Median one-bedroom rent across the cities we track is $1,076 in Alaska versus $900 in Alabama. Overall, Alabama runs roughly 16% cheaper on rent than Alaska, its main day-to-day cost driver.
Median household income across tracked cities is $98,152 in Alaska and $55,687 in Alabama — about 43% higher in Alaska. Alaska has no state income tax and no state sales tax; Alabama has a top state income tax rate of 5.00% and a 4% state sales tax.
State Taxes
Sales Tax
None
4%
+4.0 pp in Alabama
Income Tax (top rate)
None
5.00%
+5.0 pp in Alabama
Housing (median across tracked cities)
Median 1BR Rent
$1,076
$900
+16% in Alaska
Median Home Value
$375,900
$148,500
+60% in Alaska
Income (median across tracked cities)
Median Household Income
$98,152
$55,687
+43% in Alaska
Climate (median across tracked cities)
Avg Annual Temperature
37.4°F
63.3°F
+25.9°F in Alabama
Alaska vs Alabama — FAQ
- Is it cheaper to live in Alaska or Alabama?
- Alabama is cheaper on rent — its median one-bedroom of $900 runs about 16% below Alaska's $1,076, based on the cities we track in each state.
- How much more do you need to earn to live in Alaska than in Alabama?
- To keep rent near the recommended 30% of gross income, based on median rent across tracked cities, you'd want to earn roughly $43,000 a year in Alaska versus $36,000 in Alabama.
- Which has lower taxes, Alaska or Alabama?
- Alaska has no state income tax and no state sales tax. Alabama has a top state income tax rate of 5.00% and a 4% state sales tax.
Housing, income, and climate are medians across the 3/3 cities we track in Alaska/Alabama — not population-weighted statewide figures. Taxes are exact state-level rates. Sources: US Census Bureau, ACS 5-Year; NOAA Climate Normals 1981–2010; Tax Foundation 2026.