If you’ve lived in Alaska for any stretch of time, you already know the Permanent Fund Dividend (PFD) is more than just a check—it’s a rite of passage, a political football, and for many, a survival fund. Whether you’re budgeting for heating fuel in Nome or stocking the pantry in Bethel, that $1,702 can stretch a long way. Or vanish in a week. Depends how you play it.
What Is the PFD, and Why Does Alaska Give You Free Money?
First off: this is not a stimulus check or welfare payment. It’s a dividend. Think of it like a return on investment—except the investment is Alaska’s natural resources (namely, oil and gas).
Every year, a chunk of the state’s oil revenue is set aside into the Alaska Permanent Fund, a sovereign wealth fund created back in 1976. That fund earns money, and a portion of those earnings are distributed to qualifying residents.
In 2025, the dividend is $1,702 per person. That includes babies, kids, grandmas—everyone who qualifies.
Who’s Eligible for the 2025 PFD?
Not everyone with an Alaskan zip code gets the check. Here’s who qualifies:
You must have been an Alaska resident for the entire calendar year of 2024
You must intend to remain a resident indefinitely
You must not have claimed residency in another state or country
You must not have been absent from Alaska for more than 180 days, unless for allowed reasons (military service, college, medical treatment, etc.)
If you were out moose hunting in Canada for 6 months straight… yeah, that might be a problem.
Tip: The state will ask about your travel. Don’t fudge it—they check.
How Do You Apply?
You apply online or via paper form between June 1 and July 31, 2025. That’s it. No fee. No hidden steps. Just a form.
Minors? Parents or legal guardians must apply for them.
Missed the deadline? Unless you’ve had a legitimate hardship (like wildfire evacuation or hospitalization), you’re out of luck until June 2026.
When Will You Get Paid?
Payments are issued in batches, based on when your application is approved.
Here’s a rough idea of the 2025 schedule:
Application Approved By | Direct Deposit Date | Paper Check Mailed |
---|---|---|
August 1, 2025 | September 26, 2025 | October 10, 2025 |
September 1, 2025 | October 24, 2025 | November 7, 2025 |
October 1, 2025 | November 21, 2025 | December 5, 2025 |
Heads-up: Choose direct deposit. Paper checks are slower, more prone to issues, and nobody likes playing mailbox roulette in the snow.
Is It Taxable?
Yes. Uncle Sam wants a slice.
The IRS treats the PFD as federal taxable income. You’ll get a Form 1099-MISC in early 2026. That means even your kid’s dividend goes on your tax return.
So, don’t spend the whole thing just yet—you might owe.
PFD vs. Stimulus Checks: What’s the Difference?
A lot of folks still lump the PFD in with the COVID-era stimulus payments. But they’re not the same:
Feature | PFD | Stimulus Checks |
---|---|---|
Source | Alaska oil revenue | Federal government (Congress) |
Frequency | Annual | Emergency-based (irregular) |
Eligibility | State residency + other rules | Income-based, U.S. residency |
Taxable? | Yes | Mostly not (stimulus was non-taxable) |
So no, you can’t opt out of taxes just because “it’s not income” in your head.
Smart Ways to Use Your 2025 PFD
Some folks blow it on a new iPhone or a fall getaway. No judgment—but in a year like 2025, with inflation biting and uncertainty swirling, maybe slow your roll?
Try this instead:
Category | Use Case |
---|---|
50% Needs | Fuel oil, food bulk buys, rent cushion |
30% Wants | Flights, gifts, gadgets |
20% Savings/Investments | Roth IRA, HSA, kid’s college fund |
In remote communities where everything costs more, people often save their PFDs for medical travel, generator repairs, or winter stock-ups. It’s not just helpful—it’s necessary.
The Bigger Picture: Why the PFD Matters
This check isn’t just a personal win—it’s economic fuel.
Every fall, when the PFD drops, millions of dollars pour into local businesses. Furniture stores run sales. Airlines offer PFD specials. Grocery stores stock up. And yes, tattoo parlors, too.
But there’s a flip side: the size of the PFD is a lightning rod in state politics. Some Alaskans say it should be larger—others argue it should be smaller, or even phased out in favor of funding schools and roads.
One thing’s clear: it’s not just a check. It’s a fight over Alaska’s identity, its priorities, and who gets to benefit from its natural wealth.
FAQs
When is the 2025 PFD application deadline?
July 31, 2025.
Can kids get the PFD?
Absolutely. Parents or legal guardians need to apply for them.
What if I left the state temporarily?
If you were gone more than 180 days, you’ll need to show a qualifying exemption (like school or medical leave).
Do I have to pay taxes on the PFD?
Yes—report it on your 2025 federal tax return.
Can I split the deposit between accounts?
Nope. One account per person.