Is it cheaper to live in Fairbanks or Raleigh?

Fairbanks, AK is cheaper. Its monthly baseline of $1,350 (1BR rent + utilities) runs about 11% below Raleigh, NC's $1,510, mainly because of rent.

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

To keep rent near the recommended 30% of gross income, you'd want to earn roughly $43,000 a year in Fairbanks versus $53,000 in Raleigh.

Which has lower taxes, Fairbanks or Raleigh?

Fairbanks is taxed under Alaska's rules (no state income tax and no state sales tax); Raleigh under North Carolina's (a top state income tax rate of 3.99% and a 4.75% state sales tax).

Fairbanks vs Raleigh Cost of Living 2026

Fairbanks

Alaska

$1,350/mo est.

Raleigh

North Carolina

$1,510/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 $1,510 in Raleigh, NC. Overall, Fairbanks, AK is roughly 11% cheaper to live in day-to-day than Raleigh, NC, driven mainly by rent.

Median household income is $72,077 in Fairbanks, AK and $82,424 in Raleigh, NC — about 13% higher in Raleigh, NC. Alaska has no state income tax and no state sales tax; North Carolina has a top state income tax rate of 3.99% and a 4.75% state sales tax.

Fairbanks, AK

Raleigh, NC

Rent

Studio

$883

$1,301

+47% in Raleigh, NC

1 Bedroom

$1,076

$1,323

+23% in Raleigh, NC

2 Bedroom

$1,428

$1,462

+2% in Raleigh, NC

3 Bedroom

$2,019

$1,715

+15% in Fairbanks, AK

Buying a Home

Median Home Value

$255,700

$377,800

+48% in Raleigh, NC

Income

Median Household Income

$72,077

$82,424

+14% in Raleigh, NC

Metro Median Wage (annual)

$61,810

$51,990

+16% in Fairbanks, AK

People & Lifestyle

Median Age

28.6 yr

34.7 yr

+6.1 yr in Raleigh, NC

Homeownership

40.5%

51.2%

+10.7 pp in Raleigh, NC

Bachelor's+ (25+)

26.5%

52.9%

+26.4 pp in Raleigh, NC

Avg Commute

14.1 min

23.4 min

+9.3 min in Raleigh, NC

Crime (per 100k/yr)

Violent Crime

726.1

491.5

+32% in Fairbanks, AK

Property Crime

3,504.2

2,838.4

+19% 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

60.6°F

+32.9°F in Raleigh, NC

Annual Precipitation

10.8 in

46.0 in

+35.2 in in Raleigh, NC

Gas

Regular Gasoline

$5.21/gal

$3.94/gal

+24% in Fairbanks, AK

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

Public Transit

Base Fare (one-way)

—

$1.25

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

Utilities

Electricity (¢/kWh)

28.2

14.7

+48% in Fairbanks, AK

Natural Gas ($/MCF)

$17.35

$30.10

+73% in Raleigh, NC

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 Raleigh, NC

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 / NC)

None

4.75%

+4.8 pp in NC

Income Tax (top rate)

None

3.99%

+4.0 pp in NC

Fairbanks vs Raleigh — FAQ

Is it cheaper to live in Fairbanks or Raleigh?: Fairbanks, AK is cheaper. Its monthly baseline of $1,350 (1BR rent + utilities) runs about 11% below Raleigh, NC's $1,510, mainly because of rent.
How much more do you need to earn to live in Fairbanks than in Raleigh?: To keep rent near the recommended 30% of gross income, you'd want to earn roughly $43,000 a year in Fairbanks versus $53,000 in Raleigh.
Which has lower taxes, Fairbanks or Raleigh?: Fairbanks is taxed under Alaska's rules (no state income tax and no state sales tax); Raleigh under North Carolina's (a top state income tax rate of 3.99% and a 4.75% 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).