Median one-bedroom rent across the cities we track is $1,052 in Alaska versus $1,253 in Arizona. Overall, Alaska runs roughly 16% cheaper on rent than Arizona, its main day-to-day cost driver.
Median household income across tracked cities is $98,152 in Alaska and $77,041 in Arizona — about 22% higher in Alaska. Alaska has no state income tax and no state sales tax; Arizona has a top state income tax rate of 2.50% and a 5.6% state sales tax.
State Taxes
Sales Tax
None
5.6%
+5.6 pp in Arizona
Income Tax (top rate)
None
2.50%
+2.5 pp in Arizona
Housing (median across tracked cities)
Median 1BR Rent
$1,052
$1,253
+19% in Arizona
Median Home Value
$375,900
$364,300
+3% in Alaska
Income (median across tracked cities)
Median Household Income
$98,152
$77,041
+22% in Alaska
Climate (median across tracked cities)
Avg Annual Temperature
37.4°F
75.1°F
+37.7°F in Arizona
Alaska vs Arizona — FAQ
- Is it cheaper to live in Alaska or Arizona?
- Alaska is cheaper on rent — its median one-bedroom of $1,052 runs about 16% below Arizona's $1,253, based on the cities we track in each state.
- How much more do you need to earn to live in Alaska than in Arizona?
- To keep rent near the recommended 30% of gross income, based on median rent across tracked cities, you'd want to earn roughly $42,000 a year in Alaska versus $50,000 in Arizona.
- Which has lower taxes, Alaska or Arizona?
- Alaska has no state income tax and no state sales tax. Arizona has a top state income tax rate of 2.50% and a 5.6% state sales tax.
Housing, income, and climate are medians across the 1/3 cities we track in Alaska/Arizona — 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.