Cost of Living in Alaska
Things cost about the same here as the national average.
What Things Cost in Alaska
Compared to the US national average
See raw index numbers
US national average = 100. Source: BEA Regional Price Parities 2023.
Alaska breaks the mold for cost of living analysis. It has no state income tax and no state sales tax, which sounds like a financial paradise on paper. The reality is more complex. Groceries cost roughly 29% more than the national average, healthcare runs 36% above average, and utilities can be nearly 50% higher, driven by heating costs during long, dark winters. The state's remoteness means that almost everything consumed is shipped in, which inflates everyday prices in ways that residents of the Lower 48 rarely experience.
Alaska at a Glance
Taxes in Alaska
Alaska has no state income tax. That's money in your pocket that residents of most other states don't keep. Property taxes run about 1.04% of home value, which on a $318,800 median home means roughly $3,316/year.
Cities in Alaska
Ranked from least to most expensive. Index 100 = national average.
Explore Alaska
FAQ About Alaska
Yes, overall. While Alaska has no state income tax and no state sales tax, everyday costs are significantly higher than the national average. Groceries run about 29% above average, healthcare is 36% higher, and utilities can be nearly 50% more expensive due to heating costs. Housing varies by city but averages about 17% above the national figure. The Alaska Permanent Fund Dividend helps offset some costs, but most residents find their total cost of living is 10-15% above the national average.
No. Alaska is one of nine states with no state income tax and one of only two (along with New Hampshire without a broad-based income tax) that also has no state sales tax. Some local municipalities charge modest sales taxes. This tax-friendly structure is part of why Alaska attracts workers in fields like oil, fishing, and federal employment.
The PFD amount varies each year based on fund performance. Recent dividends have ranged from approximately $1,000 to $3,200 per person. Every Alaska resident who has lived in the state for a full calendar year qualifies, including children. For a family of four, this can mean $4,000 to $12,800 in annual dividend income, which meaningfully offsets the higher cost of groceries, utilities, and healthcare.