United States
Cost of living in Alaska
Cost of living in Alaska sits at a price level of 102.4, placing it 2 percent above the US average of 100 and ranking it 14th most expensive among all 51 jurisdictions. What sets Alaska apart from nearly every other state is its tax structure: there is no state income tax and no statewide sales tax, though individual localities may levy their own sales taxes. For a household earning $80,000 a year, that income tax exemption alone can preserve several thousand dollars compared with states at a 5 percent rate. The tradeoff is that groceries, energy, and consumer goods cost more in remote areas, particularly in communities accessible only by air or boat. Anchorage, the largest city, runs closer to the national average on most goods, but rural Alaska pushes overall prices upward. Anyone considering a move should weigh the generous tax position against higher transportation and utility costs.
Price level
102.4
US = 100
National rank
14th
of 51, dearest first
Income tax
None
none
Sales tax
0%
state base rate
What your salary is worth in Alaska
Because prices here sit at 102.4 against the national 100, the same paycheck stretches differently than it would elsewhere. These figures hold buying power constant: the salary listed is what you would need in Alaska to live as you would on the reference amount in another place.
| Same lifestyle as | $60,000 | $100,000 |
|---|---|---|
| US average | $61,440 | $102,400 |
| California (dearest) | $55,501 | $92,502 |
| Arkansas (cheapest) | $70,702 | $117,837 |
Compare Alaska with anywhere in the US
To live the same in California you need
$75,674
to match $70,000 in Alaska
Price level, US = 100
The equivalent salary keeps your purchasing power constant: it is your pay scaled by the ratio of the two price levels. Regional Price Parities measure what a fixed basket of goods and services costs locally. Source: U.S. Bureau of Economic Analysis, 2024.
Alaska in context
Housing is the primary lever keeping Alaska close to the national average rather than well above it. Home prices in Anchorage and Fairbanks are moderate by coastal standards, and rental markets outside the urban core remain affordable. Energy costs tell a different story: heating fuel in remote communities can be two to three times the Lower 48 price, and that expense is baked into the cost of goods shipped in by plane or barge. The state partially offsets high living costs through the Permanent Fund Dividend, an annual payment to residents from oil revenue, which historically ranges from a few hundred to over two thousand dollars per person. For workers in the oil, fishing, or healthcare sectors, the combination of tax-free income and the dividend can make Alaska financially competitive despite its geographic premiums.
The closest state above Alaska on price is Colorado at 103.1. Just below sits Rhode Island at 102.3.
Frequently asked questions
Is Alaska expensive to live in?
Alaska sits at a price level of 102.4 where the US average is 100, so a typical basket of goods and services costs about 2% more than the national norm. That ranks it 14th most expensive of 51 states. Housing is usually the largest single driver of the gap.
What salary do you need in Alaska?
To match the buying power of $60,000 earned at the US average, you would need about $61,440 in Alaska. The figure scales with the price level: a place dearer than average needs more, a cheaper one needs less. Your own number also depends on housing choice and household size.
How much tax does Alaska charge?
Alaska applies no state income tax and a base state sales tax of 0%. No state individual income tax and no statewide sales tax; localities may levy local sales taxes. Local jurisdictions can add their own sales tax on top.
Cost of living in other states
Price levels are Regional Price Parities from the U.S. Bureau of Economic Analysis, Regional Price Parities (SARPP, MARPP), 2024 (public domain). State tax figures are the latest published rates from state revenue departments. All figures are estimates for general comparison and not financial advice; your own costs depend on housing, household size and lifestyle.