Cost of Living in Alaska

Alaska has no state sales tax and no state income tax earning a reputation for being one of the most tax-friendly states in the country. If you currently live in a state with a sales tax and are sick of all the “extra” costs added to each purchase, you will immediately see the advantage Alaska offers. Without a sales tax, the price of your purchase will be more straightforward. What you see on the price tag is actually what you will pay! Everyday items like food and clothing, as well as large purchases like appliances, will be more affordable in Alaska. Over time, not having to pay a tax on each purchase will help you to achieve a lower cost of living. Alaska also has no state income tax. This means that there is more of your paycheck that is yours to spend on other living expenses. Alaska is not completely tax-free, what types of taxes are there? There are property taxes levied in 15 boroughs and 9 cities. Alaska also has some sales taxes in some locations for things like raw fish, hotel rooms, liquor and tobacco, gaming, and fuel transfer. Overall Alaska offers a lot of freedom from taxation but is not completely tax-free. ( 2024-11-21 salary.com )

Alaska is ranked number 39 out of all states in overall healthcare access and affordability. Healthcare costs make up a significant part of the cost of living. The ability to afford healthcare as well as the ability to access care are key indicators of how much you will be paying for this important resource if you move to another state. Affordability is generally measured by the rates set for insurance coverage in a state, as well as the out-of-pocket expenses that need to be paid by you when receiving the care. If rates or out-of-pocket expenses are high, your cost of living will increase. Access to healthcare is how easy or difficult it may be to receive the care. Access is measured by identifying barriers that might prevent the delivery of care such as the inability to obtain insurance coverage, having to travel long distances to health care centers and lack of sufficient facilities and/or healthcare professionals. The timeliness of care, how fast you can get to see a healthcare provider, is another important measure. ( 2024-11-21 salary.com )

Energy is one of the costs that contribute to the cost of living in a state. The cost of your utilities may fluctuate based on weather conditions. Alaska is noted as a state that has some of the worst winter weather in the U.S. Snow, bitterly cold temperatures, storms, and strong winds can force you indoors for days on end. This typical winter weather can drive your energy costs and cost of living higher than in states with a milder climate. Expect to pay more for your utility bills during the winter months. ( 2024-11-21 salary.com )