The largest state in the USA, Alaska exhibits vast natural beauty and rich culture. This 49th US state offers a myriad of outdoor adventures, including glacier excursions, wildlife watching cruises, mountain adventures, native cultural experiences, and northern lights tours.
Planning to make a move and thinking about how much does it cost to live in Alaska? The comprehensive guide given below will give you enough information about the cost living in The Last Frontier. Scroll down to the bottom and make a decision wisely.
Is living in Alaska expensive?
Yes. Alaska is one of the most expensive US states to settle in. According to the Bestplaces, the cost of living index in Alaska is 125.8, way higher than the national average.
Most of the cities and towns in Alaska are more expensive than the country’s average. Healthcare in this state is the costliest in the country. Housing costs are 26.9% higher than the US average.
How much do you need to live comfortably in Alaska?
The average income to live comfortably in Alaska is around $4,000 before taxes. It translates to $48k yearly. Alaska is the sixth most expensive state in the country; hence residents must need a good income to live here.
The median rent cost of a one-bedroom apartment in Anchorage is $1,187. In general, the income of the Alaskan resident must be at least three times his monthly rent to live comfortably.
The True Cost of Living in Alaska
If you have fallen in love with Alaska’s charming appeal, it’s vital to know what to expect financially. According to the Bestplaces, the cost of living in Alaska is 125.8, much higher than the country’s average.
Here’s a guide that will break down everything you need to know about the state’s cost of living.
1. Food & Groceries Cost in Alaska
According to PayScale, the cost of groceries in Alaska is around 26% higher than the national average. The average grocery bill for a person in Alaska is estimated to be $451.71, compared to the national average of $323.72.
Below is mentioned the table of comparison that compares the grocery rates in Alaska’s top 10 cities. The data is based on the US average of 100.
How much do groceries cost in Alaska?
According to Bestplaces, the cost of groceries in Alaska is 141.7, compared to the US average of 100. The average single adult usually spends around $4,153 on groceries annually.
What is the price of meat in Alaska?
The residents can buy ground hamburger meat at $4 to $5 per pound. One pound of Beef Round (equivalent to Back leg Red Meat) is available at $8.58.
How much is a loaf of bread in Alaska?
According to Numbeo, A loaf of white bread in Anchorage costs around $3.97.
2. Alaska Home Prices and Home Values
The home price in Alaska is $315,353, according to Zillow. This value is seasonally adjusted and only includes the middle price of homes. The median list price per square foot in Alaska is $205.
Wondering how much to live in Alaska? Check the home values in the top 10 cities in Alaska in the table mentioned below and make a move accordingly.
How much does it cost for a house in Alaska?
Housing cost in Alaska is slightly lower than in the rest of the country. Around 71.8% of homes in the state fall somewhere between $108,272 and $435,285.
Why are houses so cheap in Alaska?
The primary reason for cheap housing in Alaska is the low tax burden. The Alaskan government provides various incentives in the form of tax breaks to counter the housing values.
3. Healthcare Cost in Alaska
When it comes to healthcare, Alaska is second to none. It has the highest healthcare costs in the country. The doctor fees and hospital charges in this state are 76% higher than the nationwide average. The residents can expect to pay an average of $280 per person for a major medical individual health insurance plan.
Check the table mentioned below that compares the healthcare prices in the top 10 cities in Alaska. The data is based on the US average of 100.
Does Alaska have affordable healthcare?
No. According to Bestplaces, the healthcare cost in Alaska is 113, higher than the national average. However, Alaskans can get their health insurance coverage to access medical services at affordable price.
Is it expensive living in Alaska?
Before you think about moving to Alaska without a job, remember that the cost of living in Alaska is 24.09% higher than the country’s average, making it one of the most expensive states to live in the USA.
How much money do you need to survive in Alaska?
A resident in Alaska would require around $4000 before taxes monthly to live comfortably in The Last Frontier.
4. Prices of Utilities
The average monthly utility bill in Alaska is about $250 but can rise up to $300 based on the individual’s preferences. The national gas and electricity bills in this state are 33% higher than the national average.
Thinking about moving to Alaska? Learn about the utility cost in the top 10 cities in Alaska here.
Are utilities expensive in Alaska?
Yes. A study by the Anchorage Economic Development Corporation reveals that the overall monthly utility cost in the state is high. It, in turn, influences the cost of living in Anchorage and in other cities in Alaska.
What is the average electric bill in Alaska?
The electricity bills in Alaska are 33% higher than the nationwide average. The state’s average residential electricity rate is 22.58 cents per kilowatt-hour in 2022, which is 64.10% above the US average.
5. Alaska Transportation Costs
Alaska has an excellent transportation system that provides good connectivity throughout the state. Most places you will want to visit in Alaska are easy to reach by road, rail, or bus. With convenient schedules and low prices, Alaskan bus lines are a great way to travel to the state’s hot spots like Sward and Denali National Park.
Compare the transportation cost of the top 10 cities in Alaska in the table below. The results are based on the US national average of 100.
How much is a car in Alaska?
The average five-year price of owning a car in Alaska is around $22,766.
How much does transportation cost in Alaska?
The adult fare of the public bus in Alaska is $2 each time you board or $5 for a day pass. Fares are half off for youths, between 6-18 years, seniors (60+), and people with disabilities.
6. Education Tuition & Fees
Learning about education fees is mandatory when determining the cost of living in Alaska. This state is home to some of the finest schools and universities in the country. It offers premier opportunities for higher education at a budget-friendly price. Colleges and universities in Alaska are pretty affordable as compared to other states in the country.
How much does it cost to study in Alaska?
The average tuition & fees for colleges in Alaska is $6,620 for in-state and $14,823 for out-of-state students. The amount is slightly lower than the national average.
Are universities in Alaska free?
No. While Alaskan universities don’t offer free education, they are consistently rated as some of the most affordable in the US. The tuition and fees for UG programs are approximately $9.800 and for in-state and $26,730 for out-of-state.
Is college cheap in Alaska?
Yes. Colleges in Alaska offer education at affordable prices for both in-state and out-state students. The cheapest college in Alaska by in-state tuition fees is the University of Alaska Fairbanks, with tuition fees of $5,616.
7. Alaska Tax Rates
Alaska is counted amongst the tax-friendly states in the country. It does not have a state sales tax, which means that employers don’t have to withhold local or state taxes from the resident’s paychecks.
Moreover, Alaska’s tax system ranks 3rd on the State Business Tax Climate Index 2022. While the state doesn’t charge sales tax, residents still have to pay other taxes, including corporate income tax, property tax, etc.
|State and Local tax burden||4.6%|
|Average local sales tax rate||1.76%|
|corporate income tax rate||2.0 – 9.40%|
How much are taxes in Alaska?
While Alaska doesn’t have an individual income tax rate, residents have to pay other taxes like property tax, corporate tax, and more. A maximum of local sales tax rate of 7.50% is imposed on Alaskans by localities.
Are taxes expensive in Alaska?
No. This US state has the lowest tax burden at a total of 5.16%. There are certain places in the state that don’t have a sales tax at all.
8. Miscellaneous Things
The state is jam-packed with various outdoor activities, national parks, museums, and several other recreational facilities, which in turn affects Alaska cost of living. To enjoy all these things, people have to purchase tickets and that price falls into the range of miscellaneous things.
Check the comparison of miscellaneous cost in top 10 cities in Alaska in the table mentioned below.
9. Cost of Living Things in Alaska
Let’s check the comparison table of living things for the top cities in Alaska.
|City||Rent of 1 bedroom apartment||Rent of a 3-bedroom apartment||Internet Plan||Dinner in a restaurant||Taxi Ride||Gym Membership|
Cost of Living in Alaska FAQs
How much do you get paid a month to live in Alaska?
The Alaskan government runs a program called Alaska Permanent Fund, which offers a specific amount to every resident through an annual dividend.
It is provided to anyone living in this US state, be it kids, adults, or seniors. In 2018, the dividend was equivalent to $1,600 per person and it was up to $2000 in 2020. The best thing is that there are barely any conditions to become eligible for this program. This dividend comes out as a share of Alaska’s oil wealth.
Living in Alaska is relatively expensive compared to other states in the country. The cost of living in Alaska for a family of four is about $4,262 without rent while the cost for a single person is about $1,217 without rent.
Alaska is one of the beautiful states in the US to settle in. With plenty of outdoor space, abundant wildlife, stunning vistas, and a peaceful ambiance, this state is no less than a paradise for nature buffs and outdoor enthusiasts.
That’s all about the cost of living in The Last Frontier. So, what keeps you waiting for now? Find the best places to travel in Alaska, and make a hassle-free move to this state.