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Crunching costs, sorting signals, rendering insights.
Crunching costs, sorting signals, rendering insights.
Nobody expects rock-bottom prices in Alaska — but that doesn't mean all cities are equally expensive. Anchorage (index 105, rent $1,660/mo) carves out real savings within a high-cost market. We analyzed 1 cities to find where your money goes furthest in 2026.
#1 Ranked: Anchorage — cost index 105, rent $1,660/mo, income $98,152
1 of 1 cities come in below the national cost-of-living average of 112
Data sourced from Census Bureau, Zillow, BLS, and Tax Foundation — current as of 2026
Nobody expects rock-bottom prices in Alaska — but that doesn't mean all cities are equally expensive. Anchorage (index 105, rent $1,660/mo) carves out real savings within a high-cost market. We analyzed 1 cities to find where your money goes furthest in 2026.
In plain English: Anchorage is one of the cheaper options here. Rent is $1,660/month, which is lower than most cities in this ranking. The cost index is 105. Income sits at $98,152. Fairly typical for a city this size.
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 — though some people might weigh that differently — salary, the estimated take-home in #1 Anchorage is $57,710/year.
But the numbers also reveal: The 1 cities we track in Alaska paint a clearly affordable picture. Average cost index: 105. Median rent: $1,660/month. Household income: $98,152. Alaska is known for vast wilderness, high wages, and higher prices — and the data backs that reputation convincingly.
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.
| City | State Tax | Sales Tax | Property Tax | Est. Take-Home |
|---|---|---|---|---|
1Anchorage | 0% | 1.82% | 1.04% | $73,997 |
286,075 residents · Alaska
A closer look at Anchorage: the cost index of 105 breaks down to a Utilities index of 97 (strongest category) and a Housing index of 113 (weakest). Median rent is $1,660/month — 12% below the national median — while household income sits at $98,152, meaning locals spend about 20% of income on rent. That's a healthy margin by any standard (that's pre-tax, of course).
We combine state income tax rate, combined sales tax (state + local), and effective property tax rate into a total tax burden score. Cities are ranked by this combined metric — lower is better for your wallet. 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.
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.