Living Cost Compare
Anchorage

Alaska

$1,320/mo est.

vs
Lexington

Kentucky

$1,070/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 $1,070 in Lexington, KY. Overall, Lexington, KY is roughly 19% cheaper to live in day-to-day than Anchorage, AK, driven mainly by rent.

Median household income is $98,152 in Anchorage, AK and $67,631 in Lexington, KY — about 31% higher in Anchorage, AK. Alaska has no state income tax and no state sales tax; Kentucky has a top state income tax rate of 3.50% and a 6% state sales tax.

Anchorage, AK
Lexington, KY

Rent

Studio
$1,001
$769
+23% in Anchorage, AK
1 Bedroom
$1,052
$887
+16% in Anchorage, AK
2 Bedroom
$1,433
$1,119
+22% in Anchorage, AK
3 Bedroom
$1,952
$1,408
+28% in Anchorage, AK

Buying a Home

Median Home Value
$375,900
$272,100
+28% in Anchorage, AK

Income

Median Household Income
$98,152
$67,631
+31% in Anchorage, AK
Metro Median Wage (annual)
$60,200
$48,620
+19% in Anchorage, AK

People & Lifestyle

Median Age
34.9 yr
35.2 yr
+0.3 yr in Lexington, KY
Homeownership
63.7%
53.6%
+10.1 pp in Anchorage, AK
Bachelor's+ (25+)
37.7%
47.3%
+9.6 pp in Lexington, KY
Avg Commute
19.0 min
20.8 min
+1.8 min in Lexington, KY

Crime (per 100k/yr)

Violent Crime
1,016.5
269.1
+74% in Anchorage, AK
Property Crime
2,796.2
2,304.4
+18% 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
55.6°F
+18.2°F in Lexington, KY
Annual Precipitation
17.9 in
45.2 in
+27.3 in in Lexington, KY

Gas

Regular Gasoline
$5.09/gal
$3.94/gal
+23% in Anchorage, AK

Area: West Coast (PADD 5) vs Midwest (PADD 2).

Utilities

Electricity (¢/kWh)
28.2
15.0
+47% in Anchorage, AK
Natural Gas ($/MCF)
$14.40
$29.48
+105% in Lexington, KY

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 Lexington, KY
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 / KY)
None
6%
+6.0 pp in KY
Income Tax (top rate)
None
3.50%
+3.5 pp in KY

Anchorage vs Lexington — FAQ

Is it cheaper to live in Anchorage or Lexington?
Lexington, KY is cheaper. Its monthly baseline of $1,070 (1BR rent + utilities) runs about 19% below Anchorage, AK's $1,320, mainly because of rent.
How much more do you need to earn to live in Anchorage than in Lexington?
To keep rent near the recommended 30% of gross income, you'd want to earn roughly $42,000 a year in Anchorage versus $35,000 in Lexington.
Which has lower taxes, Anchorage or Lexington?
Anchorage is taxed under Alaska's rules (no state income tax and no state sales tax); Lexington under Kentucky's (a top state income tax rate of 3.50% 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).