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Crunching costs, sorting signals, rendering insights.
Crunching costs, sorting signals, rendering insights.
Dollar for dollar, few states match Alaska's value. 1 out of 1 cities undercut the national cost index of 111. Leading the pack: Anchorage at index 97, where median rent of $1,660/month saves renters $2,820/year versus the national median.
#1 Ranked: Anchorage — cost index 97, rent $1,660/mo, income $98,152
1 of 1 cities come in below the national cost-of-living average of 111
Data sourced from Census Bureau, Zillow, BLS, and Tax Foundation — current as of 2026
Dollar for dollar, few states match Alaska's value. 1 out of 1 cities undercut the national cost index of 111. Leading the pack: Anchorage at index 97, where median rent of $1,660/month saves renters $2,820/year versus the national median.
The #1 spot goes to Anchorage, and the breakdown explains why. Renters here pay $1,660/month — saving renters $2,820 per year compared to the national average. Meanwhile, Housing is the standout at index 97, keeping costs manageable. The weak spot? Healthcare at 99. At a 20% rent-to-income ratio, there's genuine breathing room in the average household budget.
Tax burden isn't just income tax. We combine three layers: state income tax (0% in Anchorage), combined state+local sales tax (1.82%), and effective property tax (1.04%). Alaska has no state income tax — a significant advantage that keeps more of every paycheck. On a $75,000 salary, the estimated take-home in #1 Anchorage is $57,710/year.
Before celebrating, check the next metric: Across Alaska, the average cost of living index is 97 — 14 points below the national median. Known for vast wilderness, high wages, and higher prices, the state offers 1 tracked cities with median rents averaging $1,660/month. That's $235 less than the national average of $1,895. The data here speaks for itself.
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. And as a general rule, 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. One to watch.
286,075 residents · Alaska
Anchorage earns its position at #1 through a combination that's hard to replicate. And for many people, the 97 cost index sits 14 points below the national baseline, and the $98,152 median income means purchasing power here is genuinely above average. Homes list at $405,601 — $61,769 below the national median — a genuine ownership opportunity. On the cost side, Housing leads the way at 97, while Healthcare trails at 99.
| City | State Tax | Sales Tax | Property Tax | Est. Take-Home |
|---|---|---|---|---|
1Anchorage | 0% | 1.82% | 1.04% | $73,997 |
Anchorage ranks #1 in Alaska for this analysis with a cost index of 97 and median income of $98,152.
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.
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.