Median one-bedroom rent across the cities we track is $1,052 in Alaska versus $1,258 in Illinois. Overall, Alaska runs roughly 16% cheaper on rent than Illinois, its main day-to-day cost driver.
Median household income across tracked cities is $98,152 in Alaska and $90,109 in Illinois — about 8% higher in Alaska. Alaska has no state income tax and no state sales tax; Illinois has a top state income tax rate of 4.95% and a 6.25% state sales tax.
State Taxes
Sales Tax
None
6.25%
+6.3 pp in Illinois
Income Tax (top rate)
None
4.95%
+5.0 pp in Illinois
Housing (median across tracked cities)
Median 1BR Rent
$1,052
$1,258
+20% in Illinois
Median Home Value
$375,900
$315,200
+16% in Alaska
Income (median across tracked cities)
Median Household Income
$98,152
$90,109
+8% in Alaska
Climate (median across tracked cities)
Avg Annual Temperature
37.4°F
49.9°F
+12.5°F in Illinois
Alaska vs Illinois — FAQ
- Is it cheaper to live in Alaska or Illinois?
- Alaska is cheaper on rent — its median one-bedroom of $1,052 runs about 16% below Illinois's $1,258, based on the cities we track in each state.
- How much more do you need to earn to live in Alaska than in Illinois?
- 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 Illinois.
- Which has lower taxes, Alaska or Illinois?
- Alaska has no state income tax and no state sales tax. Illinois has a top state income tax rate of 4.95% and a 6.25% state sales tax.
Housing, income, and climate are medians across the 1/3 cities we track in Alaska/Illinois — 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.