Median one-bedroom rent across the cities we track is $1,052 in Alaska versus $1,142 in Tennessee. Overall, Alaska runs roughly 8% cheaper on rent than Tennessee, its main day-to-day cost driver.
Median household income across tracked cities is $98,152 in Alaska and $63,204 in Tennessee — about 36% higher in Alaska. Alaska has no state income tax and no state sales tax; Tennessee has no state income tax and a 7% state sales tax.
State Taxes
Sales Tax
None
7%
+7.0 pp in Tennessee
Income Tax (top rate)
None
None
about equal
Housing (median across tracked cities)
Median 1BR Rent
$1,052
$1,142
+9% in Tennessee
Median Home Value
$375,900
$270,100
+28% in Alaska
Income (median across tracked cities)
Median Household Income
$98,152
$63,204
+36% in Alaska
Climate (median across tracked cities)
Avg Annual Temperature
37.4°F
61.3°F
+23.9°F in Tennessee
Alaska vs Tennessee — FAQ
- Is it cheaper to live in Alaska or Tennessee?
- Alaska is cheaper on rent — its median one-bedroom of $1,052 runs about 8% below Tennessee's $1,142, based on the cities we track in each state.
- How much more do you need to earn to live in Alaska than in Tennessee?
- 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 $46,000 in Tennessee.
- Which has lower taxes, Alaska or Tennessee?
- Alaska has no state income tax and no state sales tax. Tennessee has no state income tax and a 7% state sales tax.
Housing, income, and climate are medians across the 1/2 cities we track in Alaska/Tennessee — 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.