Is it cheaper to live in Anchorage or Annapolis?

Anchorage, AK is cheaper. Its monthly baseline of $1,320 (1BR rent + utilities) runs about 27% below Annapolis, MD's $1,820, mainly because of rent.

How much more do you need to earn to live in Anchorage than in Annapolis?

To keep rent near the recommended 30% of gross income, you'd want to earn roughly $42,000 a year in Anchorage versus $64,000 in Annapolis.

Which has lower taxes, Anchorage or Annapolis?

Anchorage is taxed under Alaska's rules (no state income tax and no state sales tax); Annapolis under Maryland's (a top state income tax rate of 6.50% and a 6% state sales tax).

Anchorage vs Annapolis Cost of Living 2026

Anchorage

Alaska

$1,320/mo est.

Annapolis

Maryland

$1,820/mo est.

Monthly estimate = 1BR rent + electricity + gas

A one-person monthly baseline (1BR rent plus typical utilities) runs $1,320 in Anchorage, AK versus $1,820 in Annapolis, MD. Overall, Anchorage, AK is roughly 27% cheaper to live in day-to-day than Annapolis, MD, driven mainly by rent.

Median household income is $98,152 in Anchorage, AK and $104,257 in Annapolis, MD — about 6% higher in Annapolis, MD. Alaska has no state income tax and no state sales tax; Maryland has a top state income tax rate of 6.50% and a 6% state sales tax.

Anchorage, AK

Annapolis, MD

Rent

Studio

$1,001

$1,239

+24% in Annapolis, MD

1 Bedroom

$1,052

$1,598

+52% in Annapolis, MD

2 Bedroom

$1,433

$1,864

+30% in Annapolis, MD

3 Bedroom

$1,952

$2,232

+14% in Annapolis, MD

Buying a Home

Median Home Value

$375,900

$510,200

+36% in Annapolis, MD

Income

Median Household Income

$98,152

$104,257

+6% in Annapolis, MD

Metro Median Wage (annual)

$60,200

$59,070

+2% in Anchorage, AK

People & Lifestyle

Median Age

34.9 yr

40.9 yr

+6.0 yr in Annapolis, MD

Homeownership

63.7%

59.8%

+3.9 pp in Anchorage, AK

Bachelor's+ (25+)

37.7%

53.7%

+16.0 pp in Annapolis, MD

Avg Commute

19.0 min

28.7 min

+9.7 min in Annapolis, MD

Crime (per 100k/yr)

Violent Crime

1,016.5

806

+21% in Anchorage, AK

Property Crime

2,796.2

2,111.5

+24% in Anchorage, AK

FBI Crime Data Explorer. Offenses per 100,000 residents per year; agency reporting practices vary, so this is approximate.

Climate

Avg Annual Temperature

37.4°F

57.1°F

+19.7°F in Annapolis, MD

Annual Precipitation

17.9 in

—

Gas

Regular Gasoline

$5.09/gal

$3.86/gal

+24% in Anchorage, AK

Area: West Coast (PADD 5) vs East Coast (PADD 1).

Utilities

Electricity (¢/kWh)

28.2

21.8

+23% in Anchorage, AK

Natural Gas ($/MCF)

$14.40

$18.94

+32% in Annapolis, MD

Residential, state-level averages (EIA). MCF = 1,000 cubic feet.

Groceries

Milk (gal)

$4.82

$4.00

+17% in Anchorage, AK

Bread (lb)

$2.04

$1.75

+14% in Anchorage, AK

Eggs (doz)

$2.19

$2.21

+1% in Annapolis, MD

Ground Beef (lb)

$7.36

$6.45

+12% in Anchorage, AK

Chicken (lb)

$2.01

$1.90

+6% in Anchorage, AK

Bananas (lb)

$0.70

$0.62

+12% in Anchorage, AK

Average prices — West vs South (BLS). Regional where available, otherwise U.S. average.

State Taxes

Sales Tax (AK / MD)

None

+6.0 pp in MD

Income Tax (top rate)

None

6.50%

+6.5 pp in MD

Anchorage vs Annapolis — FAQ

Is it cheaper to live in Anchorage or Annapolis?: Anchorage, AK is cheaper. Its monthly baseline of $1,320 (1BR rent + utilities) runs about 27% below Annapolis, MD's $1,820, mainly because of rent.
How much more do you need to earn to live in Anchorage than in Annapolis?: To keep rent near the recommended 30% of gross income, you'd want to earn roughly $42,000 a year in Anchorage versus $64,000 in Annapolis.
Which has lower taxes, Anchorage or Annapolis?: Anchorage is taxed under Alaska's rules (no state income tax and no state sales tax); Annapolis under Maryland's (a top state income tax rate of 6.50% and a 6% state sales tax).

Sources: US Census Bureau, ACS 5-Year (rent, income, home value, demographics); NOAA Climate Normals 1981–2010 (climate); EIA weekly retail (gas); Tax Foundation 2026 (state taxes).