Is it cheaper to live in Fairbanks or Minneapolis?

Fairbanks, AK is cheaper. Its monthly baseline of $1,350 (1BR rent + utilities) runs about 1% below Minneapolis, MN's $1,370, mainly because of rent.

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

To keep rent near the recommended 30% of gross income, you'd want to earn roughly $43,000 a year in Fairbanks versus $48,000 in Minneapolis.

Which has lower taxes, Fairbanks or Minneapolis?

Fairbanks is taxed under Alaska's rules (no state income tax and no state sales tax); Minneapolis under Minnesota's (a top state income tax rate of 9.85% and a 6.875% state sales tax).

Fairbanks vs Minneapolis Cost of Living 2026

Fairbanks

Alaska

$1,350/mo est.

Minneapolis

Minnesota

$1,370/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 $1,370 in Minneapolis, MN. Overall, Fairbanks, AK is roughly 1% cheaper to live in day-to-day than Minneapolis, MN, driven mainly by rent.

Median household income is $72,077 in Fairbanks, AK and $80,269 in Minneapolis, MN — about 10% higher in Minneapolis, MN. Alaska has no state income tax and no state sales tax; Minnesota has a top state income tax rate of 9.85% and a 6.875% state sales tax.

Fairbanks, AK

Minneapolis, MN

Rent

Studio

$883

$992

+12% in Minneapolis, MN

1 Bedroom

$1,076

$1,192

+11% in Minneapolis, MN

2 Bedroom

$1,428

$1,555

+9% in Minneapolis, MN

3 Bedroom

$2,019

$1,761

+13% in Fairbanks, AK

Buying a Home

Median Home Value

$255,700

$345,600

+35% in Minneapolis, MN

Income

Median Household Income

$72,077

$80,269

+11% in Minneapolis, MN

Metro Median Wage (annual)

$61,810

$59,320

+4% in Fairbanks, AK

People & Lifestyle

Median Age

28.6 yr

33.0 yr

+4.4 yr in Minneapolis, MN

Homeownership

40.5%

48.0%

+7.5 pp in Minneapolis, MN

Bachelor's+ (25+)

26.5%

54.5%

+28.0 pp in Minneapolis, MN

Avg Commute

14.1 min

22.5 min

+8.4 min in Minneapolis, MN

Crime (per 100k/yr)

Violent Crime

726.1

1,168.5

+61% in Minneapolis, MN

Property Crime

3,504.2

5,183.1

+48% in Minneapolis, MN

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

47.4°F

+19.7°F in Minneapolis, MN

Annual Precipitation

10.8 in

32.8 in

+22.0 in in Minneapolis, MN

Gas

Regular Gasoline

$5.21/gal

$3.96/gal

+24% in Fairbanks, AK

Area: West Coast (PADD 5) vs Minnesota.

Public Transit

Base Fare (one-way)

—

$2.00

Adult base one-way fare — — vs Metro Transit (2026).

Utilities

Electricity (¢/kWh)

28.2

17.5

+38% in Fairbanks, AK

Natural Gas ($/MCF)

$17.35

$14.79

+15% in Fairbanks, AK

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 Minneapolis, MN

Ground Beef (lb)

$7.36

$6.77

+8% in Fairbanks, AK

Chicken (lb)

$2.01

$2.10

+4% in Minneapolis, MN

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 / MN)

None

6.875%

+6.9 pp in MN

Income Tax (top rate)

None

9.85%

+9.8 pp in MN

Fairbanks vs Minneapolis — FAQ

Is it cheaper to live in Fairbanks or Minneapolis?: Fairbanks, AK is cheaper. Its monthly baseline of $1,350 (1BR rent + utilities) runs about 1% below Minneapolis, MN's $1,370, mainly because of rent.
How much more do you need to earn to live in Fairbanks than in Minneapolis?: To keep rent near the recommended 30% of gross income, you'd want to earn roughly $43,000 a year in Fairbanks versus $48,000 in Minneapolis.
Which has lower taxes, Fairbanks or Minneapolis?: Fairbanks is taxed under Alaska's rules (no state income tax and no state sales tax); Minneapolis under Minnesota's (a top state income tax rate of 9.85% and a 6.875% 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).