Is it cheaper to live in Fairbanks or Madison?

Fairbanks, AK is cheaper. Its monthly baseline of $1,350 (1BR rent + utilities) runs about 5% below Madison, WI's $1,420, mainly because of rent.

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

To keep rent near the recommended 30% of gross income, you'd want to earn roughly $43,000 a year in Fairbanks versus $49,000 in Madison.

Which has lower taxes, Fairbanks or Madison?

Fairbanks is taxed under Alaska's rules (no state income tax and no state sales tax); Madison under Wisconsin's (a top state income tax rate of 7.65% and a 5% state sales tax).

Fairbanks vs Madison Cost of Living 2026

Fairbanks

Alaska

$1,350/mo est.

Madison

Wisconsin

$1,420/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 $1,420 in Madison, WI. Overall, Fairbanks, AK is roughly 5% cheaper to live in day-to-day than Madison, WI, driven mainly by rent.

Median household income is $72,077 in Fairbanks, AK and $76,983 in Madison, WI — about 6% higher in Madison, WI. Alaska has no state income tax and no state sales tax; Wisconsin has a top state income tax rate of 7.65% and a 5% state sales tax.

Fairbanks, AK

Madison, WI

Rent

Studio

$883

$1,018

+15% in Madison, WI

1 Bedroom

$1,076

$1,219

+13% in Madison, WI

2 Bedroom

$1,428

$1,432

+0% in Madison, WI

3 Bedroom

$2,019

$1,766

+13% in Fairbanks, AK

Buying a Home

Median Home Value

$255,700

$346,900

+36% in Madison, WI

Income

Median Household Income

$72,077

$76,983

+7% in Madison, WI

Metro Median Wage (annual)

$61,810

$58,080

+6% in Fairbanks, AK

People & Lifestyle

Median Age

28.6 yr

31.8 yr

+3.2 yr in Madison, WI

Homeownership

40.5%

46.6%

+6.1 pp in Madison, WI

Bachelor's+ (25+)

26.5%

59.2%

+32.7 pp in Madison, WI

Avg Commute

14.1 min

19.4 min

+5.3 min in Madison, WI

Crime (per 100k/yr)

Violent Crime

726.1

259.5

+64% in Fairbanks, AK

Property Crime

3,504.2

1,884.5

+46% 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

46.5°F

+18.8°F in Madison, WI

Annual Precipitation

10.8 in

34.5 in

+23.7 in in Madison, WI

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

19.6

+31% in Fairbanks, AK

Natural Gas ($/MCF)

$17.35

$18.17

+5% in Madison, WI

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 Madison, WI

Ground Beef (lb)

$7.36

$6.77

+8% in Fairbanks, AK

Chicken (lb)

$2.01

$2.10

+4% in Madison, WI

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 / WI)

None

+5.0 pp in WI

Income Tax (top rate)

None

7.65%

+7.7 pp in WI

Fairbanks vs Madison — FAQ

Is it cheaper to live in Fairbanks or Madison?: Fairbanks, AK is cheaper. Its monthly baseline of $1,350 (1BR rent + utilities) runs about 5% below Madison, WI's $1,420, mainly because of rent.
How much more do you need to earn to live in Fairbanks than in Madison?: To keep rent near the recommended 30% of gross income, you'd want to earn roughly $43,000 a year in Fairbanks versus $49,000 in Madison.
Which has lower taxes, Fairbanks or Madison?: Fairbanks is taxed under Alaska's rules (no state income tax and no state sales tax); Madison under Wisconsin's (a top state income tax rate of 7.65% and a 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).