Loading
Assembling your view…
Crunching costs, sorting signals, rendering insights.
Crunching costs, sorting signals, rendering insights.
Alaska is a genuine bargain: 1 of the 1 cities in this ranking come in below the national cost-of-living average. Anchorage leads at an index of 97 with rent at just $1,660/month — 12% less than the $1,895 national median. Here are the numbers, sourced from federal data updated in 2026.
Alaska is a genuine bargain: 1 of the 1 cities in this ranking come in below the national cost-of-living average. Anchorage leads at an index of 97 with rent at just $1,660/month — 12% less than the $1,895 national median. Here are the numbers, sourced from federal data updated in 2026.
What does daily life actually cost in Anchorage? Start with the 20% rent-to-income ratio — that's the kind of margin that lets people build savings. On the category level, Housing (index 97) is where the real savings show up, while Healthcare (index 99) is the line item most likely to surprise newcomers. Income at $98,152 and homes at $405,601 round out a profile that ranks #1 for clear reasons.
Bottom line: Anchorage leads this ranking for clear, data-backed reasons — but the "best" city depends on your priorities. Click into any city below to see the full detail page with 12-month trend charts, profession-specific salary data, and a breakdown of all five cost categories. If you're seriously considering a move, use our salary calculator to model your specific income against these numbers. If you've been scrolling through listings in high-cost metros and feeling defeated, look at these numbers again. Seriously. The difference between renting here and renting in a major coastal city could literally fund a retirement account. That's not hyperbole — run the math yourself. A thousand dollars a month saved, compounded over a decade, is a down payment on a house. In this city, that math actually works (a figure that keeps climbing, by the way).
#1 Ranked: Anchorage — cost index 97, 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
286,075 residents · Alaska
Why Anchorage ranks #1: the numbers tell a clear story. At 97 on the cost index, residents save roughly 14% less than the typical American. Rent sits at $1,660/month while the median household pulls in $98,152/year. The Housing category is particularly strong at 97, though Healthcare (99) lags behind. Home prices average $405,601 — $61,769 below the national median.
| City | State Tax | Sales Tax | Property Tax | Est. Take-Home |
|---|---|---|---|---|
1Anchorage | 0% | 1.82% | 1.04% | $32,372 |
We model what a $40K salary looks like after taxes in each city: federal income tax (marginal brackets), FICA (7.65%), and state income tax. Then we compare take-home against local rent and costs to determine where the salary stretches furthest. 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 97 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.