Is it cheaper to live in Fairbanks or Jackson?

Jackson, MS is cheaper. Its monthly baseline of $1,000 (1BR rent + utilities) runs about 26% below Fairbanks, AK's $1,350, mainly because of rent.

How much more do you need to earn to live in Fairbanks than in Jackson?

To keep rent near the recommended 30% of gross income, you'd want to earn roughly $43,000 a year in Fairbanks versus $33,000 in Jackson.

Which has lower taxes, Fairbanks or Jackson?

Fairbanks is taxed under Alaska's rules (no state income tax and no state sales tax); Jackson under Mississippi's (a top state income tax rate of 4.00% and a 7% state sales tax).

Fairbanks vs Jackson Cost of Living 2026

Fairbanks

Alaska

$1,350/mo est.

Jackson

Mississippi

$1,000/mo est.

Monthly estimate = 1BR rent + electricity + gas

A one-person monthly baseline (1BR rent plus typical utilities) runs $1,350 in Fairbanks, AK versus $1,000 in Jackson, MS. Overall, Jackson, MS is roughly 26% cheaper to live in day-to-day than Fairbanks, AK, driven mainly by rent.

Median household income is $72,077 in Fairbanks, AK and $43,238 in Jackson, MS — about 40% higher in Fairbanks, AK. Alaska has no state income tax and no state sales tax; Mississippi has a top state income tax rate of 4.00% and a 7% state sales tax.

Fairbanks, AK

Jackson, MS

Rent

Studio

$883

$1,085

+23% in Jackson, MS

1 Bedroom

$1,076

$816

+24% in Fairbanks, AK

2 Bedroom

$1,428

$991

+31% in Fairbanks, AK

3 Bedroom

$2,019

$1,121

+44% in Fairbanks, AK

Buying a Home

Median Home Value

$255,700

$108,200

+58% in Fairbanks, AK

Income

Median Household Income

$72,077

$43,238

+40% in Fairbanks, AK

Metro Median Wage (annual)

$61,810

$42,850

+31% in Fairbanks, AK

People & Lifestyle

Median Age

28.6 yr

34.7 yr

+6.1 yr in Jackson, MS

Homeownership

40.5%

48.6%

+8.1 pp in Jackson, MS

Bachelor's+ (25+)

26.5%

28.6%

+2.1 pp in Jackson, MS

Avg Commute

14.1 min

20.2 min

+6.1 min in Jackson, MS

Crime (per 100k/yr)

Violent Crime

726.1

—

Property Crime

3,504.2

—

FBI Crime Data Explorer. Offenses per 100,000 residents per year; agency reporting practices vary, so this is approximate.

Climate

Avg Annual Temperature

27.7°F

65.3°F

+37.6°F in Jackson, MS

Annual Precipitation

10.8 in

54.3 in

+43.5 in in Jackson, MS

Gas

Regular Gasoline

$5.21/gal

$3.62/gal

+31% in Fairbanks, AK

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

Utilities

Electricity (¢/kWh)

28.2

14.9

+47% in Fairbanks, AK

Natural Gas ($/MCF)

$17.35

$29.04

+67% in Jackson, MS

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

Groceries

Milk (gal)

$4.82

$4.00

+17% in Fairbanks, AK

Bread (lb)

$2.04

$1.75

+14% in Fairbanks, AK

Eggs (doz)

$2.19

$2.21

+1% in Jackson, MS

Ground Beef (lb)

$7.36

$6.45

+12% in Fairbanks, AK

Chicken (lb)

$2.01

$1.90

+6% in Fairbanks, AK

Bananas (lb)

$0.70

$0.62

+12% in Fairbanks, AK

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

State Taxes

Sales Tax (AK / MS)

None

+7.0 pp in MS

Income Tax (top rate)

None

4.00%

+4.0 pp in MS

Fairbanks vs Jackson — FAQ

Is it cheaper to live in Fairbanks or Jackson?: Jackson, MS is cheaper. Its monthly baseline of $1,000 (1BR rent + utilities) runs about 26% below Fairbanks, AK's $1,350, mainly because of rent.
How much more do you need to earn to live in Fairbanks than in Jackson?: To keep rent near the recommended 30% of gross income, you'd want to earn roughly $43,000 a year in Fairbanks versus $33,000 in Jackson.
Which has lower taxes, Fairbanks or Jackson?: Fairbanks is taxed under Alaska's rules (no state income tax and no state sales tax); Jackson under Mississippi's (a top state income tax rate of 4.00% 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).