Is it cheaper to live in Fairbanks or Paterson?

Fairbanks, AK is cheaper. Its monthly baseline of $1,350 (1BR rent + utilities) runs about 6% below Paterson, NJ's $1,430, mainly because of rent.

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

To keep rent near the recommended 30% of gross income, you'd want to earn roughly $43,000 a year in Fairbanks versus $47,000 in Paterson.

Which has lower taxes, Fairbanks or Paterson?

Fairbanks is taxed under Alaska's rules (no state income tax and no state sales tax); Paterson under New Jersey's (a top state income tax rate of 10.75% and a 6.625% state sales tax).

Fairbanks vs Paterson Cost of Living 2026

Fairbanks

Alaska

$1,350/mo est.

Paterson

New Jersey

$1,430/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 $1,430 in Paterson, NJ. Overall, Fairbanks, AK is roughly 6% cheaper to live in day-to-day than Paterson, NJ, driven mainly by rent.

Median household income is $72,077 in Fairbanks, AK and $53,766 in Paterson, NJ — about 25% higher in Fairbanks, AK. Alaska has no state income tax and no state sales tax; New Jersey has a top state income tax rate of 10.75% and a 6.625% state sales tax.

Fairbanks, AK

Paterson, NJ

Rent

Studio

$883

$786

+11% in Fairbanks, AK

1 Bedroom

$1,076

$1,183

+10% in Paterson, NJ

2 Bedroom

$1,428

$1,468

+3% in Paterson, NJ

3 Bedroom

$2,019

$1,729

+14% in Fairbanks, AK

Buying a Home

Median Home Value

$255,700

$335,400

+31% in Paterson, NJ

Income

Median Household Income

$72,077

$53,766

+25% in Fairbanks, AK

Metro Median Wage (annual)

$61,810

$61,430

+1% in Fairbanks, AK

People & Lifestyle

Median Age

28.6 yr

33.3 yr

+4.7 yr in Paterson, NJ

Homeownership

40.5%

26.2%

+14.3 pp in Fairbanks, AK

Bachelor's+ (25+)

26.5%

12.5%

+14.0 pp in Fairbanks, AK

Avg Commute

14.1 min

23.1 min

+9.0 min in Paterson, NJ

Crime (per 100k/yr)

Violent Crime

726.1

1,010.1

+39% in Paterson, NJ

Property Crime

3,504.2

2,391.4

+32% 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

52.2°F

+24.5°F in Paterson, NJ

Annual Precipitation

10.8 in

49.0 in

+38.2 in in Paterson, NJ

Gas

Regular Gasoline

$5.21/gal

$3.94/gal

+24% in Fairbanks, AK

Area: West Coast (PADD 5) vs East Coast (PADD 1).

Utilities

Electricity (¢/kWh)

28.2

24.9

+12% in Fairbanks, AK

Natural Gas ($/MCF)

$17.35

$17.68

+2% in Paterson, NJ

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

$1.92

+6% in Fairbanks, AK

Eggs (doz)

$2.19

about equal

Ground Beef (lb)

$7.36

$6.90

+6% in Fairbanks, AK

Chicken (lb)

$2.01

$2.19

+9% in Paterson, NJ

Bananas (lb)

$0.70

$0.69

about equal

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

State Taxes

Sales Tax (AK / NJ)

None

6.625%

+6.6 pp in NJ

Income Tax (top rate)

None

10.75%

+10.8 pp in NJ

Fairbanks vs Paterson — FAQ

Is it cheaper to live in Fairbanks or Paterson?: Fairbanks, AK is cheaper. Its monthly baseline of $1,350 (1BR rent + utilities) runs about 6% below Paterson, NJ's $1,430, mainly because of rent.
How much more do you need to earn to live in Fairbanks than in Paterson?: To keep rent near the recommended 30% of gross income, you'd want to earn roughly $43,000 a year in Fairbanks versus $47,000 in Paterson.
Which has lower taxes, Fairbanks or Paterson?: Fairbanks is taxed under Alaska's rules (no state income tax and no state sales tax); Paterson under New Jersey's (a top state income tax rate of 10.75% and a 6.625% 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).