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Crunching costs, sorting signals, rendering insights.
Crunching costs, sorting signals, rendering insights.
Premium market, smart picks: while Alaska trends above the national average, the gap between the most and least expensive cities here is wider than you'd think. Anchorage at index 105 is the standout — offering meaningful savings without leaving Alaska.
#1 Ranked: Anchorage — cost index 105, rent $1,660/mo, income $98,152
0 of 1 cities keep rent under 30% of $40K gross income
Data sourced from Census Bureau, Zillow, BLS, and Tax Foundation — current as of 2026
| City | State Tax | Sales Tax | Property Tax | Est. Take-Home |
|---|---|---|---|---|
1Anchorage | 0% | 1.82% | 1.04% | $32,372 |
Premium market, smart picks: while Alaska trends above the national average, the gap between the most and least expensive cities here is wider than you'd think. Anchorage at index 105 is the standout — offering meaningful savings without leaving Alaska.
On a $40K salary, the key number is $1,000/month — that's 30% of gross, the standard affordability line. That tracks. Anchorage ($1,660/mo, 50%) all clear that bar. After federal tax, FICA (7.65%), and state income tax, estimated take-home ranges from $32,372 to $32,372/year across these top picks. Worth a deeper look.
At $1,660/month for rent and a cost index of 105, Anchorage is pretty much what you'd expect from a mid-size city in this part of the country. Income is $98,152. Fairly typical for a city this size.
If you're ready to act on this, three things to do next: 1) Click into the city pages for the top 3 and check rent trends — direction matters more than the snapshot. 2) Run your income through the salary calculator for a personalized cost comparison. 3) Compare your top two picks head-to-head on our comparison page. The data is here; the decision is yours.
286,075 residents · Alaska
The #1 spot goes to Anchorage, and the breakdown explains why. Renters here pay $1,660/month — which, honestly, is lower than you'd expect here — — saving renters $2,820 per year compared to the national average. Meanwhile, Utilities is the standout at index 97, keeping costs manageable. The weak spot? Housing at 113. At a 20% rent-to-income ratio, there's genuine breathing room in the average household budget.
We calculate what percentage of a $40K gross salary goes to median rent. Cities where rent consumes less of your paycheck rank higher. We also factor in estimated take-home pay after federal taxes, FICA (7.65%), and state income tax. All data is sourced from federal agencies and verified research institutions. Cost of living indices are normalized to 100 (national median) using Zillow rent as the primary signal, with sub-category adjustments derived from regional BLS price data. Rankings are updated monthly as new data is released.
Anchorage ranks #1 in Alaska for this analysis with a cost index of 105 and median income of $98,152.
Yes. On a $40K salary in Anchorage, rent would consume about 50% of your gross monthly income. Financial experts recommend keeping rent under 30%. It's tight — consider a roommate or nearby suburb.
Our cost of living index uses real Zillow rent data as the foundation, indexed to 100 (national median). Sub-categories (housing, food, transport, utilities, healthcare) are derived from the overall index with regional adjustments. Data is updated monthly.
City data is refreshed monthly from Census Bureau population estimates, Zillow rent and home price indices, BLS salary data, and Tax Foundation tax rates. Last updated: 2026.
The median 1-bedroom rent in Anchorage is $1,660/month as of 2026, based on Zillow's Observed Rent Index. This is $235 below the national median of $1,895/month.
After federal taxes, FICA (7.65%), and 0% state income tax, estimated take-home on $40K in Anchorage is approximately $32,372/year ($2,698/month). After median rent of $1,660/month, you'd have roughly $12,452/year for all other expenses.
The median home price in Anchorage is $405,601, which is 4.1× the local median income. It's on the edge of affordability for median-income households. The national median home price is $467,370.
Alaska has a 0% state income tax rate — one of the states with no income tax. Combined state and local sales tax averages 1.82%, and the effective property tax rate is 1.04%.
This ranking was generated using data current as of early 2026. Population and income data comes from the Census Bureau's American Community Survey (5-year estimates). Rent and home price data is from Zillow's monthly releases. Tax rates are from the Tax Foundation's 2025 edition. Rankings are refreshed monthly.