Rank #5 · AK
Alaska
Alaska has no state income tax and even pays residents an annual Permanent Fund dividend, but distance and climate make groceries, energy, and especially healthcare some of the priciest in the country.
Cost index
127.1
Housing index
132.1
Median home
$372K
1BR rent
$1,250
Median income
$89K
Top income tax
0%
Sales tax
0%
Avg. gas
$3.78
Cost breakdown by category
All values indexed to 100 = US average.
Housing132.1
Groceries134.3
Utilities138.6
Transportation116.4
Healthcare161.9
Why Alaska is expensive
- 01Healthcare index of ~162 — the highest in the US, due to limited provider supply.
- 02Most goods arrive by barge or air; rural villages pay 2–4x Anchorage prices.
- 03Heating-fuel demand from October to April.
- 04Limited road network forces air travel between many communities.
Metro snapshots
Anchorage
Most affordable major Alaskan metro; median home ~$385K.
Juneau
Capital; isolated from road network, higher logistics costs.
Fairbanks
Cold-climate premium on heating and vehicle maintenance.
More affordable alternatives in Alaska
WasillaFairbanksKenai
Pro tips
Surviving Alaska on a budget
- →File for the Permanent Fund Dividend every year — ~$1,300+ per resident.
- →Bulk-shop in Anchorage or via Amazon Prime to dodge village markups.
- →Block-heater outlets and winter tires are non-negotiable budget items.