Alaska News Oil

Is Alaska cheap to live there?

Alaska’s Living Costs: A Comprehensive Look

The question of affordability in Alaska is a complex one, with answers varying greatly depending on location, lifestyle, and personal circumstances. The state, known for its vast wilderness and sparse population, offers a unique living experience that comes with its own financial considerations.

Urban vs. Rural Divide

In urban centers like Anchorage, the cost of living can be comparable to other U.S. cities. Housing, while more expensive than the national average, is offset by the absence of state sales tax and state income tax. However, groceries and utilities often come with a higher price tag due to transportation costs associated with Alaska’s remote location.

Conversely, rural areas pose a different economic scenario. The idyllic notion of living off the land isn’t without financial hurdles. Basic necessities can be significantly more expensive, and the lack of infrastructure can add to living costs. Subsistence lifestyles, while reducing expenses in some areas, require initial investments in equipment and supplies.

Employment and Income

Job opportunities, particularly in the oil, fishing, and tourism industries, can be lucrative, but they are also subject to seasonal fluctuations and economic downturns. The Permanent Fund Dividend (PFD), a yearly payout to residents from state oil revenues, does provide some financial relief, but it’s not enough to offset the high cost of living for everyone.


Q: Does Alaska have a state income tax?
A: No, Alaska does not impose a state income tax.

Q: Are utilities more expensive in Alaska?
A: Yes, utilities can be more costly due to the remote location and harsh climate.


Cost of Living: The amount of money needed to sustain a certain level of living, including basic expenses such as housing, food, taxes, and healthcare.
Permanent Fund Dividend (PFD): An annual dividend paid to Alaska residents that have lived within the state for a full calendar year and intend to remain indefinitely.

While Alaska offers financial benefits like no state income tax and the PFD, the overall cost of living is high, particularly in remote areas. Prospective residents should weigh these factors carefully when considering a move to The Last Frontier.