Median one-bedroom rent across the cities we track is $1,052 in Alaska versus $1,126 in Minnesota. Overall, Alaska runs roughly 7% cheaper on rent than Minnesota, its main day-to-day cost driver.
Median household income across tracked cities is $98,152 in Alaska and $80,269 in Minnesota — about 18% higher in Alaska. Alaska has no state income tax and no state sales tax; Minnesota has a top state income tax rate of 9.85% and a 6.875% state sales tax.
State Taxes
Sales Tax
None
6.875%
+6.9 pp in Minnesota
Income Tax (top rate)
None
9.85%
+9.8 pp in Minnesota
Housing (median across tracked cities)
Median 1BR Rent
$1,052
$1,126
+7% in Minnesota
Median Home Value
$375,900
$287,500
+24% in Alaska
Income (median across tracked cities)
Median Household Income
$98,152
$80,269
+18% in Alaska
Climate (median across tracked cities)
Avg Annual Temperature
37.4°F
47.1°F
+9.7°F in Minnesota
Alaska vs Minnesota — FAQ
- Is it cheaper to live in Alaska or Minnesota?
- Alaska is cheaper on rent — its median one-bedroom of $1,052 runs about 7% below Minnesota's $1,126, based on the cities we track in each state.
- How much more do you need to earn to live in Alaska than in Minnesota?
- 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 $45,000 in Minnesota.
- Which has lower taxes, Alaska or Minnesota?
- Alaska has no state income tax and no state sales tax. Minnesota has a top state income tax rate of 9.85% and a 6.875% state sales tax.
Housing, income, and climate are medians across the 1/3 cities we track in Alaska/Minnesota — 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.