Is it cheaper to live in Anchorage or Santa Fe?

Santa Fe, NM is cheaper. Its monthly baseline of $1,310 (1BR rent + utilities) runs about 1% 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 Santa Fe?

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 Santa Fe.

Which has lower taxes, Anchorage or Santa Fe?

Anchorage is taxed under Alaska's rules (no state income tax and no state sales tax); Santa Fe under New Mexico's (a top state income tax rate of 5.90% and a 4.875% state sales tax).

Anchorage vs Santa Fe Cost of Living 2026

Anchorage

Alaska

$1,320/mo est.

Santa Fe

New Mexico

$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 Santa Fe, NM. Overall, Santa Fe, NM is roughly 1% 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 $70,110 in Santa Fe, NM — about 29% higher in Anchorage, AK. Alaska has no state income tax and no state sales tax; New Mexico has a top state income tax rate of 5.90% and a 4.875% state sales tax.

Anchorage, AK

Santa Fe, NM

Rent

Studio

$1,001

$969

+3% in Anchorage, AK

1 Bedroom

$1,052

$1,167

+11% in Santa Fe, NM

2 Bedroom

$1,433

$1,559

+9% in Santa Fe, NM

3 Bedroom

$1,952

$1,733

+11% in Anchorage, AK

Buying a Home

Median Home Value

$375,900

$411,500

+9% in Santa Fe, NM

Income

Median Household Income

$98,152

$70,110

+29% in Anchorage, AK

Metro Median Wage (annual)

$60,200

$48,710

+19% in Anchorage, AK

People & Lifestyle

Median Age

34.9 yr

46.4 yr

+11.5 yr in Santa Fe, NM

Homeownership

63.7%

62.8%

+0.9 pp in Anchorage, AK

Bachelor's+ (25+)

37.7%

45.4%

+7.7 pp in Santa Fe, NM

Avg Commute

19.0 min

20.2 min

+1.2 min in Santa Fe, NM

Crime (per 100k/yr)

Violent Crime

1,016.5

843.3

+17% in Anchorage, AK

Property Crime

2,796.2

5,189

+86% in Santa Fe, NM

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

51.9°F

+14.5°F in Santa Fe, NM

Annual Precipitation

17.9 in

13.5 in

+4.4 in in Anchorage, AK

Gas

Regular Gasoline

$5.09/gal

$3.62/gal

+29% in Anchorage, AK

Area: West Coast (PADD 5) vs Gulf Coast (PADD 3).

Utilities

Electricity (¢/kWh)

28.2

14.1

+50% in Anchorage, AK

Natural Gas ($/MCF)

$14.40

$11.90

+17% in Anchorage, AK

Residential, state-level averages (EIA). MCF = 1,000 cubic feet.

Groceries

Milk (gal)

$4.82

about equal

Bread (lb)

$2.04

about equal

Eggs (doz)

$2.19

about equal

Ground Beef (lb)

$7.36

about equal

Chicken (lb)

$2.01

about equal

Bananas (lb)

$0.70

about equal

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

State Taxes

Sales Tax (AK / NM)

None

4.875%

+4.9 pp in NM

Income Tax (top rate)

None

5.90%

+5.9 pp in NM

Anchorage vs Santa Fe — FAQ

Is it cheaper to live in Anchorage or Santa Fe?: Santa Fe, NM is cheaper. Its monthly baseline of $1,310 (1BR rent + utilities) runs about 1% 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 Santa Fe?: 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 Santa Fe.
Which has lower taxes, Anchorage or Santa Fe?: Anchorage is taxed under Alaska's rules (no state income tax and no state sales tax); Santa Fe under New Mexico's (a top state income tax rate of 5.90% and a 4.875% 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).