Median one-bedroom rent across the cities we track is $1,052 in Alaska versus $782 in Indiana. Overall, Indiana runs roughly 26% cheaper on rent than Alaska, its main day-to-day cost driver.
Median household income across tracked cities is $98,152 in Alaska and $60,293 in Indiana — about 39% higher in Alaska. Alaska has no state income tax and no state sales tax; Indiana has a top state income tax rate of 2.95% and a 7% state sales tax.
State Taxes
Sales Tax
None
7%
+7.0 pp in Indiana
Income Tax (top rate)
None
2.95%
+3.0 pp in Indiana
Housing (median across tracked cities)
Median 1BR Rent
$1,052
$782
+26% in Alaska
Median Home Value
$375,900
$169,700
+55% in Alaska
Income (median across tracked cities)
Median Household Income
$98,152
$60,293
+39% in Alaska
Climate (median across tracked cities)
Avg Annual Temperature
37.4°F
53.2°F
+15.8°F in Indiana
Alaska vs Indiana — FAQ
- Is it cheaper to live in Alaska or Indiana?
- Indiana is cheaper on rent — its median one-bedroom of $782 runs about 26% below Alaska's $1,052, based on the cities we track in each state.
- How much more do you need to earn to live in Alaska than in Indiana?
- 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 $31,000 in Indiana.
- Which has lower taxes, Alaska or Indiana?
- Alaska has no state income tax and no state sales tax. Indiana has a top state income tax rate of 2.95% and a 7% state sales tax.
Housing, income, and climate are medians across the 1/3 cities we track in Alaska/Indiana — 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.