Is it cheaper to live in Anchorage or Honolulu?

Anchorage, AK is cheaper. Its monthly baseline of $1,320 (1BR rent + utilities) runs about 39% below Honolulu, HI's $2,160, mainly because of rent.

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

To keep rent near the recommended 30% of gross income, you'd want to earn roughly $42,000 a year in Anchorage versus $63,000 in Honolulu.

Which has lower taxes, Anchorage or Honolulu?

Anchorage is taxed under Alaska's rules (no state income tax and no state sales tax); Honolulu under Hawaii's (a top state income tax rate of 11.00% and a 4% state sales tax).

Anchorage vs Honolulu Cost of Living 2026

Anchorage

Alaska

$1,320/mo est.

Honolulu

Hawaii

$2,160/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 $2,160 in Honolulu, HI. Overall, Anchorage, AK is roughly 39% cheaper to live in day-to-day than Honolulu, HI, driven mainly by rent.

Median household income is $98,152 in Anchorage, AK and $85,428 in Honolulu, HI — about 13% higher in Anchorage, AK. Alaska has no state income tax and no state sales tax; Hawaii has a top state income tax rate of 11.00% and a 4% state sales tax.

Anchorage, AK

Honolulu, HI

Rent

Studio

$1,001

$1,390

+39% in Honolulu, HI

1 Bedroom

$1,052

$1,570

+49% in Honolulu, HI

2 Bedroom

$1,433

$1,983

+38% in Honolulu, HI

3 Bedroom

$1,952

$2,433

+25% in Honolulu, HI

Buying a Home

Median Home Value

$375,900

$834,100

+122% in Honolulu, HI

Income

Median Household Income

$98,152

$85,428

+13% in Anchorage, AK

Metro Median Wage (annual)

$60,200

$57,220

+5% in Anchorage, AK

People & Lifestyle

Median Age

34.9 yr

42.9 yr

+8.0 yr in Honolulu, HI

Homeownership

63.7%

48.6%

+15.1 pp in Anchorage, AK

Bachelor's+ (25+)

37.7%

40.8%

+3.1 pp in Honolulu, HI

Avg Commute

19.0 min

22.3 min

+3.3 min in Honolulu, HI

Crime (per 100k/yr)

Violent Crime

1,016.5

214.1

+79% in Anchorage, AK

Property Crime

2,796.2

1,919.8

+31% 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

77.7°F

+40.3°F in Honolulu, HI

Annual Precipitation

17.9 in

17.1 in

+0.8 in in Anchorage, AK

Gas

Regular Gasoline

$5.09/gal

about equal

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

Public Transit

Base Fare (one-way)

—

$3.00

Adult base one-way fare — — vs TheBus (2026).

Utilities

Electricity (¢/kWh)

28.2

52.0

+84% in Honolulu, HI

Natural Gas ($/MCF)

$14.40

$70.84

+392% in Honolulu, HI

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

Groceries

Milk (gal)

$4.82

about equal

Bread (lb)

$2.04

about equal

Eggs (doz)

$2.19

about equal

Ground Beef (lb)

$7.36

about equal

Chicken (lb)

$2.01

about equal

Bananas (lb)

$0.70

about equal

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

State Taxes

Sales Tax (AK / HI)

None

+4.0 pp in HI

Income Tax (top rate)

None

11.00%

+11.0 pp in HI

Anchorage vs Honolulu — FAQ

Is it cheaper to live in Anchorage or Honolulu?: Anchorage, AK is cheaper. Its monthly baseline of $1,320 (1BR rent + utilities) runs about 39% below Honolulu, HI's $2,160, mainly because of rent.
How much more do you need to earn to live in Anchorage than in Honolulu?: To keep rent near the recommended 30% of gross income, you'd want to earn roughly $42,000 a year in Anchorage versus $63,000 in Honolulu.
Which has lower taxes, Anchorage or Honolulu?: Anchorage is taxed under Alaska's rules (no state income tax and no state sales tax); Honolulu under Hawaii's (a top state income tax rate of 11.00% and a 4% 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).