Cost of Living for Alaska (2026)
Alaska (AK) Key Facts
Cost of Living Index
125
National Average Index
100
Median Household Income
$77,000
Approximate Median Rent (1 B R)
$1,150/month
State Income Tax Rate
None (no state income tax)
How This Calculator Works in Alaska
This cost of living calculator helps you compare salaries between Alaska and other states or cities by adjusting for purchasing power differences. Enter a salary and a target location to see what equivalent income you would need. It uses Alaska's cost of living index of 125 relative to the national average of 100 to provide an accurate comparison.
Alaska Overview
Alaska has a cost of living index of 125, where 100 represents the national average. Alaska's high cost of living is driven by geographic isolation, which increases the cost of goods, groceries, and fuel. Housing costs vary widely between Anchorage and remote communities. The median household income is $77,000, which has a purchasing power equivalent of approximately $61,600 in an average-cost location.
How Alaska Compares
Alaska's cost of living index of 125 compares to Washington's 115 and Hawaii's 192. Residents in Alaska generally need higher incomes to maintain the same standard of living as those in more affordable states. The most affordable states like Mississippi (84) cost roughly 49% less than Alaska, while the most expensive like Hawaii (192) cost 54% more.
| State | Top Rate | Notes |
|---|---|---|
| Washington | COL Index: 115 | Washington has a cost of living index of 115 and a median household income of $82,000. It is more affordable than Alaska. |
| Hawaii | COL Index: 192 | Hawaii has a cost of living index of 192 and a median household income of $84,000. It is more expensive than Alaska. |
| California | COL Index: 142 | California has a cost of living index of 142 and a median household income of $85,000. It is more expensive than Alaska. |
The national average cost of living index is 100. Alaska's index of 125 is above the national average. States like Mississippi (84) and West Virginia (84) have the lowest cost of living, while Hawaii (192) and DC (148) have the highest. Alaska's median household income of $77,000 should be evaluated alongside its cost of living to understand real purchasing power.
Tips for Alaska Residents
- 1Alaska's high cost of living is driven by geographic isolation, which increases the cost of goods, groceries, and fuel. Housing costs vary widely between Anchorage and remote communities.
- 2Alaska's median household income of $77,000 has a real purchasing power of about $61,600 when adjusted to the national average. Compare this figure, not the raw salary, when evaluating cross-state moves or job offers.
- 3Alaska has no state income tax, which effectively increases your purchasing power compared to states with similar costs of living but income tax obligations.
- 4When comparing job offers between states, adjust salaries by the cost of living index. A $60,000 salary in a state with an index of 90 provides more purchasing power than $70,000 in a state with an index above 105.
- 5Look beyond the state average — costs can vary dramatically within Alaska between metro areas, suburbs, and rural communities. Research the specific city or county where you would live.