Is it cheaper to live in Anchorage or St. Paul?

St. Paul, MN is cheaper. Its monthly baseline of $1,300 (1BR rent + utilities) runs about 2% below Anchorage, AK's $1,320, mainly because of electricity costs.

How much more do you need to earn to live in Anchorage than in St. Paul?

To keep rent near the recommended 30% of gross income, you'd want to earn roughly $42,000 a year in Anchorage versus $45,000 in St. Paul.

Which has lower taxes, Anchorage or St. Paul?

Anchorage is taxed under Alaska's rules (no state income tax and no state sales tax); St. Paul under Minnesota's (a top state income tax rate of 9.85% and a 6.875% state sales tax).

Anchorage vs St. Paul Cost of Living 2026

Anchorage

Alaska

$1,320/mo est.

St. Paul

Minnesota

$1,300/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 $1,300 in St. Paul, MN. Overall, St. Paul, MN is roughly 2% cheaper to live in day-to-day than Anchorage, AK, driven mainly by electricity costs.

Median household income is $98,152 in Anchorage, AK and $73,055 in St. Paul, MN — about 26% 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

St. Paul, MN

Rent

Studio

$1,001

$995

+1% in Anchorage, AK

1 Bedroom

$1,052

$1,126

+7% in St. Paul, MN

2 Bedroom

$1,433

$1,384

+3% in Anchorage, AK

3 Bedroom

$1,952

$1,662

+15% in Anchorage, AK

Buying a Home

Median Home Value

$375,900

$280,300

+25% in Anchorage, AK

Income

Median Household Income

$98,152

$73,055

+26% in Anchorage, AK

Metro Median Wage (annual)

$60,200

$59,320

+1% in Anchorage, AK

People & Lifestyle

Median Age

34.9 yr

33.5 yr

+1.4 yr in Anchorage, AK

Homeownership

63.7%

53.2%

+10.5 pp in Anchorage, AK

Bachelor's+ (25+)

37.7%

43.5%

+5.8 pp in St. Paul, MN

Avg Commute

19.0 min

22.3 min

+3.3 min in St. Paul, MN

Crime (per 100k/yr)

Violent Crime

1,016.5

619

+39% in Anchorage, AK

Property Crime

2,796.2

2,897.2

+4% in St. Paul, 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

47.1°F

+9.7°F in St. Paul, MN

Annual Precipitation

17.9 in

28.5 in

+10.6 in in St. Paul, MN

Gas

Regular Gasoline

$5.09/gal

$3.95/gal

+22% in Anchorage, AK

Area: West Coast (PADD 5) vs Minnesota.

Utilities

Electricity (¢/kWh)

28.2

16.9

+40% in Anchorage, AK

Natural Gas ($/MCF)

$14.40

$14.95

+4% in St. Paul, 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 St. Paul, MN

Ground Beef (lb)

$7.36

$6.77

+8% in Anchorage, AK

Chicken (lb)

$2.01

$2.10

+4% in St. Paul, 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 St. Paul — FAQ

Is it cheaper to live in Anchorage or St. Paul?: St. Paul, MN is cheaper. Its monthly baseline of $1,300 (1BR rent + utilities) runs about 2% below Anchorage, AK's $1,320, mainly because of electricity costs.
How much more do you need to earn to live in Anchorage than in St. Paul?: To keep rent near the recommended 30% of gross income, you'd want to earn roughly $42,000 a year in Anchorage versus $45,000 in St. Paul.
Which has lower taxes, Anchorage or St. Paul?: Anchorage is taxed under Alaska's rules (no state income tax and no state sales tax); St. Paul 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).