Is it cheaper to live in Anchorage or Providence?

Providence, RI is cheaper. Its monthly baseline of $1,310 (1BR rent + utilities) runs about 1% below Anchorage, AK's $1,320, mainly because of rent.

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

To keep rent near the recommended 30% of gross income, you'd want to earn roughly $42,000 a year in Anchorage versus $41,000 in Providence.

Which has lower taxes, Anchorage or Providence?

Anchorage is taxed under Alaska's rules (no state income tax and no state sales tax); Providence under Rhode Island's (a top state income tax rate of 5.99% and a 7% state sales tax).

Anchorage vs Providence Cost of Living 2026

Anchorage

Alaska

$1,320/mo est.

Providence

Rhode Island

$1,310/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 $1,310 in Providence, RI. Overall, Providence, RI is roughly 1% cheaper to live in day-to-day than Anchorage, AK, driven mainly by rent.

Median household income is $98,152 in Anchorage, AK and $66,772 in Providence, RI — about 32% higher in Anchorage, AK. Alaska has no state income tax and no state sales tax; Rhode Island has a top state income tax rate of 5.99% and a 7% state sales tax.

Anchorage, AK

Providence, RI

Rent

Studio

$1,001

$1,116

+11% in Providence, RI

1 Bedroom

$1,052

$1,030

+2% in Anchorage, AK

2 Bedroom

$1,433

$1,323

+8% in Anchorage, AK

3 Bedroom

$1,952

$1,627

+17% in Anchorage, AK

Buying a Home

Median Home Value

$375,900

$322,800

+14% in Anchorage, AK

Income

Median Household Income

$98,152

$66,772

+32% in Anchorage, AK

Metro Median Wage (annual)

$60,200

$53,680

+11% in Anchorage, AK

People & Lifestyle

Median Age

34.9 yr

32.9 yr

+2.0 yr in Anchorage, AK

Homeownership

63.7%

41.2%

+22.5 pp in Anchorage, AK

Bachelor's+ (25+)

37.7%

34.7%

+3.0 pp in Anchorage, AK

Avg Commute

19.0 min

25.0 min

+6.0 min in Providence, RI

Crime (per 100k/yr)

Violent Crime

1,016.5

282.4

+72% in Anchorage, AK

Property Crime

2,796.2

1,665.6

+40% 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

51.6°F

+14.2°F in Providence, RI

Annual Precipitation

17.9 in

47.2 in

+29.3 in in Providence, RI

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

29.5

+4% in Providence, RI

Natural Gas ($/MCF)

$14.40

$16.06

+12% in Providence, RI

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 Providence, RI

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 / RI)

None

+7.0 pp in RI

Income Tax (top rate)

None

5.99%

+6.0 pp in RI

Anchorage vs Providence — FAQ

Is it cheaper to live in Anchorage or Providence?: Providence, RI is cheaper. Its monthly baseline of $1,310 (1BR rent + utilities) runs about 1% below Anchorage, AK's $1,320, mainly because of rent.
How much more do you need to earn to live in Anchorage than in Providence?: To keep rent near the recommended 30% of gross income, you'd want to earn roughly $42,000 a year in Anchorage versus $41,000 in Providence.
Which has lower taxes, Anchorage or Providence?: Anchorage is taxed under Alaska's rules (no state income tax and no state sales tax); Providence under Rhode Island's (a top state income tax rate of 5.99% and a 7% 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).