Is it cheaper to live in Anchorage or Paterson?

Anchorage, AK is cheaper. Its monthly baseline of $1,330 (1BR rent + utilities) runs about 7% below Paterson, NJ's $1,430, mainly because of rent.

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

To keep rent near the recommended 30% of gross income, you'd want to earn roughly $42,000 a year in Anchorage versus $47,000 in Paterson.

Which has lower taxes, Anchorage or Paterson?

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

Anchorage vs Paterson Cost of Living 2026

Anchorage

Alaska

$1,330/mo est.

Paterson

New Jersey

$1,430/mo est.

Monthly estimate = 1BR rent + electricity + gas

A one-person monthly baseline (1BR rent plus typical utilities) runs $1,330 in Anchorage, AK versus $1,430 in Paterson, NJ. Overall, Anchorage, AK is roughly 7% cheaper to live in day-to-day than Paterson, NJ, driven mainly by rent.

Median household income is $98,152 in Anchorage, AK and $53,766 in Paterson, NJ — about 45% 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

Paterson, NJ

Rent

Studio

$1,001

$786

+21% in Anchorage, AK

1 Bedroom

$1,052

$1,183

+12% in Paterson, NJ

2 Bedroom

$1,433

$1,468

+2% in Paterson, NJ

3 Bedroom

$1,952

$1,729

+11% in Anchorage, AK

Buying a Home

Median Home Value

$375,900

$335,400

+11% in Anchorage, AK

Income

Median Household Income

$98,152

$53,766

+45% in Anchorage, AK

Metro Median Wage (annual)

$60,200

$61,430

+2% in Paterson, NJ

People & Lifestyle

Median Age

34.9 yr

33.3 yr

+1.6 yr in Anchorage, AK

Homeownership

63.7%

26.2%

+37.5 pp in Anchorage, AK

Bachelor's+ (25+)

37.7%

12.5%

+25.2 pp in Anchorage, AK

Avg Commute

19.0 min

23.1 min

+4.1 min in Paterson, NJ

Crime (per 100k/yr)

Violent Crime

1,016.5

1,010.1

+1% in Anchorage, AK

Property Crime

2,796.2

2,391.4

+14% 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

52.2°F

+14.8°F in Paterson, NJ

Annual Precipitation

17.9 in

49.0 in

+31.1 in in Paterson, NJ

Gas

Regular Gasoline

$5.21/gal

$3.94/gal

+24% in Anchorage, AK

Area: West Coast (PADD 5) vs East Coast (PADD 1).

Utilities

Electricity (¢/kWh)

28.2

24.9

+12% in Anchorage, AK

Natural Gas ($/MCF)

$17.35

$17.68

+2% in Paterson, 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 Paterson, 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 Paterson — FAQ

Is it cheaper to live in Anchorage or Paterson?: Anchorage, AK is cheaper. Its monthly baseline of $1,330 (1BR rent + utilities) runs about 7% below Paterson, NJ's $1,430, mainly because of rent.
How much more do you need to earn to live in Anchorage than in Paterson?: To keep rent near the recommended 30% of gross income, you'd want to earn roughly $42,000 a year in Anchorage versus $47,000 in Paterson.
Which has lower taxes, Anchorage or Paterson?: Anchorage is taxed under Alaska's rules (no state income tax and no state sales tax); Paterson 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).