Is it cheaper to live in Anchorage or Newark?

Newark, NJ is cheaper. Its monthly baseline of $1,210 (1BR rent + utilities) runs about 8% below Anchorage, AK's $1,320, mainly because of rent.

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

To keep rent near the recommended 30% of gross income, you'd want to earn roughly $42,000 a year in Anchorage versus $39,000 in Newark.

Which has lower taxes, Anchorage or Newark?

Anchorage is taxed under Alaska's rules (no state income tax and no state sales tax); Newark under New Jersey's (a top state income tax rate of 10.75% and a 6.625% state sales tax).

Anchorage vs Newark Cost of Living 2026

Anchorage

Alaska

$1,320/mo est.

Newark

New Jersey

$1,210/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 $1,210 in Newark, NJ. Overall, Newark, NJ is roughly 8% cheaper to live in day-to-day than Anchorage, AK, driven mainly by rent.

Median household income is $98,152 in Anchorage, AK and $48,416 in Newark, NJ — about 51% higher in Anchorage, AK. Alaska has no state income tax and no state sales tax; New Jersey has a top state income tax rate of 10.75% and a 6.625% state sales tax.

Anchorage, AK

Newark, NJ

Rent

Studio

$1,001

$1,111

+11% in Newark, NJ

1 Bedroom

$1,052

$978

+7% in Anchorage, AK

2 Bedroom

$1,433

$1,386

+3% in Anchorage, AK

3 Bedroom

$1,952

$1,695

+13% in Anchorage, AK

Buying a Home

Median Home Value

$375,900

$337,800

+10% in Anchorage, AK

Income

Median Household Income

$98,152

$48,416

+51% in Anchorage, AK

Metro Median Wage (annual)

$60,200

$61,430

+2% in Newark, NJ

People & Lifestyle

Median Age

34.9 yr

34.8 yr

+0.1 yr in Anchorage, AK

Homeownership

63.7%

24.1%

+39.6 pp in Anchorage, AK

Bachelor's+ (25+)

37.7%

17.4%

+20.3 pp in Anchorage, AK

Avg Commute

19.0 min

33.2 min

+14.2 min in Newark, NJ

Crime (per 100k/yr)

Violent Crime

1,016.5

582.5

+43% in Anchorage, AK

Property Crime

2,796.2

1,961.8

+30% 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

54.9°F

+17.5°F in Newark, NJ

Annual Precipitation

17.9 in

46.3 in

+28.3 in in Newark, NJ

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

23.3

+18% in Anchorage, AK

Natural Gas ($/MCF)

$14.40

$15.93

+11% in Newark, NJ

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

$1.92

+6% in Anchorage, AK

Eggs (doz)

$2.19

about equal

Ground Beef (lb)

$7.36

$6.90

+6% in Anchorage, AK

Chicken (lb)

$2.01

$2.19

+9% in Newark, NJ

Bananas (lb)

$0.70

$0.69

about equal

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

State Taxes

Sales Tax (AK / NJ)

None

6.625%

+6.6 pp in NJ

Income Tax (top rate)

None

10.75%

+10.8 pp in NJ

Anchorage vs Newark — FAQ

Is it cheaper to live in Anchorage or Newark?: Newark, NJ is cheaper. Its monthly baseline of $1,210 (1BR rent + utilities) runs about 8% below Anchorage, AK's $1,320, mainly because of rent.
How much more do you need to earn to live in Anchorage than in Newark?: To keep rent near the recommended 30% of gross income, you'd want to earn roughly $42,000 a year in Anchorage versus $39,000 in Newark.
Which has lower taxes, Anchorage or Newark?: Anchorage is taxed under Alaska's rules (no state income tax and no state sales tax); Newark under New Jersey's (a top state income tax rate of 10.75% and a 6.625% 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).