Cost of Living in Alaska (AK)

Compare costs across 2 Alaska cities. From home services to salaries, see how AK stacks up against the national average.

2
Cities
131
Avg Cost Index
$83K
Avg Income
Direct Answer

Is Alaska Affordable?

Alaska's average cost index is 131, which is above the national baseline of 100. Anchorage is the most affordable tracked city in AK at index 127, while Juneau is the most expensive at index 135.

The gap between the cheapest and most expensive tracked cities is 8 index points, so state-level averages should be used as a map, not a final budget.

State cost overviewBLS, Census, HUD inputsLast verified May 2026
Alaska Highlights: Most affordable city: Anchorage (index 127). Most expensive: Juneau (index 135). The gap between cheapest and most expensive is 8 index points.

What Drives the Statewide Cost Picture?

Average index
131/100

Alaska is above the national cost baseline across tracked cities.

Cheapest city
Anchorage

Anchorage has a cost index of 127.

Most expensive
Juneau

Juneau has a cost index of 135.

Income average
$83K

Average median household income across 2 tracked AK cities.

Cheapest and Most Expensive Cities in Alaska

CityPopulationCost IndexMedian IncomeTier
Anchorage291K127$78Klarge
Juneau32K135$88Ksmall

Alaska State Taxes (2026)

Headline tax rates that affect your real take-home pay and total cost of living in Alaska.

State Income Tax
0%
No income tax
Combined Sales Tax
1.76%
0% state + 1.76% avg local
Property Tax (Effective)
1.19%
~$3,570/yr on a $300K home
Tax friendly: Alaska has no state income tax - workers keep more of their paycheck. No state estate tax. Estimate your take-home pay

State Planning Checklist

  1. Start with Anchorage if the priority is lowest recurring cost inside Alaska.
  2. Compare Juneau against salary and tax advantages before assuming the higher-cost city is worse.
  3. Use city pages for rent, salary, insurance, and local service costs before making a relocation decision.

Cost by Category Across Alaska

Compare Cities Within Alaska

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Frequently Asked Questions: Alaska Cost of Living

What is the cost of living in Alaska?

Alaska's average cost-of-living index is 131, which is 31% above the U.S. baseline of 100. Across 2 tracked cities, costs span from index 127 in Anchorage to 135 in Juneau.

What is the cheapest city to live in Alaska?

Anchorage is the most affordable tracked city in Alaska, with a cost index of 127 — roughly 27% above the national average.

What is the most expensive city in Alaska?

Juneau is the most expensive tracked city in Alaska, at a cost index of 135. The gap between Anchorage and Juneau is 8 index points, so always budget at the city level.

What is the average household income in Alaska?

The average median household income across 2 tracked Alaska cities is about $83,246 per year.

Does Alaska have a state income tax?

No. Alaska has no state income tax, so workers keep more of each paycheck compared with high-income-tax states.

How much is sales tax in Alaska?

The combined sales tax in Alaska averages 1.76% — 0% at the state level plus 1.76% in average local tax.

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