Living Cost Compare
Anchorage

Alaska

$1,320/mo est.

vs
Minneapolis

Minnesota

$1,370/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 $1,370 in Minneapolis, MN. Overall, Anchorage, AK is roughly 4% cheaper to live in day-to-day than Minneapolis, MN, driven mainly by rent.

Median household income is $98,152 in Anchorage, AK and $80,269 in Minneapolis, MN — about 18% higher in Anchorage, AK. Alaska has no state income tax and no state sales tax; Minnesota has a top state income tax rate of 9.85% and a 6.875% state sales tax.

Anchorage, AK
Minneapolis, MN

Rent

Studio
$1,001
$992
+1% in Anchorage, AK
1 Bedroom
$1,052
$1,192
+13% in Minneapolis, MN
2 Bedroom
$1,433
$1,555
+9% in Minneapolis, MN
3 Bedroom
$1,952
$1,761
+10% in Anchorage, AK

Buying a Home

Median Home Value
$375,900
$345,600
+8% in Anchorage, AK

Income

Median Household Income
$98,152
$80,269
+18% in Anchorage, AK
Metro Median Wage (annual)
$60,200
$59,320
+1% in Anchorage, AK

People & Lifestyle

Median Age
34.9 yr
33.0 yr
+1.9 yr in Anchorage, AK
Homeownership
63.7%
48.0%
+15.7 pp in Anchorage, AK
Bachelor's+ (25+)
37.7%
54.5%
+16.8 pp in Minneapolis, MN
Avg Commute
19.0 min
22.5 min
+3.5 min in Minneapolis, MN

Crime (per 100k/yr)

Violent Crime
1,016.5
1,168.5
+15% in Minneapolis, MN
Property Crime
2,796.2
5,183.1
+85% in Minneapolis, MN

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
47.4°F
+10.0°F in Minneapolis, MN
Annual Precipitation
17.9 in
32.8 in
+14.9 in in Minneapolis, MN

Gas

Regular Gasoline
$5.09/gal
$3.95/gal
+22% in Anchorage, AK

Area: West Coast (PADD 5) vs Minnesota.

Public Transit

Base Fare (one-way)
—
$2.00

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

Utilities

Electricity (¢/kWh)
28.2
16.9
+40% in Anchorage, AK
Natural Gas ($/MCF)
$14.40
$14.95
+4% in Minneapolis, MN

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 Minneapolis, MN
Ground Beef (lb)
$7.36
$6.77
+8% in Anchorage, AK
Chicken (lb)
$2.01
$2.10
+4% in Minneapolis, MN
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 / MN)
None
6.875%
+6.9 pp in MN
Income Tax (top rate)
None
9.85%
+9.8 pp in MN

Anchorage vs Minneapolis — FAQ

Is it cheaper to live in Anchorage or Minneapolis?
Anchorage, AK is cheaper. Its monthly baseline of $1,320 (1BR rent + utilities) runs about 4% below Minneapolis, MN's $1,370, mainly because of rent.
How much more do you need to earn to live in Anchorage than in Minneapolis?
To keep rent near the recommended 30% of gross income, you'd want to earn roughly $42,000 a year in Anchorage versus $48,000 in Minneapolis.
Which has lower taxes, Anchorage or Minneapolis?
Anchorage is taxed under Alaska's rules (no state income tax and no state sales tax); Minneapolis under Minnesota's (a top state income tax rate of 9.85% and a 6.875% 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).