have felony convictions or incarcerations exceeding one year.
Application: You need to submit your application by March 31, 2025, through the Alaska Department of Revenue.
If you meet these requirements, you will automatically be considered for the payment—no further action required, apart from ensuring your details are up-to-date via the “myPFD” portal.
Taxation of the PFD
While the PFD is an important source of income for many Alaska residents, it’s important to note that the Internal Revenue Service (IRS) treats the PFD as federally taxable income.
However, Alaska itself does not impose any state tax on the payment. Therefore, recipients must report the PFD as income when filing their federal tax returns.
Will You Owe Taxes on the PFD?
Since the IRS treats the PFD as taxable income, you’ll need to account for this payment when filing your federal taxes. However, Alaska does not have a state income tax, so you won’t owe any additional state taxes on your PFD payment. Keep in mind that depending on your income level, the amount you receive may affect your tax liability for the year.
The Future of the PFD
There is ongoing debate about the long-term sustainability of the PFD program. Recently, House Bill 359 (HB359) was introduced, proposing payouts of $5,000 for 2026–2028. However, this proposal has sparked concerns about the solvency of the Permanent Fund.
As Alaska continues to face economic challenges, there are concerns about whether such large payouts can be maintained in the future.
