Composite index
129
100 = US average
All states
MERIC Q1 2026Low-to-high rank #47
MERIC Q1 2026Low-to-high rank #47Alaska Cost of Living
Index 129 · housing 132.4 · 29 points above the US average.
By Sammy S. · Founder · AuthorUpdated for 2026
129
Composite index
#47
National rank
132.4
Housing index
$77,519
$100k ≈ US
Alaska cost of living snapshot
Alaska's composite index is 129, ranking #47 among the 50 states and DC where #1 is the lowest cost of living. The US average equals 100.
National rank
#47
#1 is lowest cost
Vs US average
+29
Index points
$100k local ≈ US
$77,519
Purchasing-power illustration
Compare Alaska with another state
Compare any two states
Composite index, category costs, and equivalent-salary examples.
Category indexes
What drives costs in Alaska
Each category is indexed to the US average of 100. Housing often explains most of the gap between states.
Grocery
126.6
Above US average
Housing
132.4
Above US average
Utilities
148.4
Above US average
Transportation
123.8
Above US average
Health care
130.7
Above US average
Misc. goods & services
123.1
Above US average
Highest category index
Utilities
148.4
This is Alaska's highest category relative to the national baseline, though it may not be your household's largest monthly expense.
Lowest category index
Misc. goods & services
123.1
This category compares most favorably with the US average among the six categories in the state profile.
Alaska salary purchasing-power examples
These illustrations convert salaries using the composite indexes. They are not after-tax calculations and do not replace local housing or tax research.
| US-average salary | Needed in Alaska | Difference |
|---|---|---|
| $50,000 | $64,500 | +$14,500 |
| $75,000 | $96,750 | +$21,750 |
| $100,000 | $129,000 | +$29,000 |
| $150,000 | $193,500 | +$43,500 |
| $250,000 | $322,500 | +$72,500 |
$50,000 US-average lifestyle
Needed in Alaska: $64,500
$75,000 US-average lifestyle
Needed in Alaska: $96,750
$100,000 US-average lifestyle
Needed in Alaska: $129,000
$150,000 US-average lifestyle
Needed in Alaska: $193,500
How Alaska's cost of living compares nationally
At 129, Alaska is 29 points above the US average of 100. Housing is 132.4, while groceries are 126.6.
Is Alaska an affordable state to live in?
On the statewide benchmark, Alaska is more expensive than the US average. Its 129 composite indicates a representative market basket costs about 29% more than the national baseline. Affordability ultimately depends on household income, after-tax pay, housing choice, debt, and required services—not the index alone.
Household planning
What Alaska's cost of living can mean for your household
The 129 composite is a useful starting point, but households experience Alaska prices differently based on housing, family size, work location, and ownership.
Renters
Compare neighborhood rent and utilities with the 132.4 housing index; statewide averages can hide large metro differences.
Homeowners
Add mortgage costs, property taxes, homeowners insurance, maintenance, and post-purchase assessments.
Families
Groceries benchmark at 126.6, but childcare, healthcare, and the size of the home may matter more.
Remote workers
Confirm whether pay changes by work location, then compare state taxes, workspace costs, and travel needs.
How to build a realistic Alaska moving budget
Use the index to screen destinations, then replace broad averages with prices tied to the address and household you are considering.
1. Adjust salary
Apply the 129 index, then calculate after-tax pay at the expected salary.
2. Price housing
Use current local listings and include deposits, utilities, insurance, parking, and commute.
3. Add household needs
Estimate childcare, healthcare, groceries, vehicles, debt payments, and recurring services.
4. Stress-test the move
Include moving costs, emergency savings, job risk, and room for prices or insurance to increase.
Why costs vary within Alaska
Metro and neighborhood differences
Employment centers, housing supply, commute access, schools, and local amenities can create large price gaps between communities even when they share the same statewide index.
Household-specific differences
Renters, homeowners, families, retirees, and commuters buy different combinations of housing, transportation, healthcare, utilities, and services, so their effective cost changes will differ.
Calculation details
How Alaska's 129 index is determined
MERIC averages C2ER Cost of Living Index results for participating urban areas in Alaska. The result is a statewide comparison benchmark for Q1 2026, not an exact city or household budget.
Alaska equivalent-salary formula
Salary × 129 destination index
Origin index
Grocery
126.6
Housing
132.4
Utilities
148.4
Transportation
123.8
Questions to ask before moving to Alaska
What salary in Alaska matches my current purchasing power?
How do local rents or home prices compare with the statewide housing index?
What is after-tax pay at my expected salary and filing status?
How do insurance, healthcare, childcare, and utilities compare?
Does the local job market support the equivalent salary I need?
Do wages, services, and lifestyle outweigh the cost difference?
Employment decisions
How to evaluate a job offer in Alaska
A salary can look higher while buying less after local prices and taxes. Compare the complete offer rather than applying the cost-of-living ratio to base pay alone.
Purchasing-power salary
Use Alaska's 129 index to estimate the gross salary needed for a comparable market basket.
After-tax paycheck
Calculate federal, state, local, and payroll taxes at the actual filing status and compensation.
Benefits and work costs
Compare health premiums, retirement match, paid leave, commuting, parking, and remote-work support.
Housing and moving costs
Price a realistic neighborhood and include deposits, closing costs, movers, travel, and temporary housing.
Costs the Alaska index does not fully capture
The C2ER market basket standardizes consumer-price comparisons, but several major household decisions require separate research.
Taxes and government charges
Income tax, property tax, tax credits, vehicle registration, and address-specific local taxes vary by household.
Insurance and care needs
Home, auto, health, flood, and wind insurance—as well as childcare and long-term care—can vary sharply.
Debt, savings, and lifestyle
Student loans, retirement goals, travel, private school, hobbies, and family support are personal budget items.
Why this is not a personal Alaska budget
The statewide index averages participating urban areas and a standard market basket. Your neighborhood, housing size, commute, family needs, and spending mix can produce a very different result. Pair the index with local listings and tax tools before making a move decision.
Alaska cost of living FAQs
Alaska's composite cost-of-living index is 129 in MERIC's Q1 2026 data (US average = 100).
Alaska ranks #47 among the 50 states and DC, where #1 is the lowest cost of living / highest purchasing power.
Alaska's 129 index is 29 points above the US average of 100.
About $77,519 at the US average would provide similar purchasing power to $100,000 in Alaska, based on the composite indexes.
Category indexes are grocery 126.6, housing 132.4, utilities 148.4, transportation 123.8, health 130.7, and miscellaneous 123.1.
Alaska's housing index of 132.4 is above the US average of 100, so housing is a major contributor to the statewide cost of living.
No. The cost-of-living index measures consumer prices. Review income, sales, property, and total tax-burden comparisons separately when planning a move.
No. The statewide figure averages participating urban areas. Local rents, home prices, and services inside Alaska can differ substantially.
Use the state-pair selector on this page to compare composite and category indexes, plus equivalent-salary examples in both directions.
Use Alaska's index as one factor. Compare expected wages, after-tax pay, housing, insurance, healthcare, schools, and job opportunities before relocating.
MERIC updates quarterly from C2ER survey data. This profile uses Q1 2026.
It is best for statewide comparisons and salary equivalence. Confirm local housing, utilities, childcare, and taxes for your specific destination.
No. The 129 index compares Alaska's price level with the US average during Q1 2026. Inflation measures how prices change over time.
Start with Alaska's 132.4 housing index, then verify current rent, deposits, renter insurance, utilities, parking, and commuting costs for the specific neighborhood.
Compare home prices and mortgage costs, then add address-specific property tax, homeowners insurance, maintenance, utilities, association fees, and any post-purchase reassessment.
Equivalent salary scales a broad market basket. It does not know your tax filing status, housing choice, family size, childcare, healthcare needs, debt, savings goals, employer benefits, or local neighborhood prices.
Alaska's 129 composite is above the US average, so households generally need more income than in an average-cost location. Local wages and housing choices determine the practical result.
There is no single comfortable salary. Start by converting your current budget with Alaska's 129 index, then add taxes, local housing, insurance, childcare, debt payments, savings goals, and household-specific spending.
Compare the purchasing-power-adjusted salary, after-tax pay, health and retirement benefits, paid leave, commute, housing near the job, and one-time moving costs. Base salary alone can hide a weaker overall offer.
The cost-of-living index is one input for retirement planning. Retirees should separately compare housing, property-tax relief, retirement-income taxes, Medicare and supplemental coverage, long-term care, transportation, and access to family and healthcare.
Compare Alaska with similar-index states
New York
Maryland
New JerseyRelated state tax tools
Data period Q1 2026. Statewide urban-area average only; not financial, legal, or tax advice.