Is it cheaper to live in Fairbanks or Lincoln?

Lincoln, NE is cheaper. Its monthly baseline of $1,030 (1BR rent + utilities) runs about 24% below Fairbanks, AK's $1,350, mainly because of rent.

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

To keep rent near the recommended 30% of gross income, you'd want to earn roughly $43,000 a year in Fairbanks versus $35,000 in Lincoln.

Which has lower taxes, Fairbanks or Lincoln?

Fairbanks is taxed under Alaska's rules (no state income tax and no state sales tax); Lincoln under Nebraska's (a top state income tax rate of 4.55% and a 5.5% state sales tax).

Fairbanks vs Lincoln Cost of Living 2026

Fairbanks

Alaska

$1,350/mo est.

Lincoln

Nebraska

$1,030/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 $1,030 in Lincoln, NE. Overall, Lincoln, NE is roughly 24% cheaper to live in day-to-day than Fairbanks, AK, driven mainly by rent.

Median household income is $72,077 in Fairbanks, AK and $69,991 in Lincoln, NE — about 3% higher in Fairbanks, AK. Alaska has no state income tax and no state sales tax; Nebraska has a top state income tax rate of 4.55% and a 5.5% state sales tax.

Fairbanks, AK

Lincoln, NE

Rent

Studio

$883

$851

+4% in Fairbanks, AK

1 Bedroom

$1,076

$879

+18% in Fairbanks, AK

2 Bedroom

$1,428

$1,070

+25% in Fairbanks, AK

3 Bedroom

$2,019

$1,379

+32% in Fairbanks, AK

Buying a Home

Median Home Value

$255,700

$248,200

+3% in Fairbanks, AK

Income

Median Household Income

$72,077

$69,991

+3% in Fairbanks, AK

Metro Median Wage (annual)

$61,810

$49,800

+19% in Fairbanks, AK

People & Lifestyle

Median Age

28.6 yr

33.4 yr

+4.8 yr in Lincoln, NE

Homeownership

40.5%

55.8%

+15.3 pp in Lincoln, NE

Bachelor's+ (25+)

26.5%

41.0%

+14.5 pp in Lincoln, NE

Avg Commute

14.1 min

18.3 min

+4.2 min in Lincoln, NE

Crime (per 100k/yr)

Violent Crime

726.1

363.1

+50% in Fairbanks, AK

Property Crime

3,504.2

2,484.4

+29% in Fairbanks, AK

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

51.5°F

+23.8°F in Lincoln, NE

Annual Precipitation

10.8 in

30.9 in

+20.0 in in Lincoln, NE

Gas

Regular Gasoline

$5.21/gal

$3.85/gal

+26% in Fairbanks, AK

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

Utilities

Electricity (¢/kWh)

28.2

13.3

+53% in Fairbanks, AK

Natural Gas ($/MCF)

$17.35

$20.10

+16% in Lincoln, NE

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

Groceries

Milk (gal)

$4.82

$4.31

+10% in Fairbanks, AK

Bread (lb)

$2.04

$1.66

+19% in Fairbanks, AK

Eggs (doz)

$2.19

$3.63

+66% in Lincoln, NE

Ground Beef (lb)

$7.36

$6.77

+8% in Fairbanks, AK

Chicken (lb)

$2.01

$2.10

+4% in Lincoln, NE

Bananas (lb)

$0.70

$0.62

+12% in Fairbanks, AK

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

State Taxes

Sales Tax (AK / NE)

None

5.5%

+5.5 pp in NE

Income Tax (top rate)

None

4.55%

+4.5 pp in NE

Fairbanks vs Lincoln — FAQ

Is it cheaper to live in Fairbanks or Lincoln?: Lincoln, NE is cheaper. Its monthly baseline of $1,030 (1BR rent + utilities) runs about 24% below Fairbanks, AK's $1,350, mainly because of rent.
How much more do you need to earn to live in Fairbanks than in Lincoln?: To keep rent near the recommended 30% of gross income, you'd want to earn roughly $43,000 a year in Fairbanks versus $35,000 in Lincoln.
Which has lower taxes, Fairbanks or Lincoln?: Fairbanks is taxed under Alaska's rules (no state income tax and no state sales tax); Lincoln under Nebraska's (a top state income tax rate of 4.55% and a 5.5% 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).