Is it cheaper to live in Anchorage or Sioux Falls?

Sioux Falls, SD is cheaper. Its monthly baseline of $1,030 (1BR rent + utilities) runs about 22% below Anchorage, AK's $1,320, mainly because of rent.

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

To keep rent near the recommended 30% of gross income, you'd want to earn roughly $42,000 a year in Anchorage versus $35,000 in Sioux Falls.

Which has lower taxes, Anchorage or Sioux Falls?

Anchorage is taxed under Alaska's rules (no state income tax and no state sales tax); Sioux Falls under South Dakota's (no state income tax and a 4.2% state sales tax).

Anchorage vs Sioux Falls Cost of Living 2026

Anchorage

Alaska

$1,320/mo est.

Sioux Falls

South Dakota

$1,030/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 $1,030 in Sioux Falls, SD. Overall, Sioux Falls, SD is roughly 22% cheaper to live in day-to-day than Anchorage, AK, driven mainly by rent.

Median household income is $98,152 in Anchorage, AK and $74,714 in Sioux Falls, SD — about 24% higher in Anchorage, AK. Alaska has no state income tax and no state sales tax; South Dakota has no state income tax and a 4.2% state sales tax.

Anchorage, AK

Sioux Falls, SD

Rent

Studio

$1,001

$825

+18% in Anchorage, AK

1 Bedroom

$1,052

$870

+17% in Anchorage, AK

2 Bedroom

$1,433

$1,000

+30% in Anchorage, AK

3 Bedroom

$1,952

$1,237

+37% in Anchorage, AK

Buying a Home

Median Home Value

$375,900

$271,400

+28% in Anchorage, AK

Income

Median Household Income

$98,152

$74,714

+24% in Anchorage, AK

Metro Median Wage (annual)

$60,200

$47,970

+20% in Anchorage, AK

People & Lifestyle

Median Age

34.9 yr

35.1 yr

+0.2 yr in Sioux Falls, SD

Homeownership

63.7%

60.0%

+3.7 pp in Anchorage, AK

Bachelor's+ (25+)

37.7%

37.4%

+0.3 pp in Anchorage, AK

Avg Commute

19.0 min

17.0 min

+2.0 min in Anchorage, AK

Crime (per 100k/yr)

Violent Crime

1,016.5

526.7

+48% in Anchorage, AK

Property Crime

2,796.2

2,927.1

+5% in Sioux Falls, SD

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

45.8°F

+8.4°F in Sioux Falls, SD

Annual Precipitation

17.9 in

26.4 in

+8.5 in in Sioux Falls, SD

Gas

Regular Gasoline

$5.09/gal

$3.94/gal

+23% in Anchorage, AK

Area: West Coast (PADD 5) vs Midwest (PADD 2).

Utilities

Electricity (¢/kWh)

28.2

15.7

+44% in Anchorage, AK

Natural Gas ($/MCF)

$14.40

$10.95

+24% in Anchorage, AK

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 Sioux Falls, SD

Ground Beef (lb)

$7.36

$6.77

+8% in Anchorage, AK

Chicken (lb)

$2.01

$2.10

+4% in Sioux Falls, SD

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 / SD)

None

4.2%

+4.2 pp in SD

Income Tax (top rate)

None

about equal

Anchorage vs Sioux Falls — FAQ

Is it cheaper to live in Anchorage or Sioux Falls?: Sioux Falls, SD is cheaper. Its monthly baseline of $1,030 (1BR rent + utilities) runs about 22% below Anchorage, AK's $1,320, mainly because of rent.
How much more do you need to earn to live in Anchorage than in Sioux Falls?: To keep rent near the recommended 30% of gross income, you'd want to earn roughly $42,000 a year in Anchorage versus $35,000 in Sioux Falls.
Which has lower taxes, Anchorage or Sioux Falls?: Anchorage is taxed under Alaska's rules (no state income tax and no state sales tax); Sioux Falls under South Dakota's (no state income tax and a 4.2% 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).