Is it cheaper to live in Anchorage or Madison?

Anchorage, AK is cheaper. Its monthly baseline of $1,320 (1BR rent + utilities) runs about 6% below Madison, WI's $1,410, mainly because of rent.

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

To keep rent near the recommended 30% of gross income, you'd want to earn roughly $42,000 a year in Anchorage versus $49,000 in Madison.

Which has lower taxes, Anchorage or Madison?

Anchorage is taxed under Alaska's rules (no state income tax and no state sales tax); Madison under Wisconsin's (a top state income tax rate of 7.65% and a 5% state sales tax).

Anchorage vs Madison Cost of Living 2026

Anchorage

Alaska

$1,320/mo est.

Madison

Wisconsin

$1,410/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 $1,410 in Madison, WI. Overall, Anchorage, AK is roughly 6% cheaper to live in day-to-day than Madison, WI, driven mainly by rent.

Median household income is $98,152 in Anchorage, AK and $76,983 in Madison, WI — about 22% higher in Anchorage, AK. Alaska has no state income tax and no state sales tax; Wisconsin has a top state income tax rate of 7.65% and a 5% state sales tax.

Anchorage, AK

Madison, WI

Rent

Studio

$1,001

$1,018

+2% in Madison, WI

1 Bedroom

$1,052

$1,219

+16% in Madison, WI

2 Bedroom

$1,433

$1,432

+0% in Anchorage, AK

3 Bedroom

$1,952

$1,766

+10% in Anchorage, AK

Buying a Home

Median Home Value

$375,900

$346,900

+8% in Anchorage, AK

Income

Median Household Income

$98,152

$76,983

+22% in Anchorage, AK

Metro Median Wage (annual)

$60,200

$58,080

+4% in Anchorage, AK

People & Lifestyle

Median Age

34.9 yr

31.8 yr

+3.1 yr in Anchorage, AK

Homeownership

63.7%

46.6%

+17.1 pp in Anchorage, AK

Bachelor's+ (25+)

37.7%

59.2%

+21.5 pp in Madison, WI

Avg Commute

19.0 min

19.4 min

+0.4 min in Madison, WI

Crime (per 100k/yr)

Violent Crime

1,016.5

259.5

+74% in Anchorage, AK

Property Crime

2,796.2

1,884.5

+33% 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

46.5°F

+9.1°F in Madison, WI

Annual Precipitation

17.9 in

34.5 in

+16.6 in in Madison, WI

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

19.7

+30% in Anchorage, AK

Natural Gas ($/MCF)

$14.40

$11.79

+18% in Anchorage, AK

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

Groceries

Milk (gal)

$4.82

$4.31

+10% in Anchorage, AK

Bread (lb)

$2.04

$1.66

+19% in Anchorage, AK

Eggs (doz)

$2.19

$3.63

+66% in Madison, WI

Ground Beef (lb)

$7.36

$6.77

+8% in Anchorage, AK

Chicken (lb)

$2.01

$2.10

+4% in Madison, WI

Bananas (lb)

$0.70

$0.62

+12% in Anchorage, AK

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

State Taxes

Sales Tax (AK / WI)

None

+5.0 pp in WI

Income Tax (top rate)

None

7.65%

+7.7 pp in WI

Anchorage vs Madison — FAQ

Is it cheaper to live in Anchorage or Madison?: Anchorage, AK is cheaper. Its monthly baseline of $1,320 (1BR rent + utilities) runs about 6% below Madison, WI's $1,410, mainly because of rent.
How much more do you need to earn to live in Anchorage than in Madison?: To keep rent near the recommended 30% of gross income, you'd want to earn roughly $42,000 a year in Anchorage versus $49,000 in Madison.
Which has lower taxes, Anchorage or Madison?: Anchorage is taxed under Alaska's rules (no state income tax and no state sales tax); Madison under Wisconsin's (a top state income tax rate of 7.65% and a 5% 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).