Is it cheaper to live in Fairbanks or Santa Fe?

Santa Fe, NM is cheaper. Its monthly baseline of $1,310 (1BR rent + utilities) runs about 3% below Fairbanks, AK's $1,350, mainly because of electricity costs.

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

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 Santa Fe.

Which has lower taxes, Fairbanks or Santa Fe?

Fairbanks is taxed under Alaska's rules (no state income tax and no state sales tax); Santa Fe under New Mexico's (a top state income tax rate of 5.90% and a 4.875% state sales tax).

Fairbanks vs Santa Fe Cost of Living 2026

Fairbanks

Alaska

$1,350/mo est.

Santa Fe

New Mexico

$1,310/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 $1,310 in Santa Fe, NM. Overall, Santa Fe, NM is roughly 3% cheaper to live in day-to-day than Fairbanks, AK, driven mainly by electricity costs.

Median household income is $72,077 in Fairbanks, AK and $70,110 in Santa Fe, NM — about 3% higher in Fairbanks, AK. Alaska has no state income tax and no state sales tax; New Mexico has a top state income tax rate of 5.90% and a 4.875% state sales tax.

Fairbanks, AK

Santa Fe, NM

Rent

Studio

$883

$969

+10% in Santa Fe, NM

1 Bedroom

$1,076

$1,167

+8% in Santa Fe, NM

2 Bedroom

$1,428

$1,559

+9% in Santa Fe, NM

3 Bedroom

$2,019

$1,733

+14% in Fairbanks, AK

Buying a Home

Median Home Value

$255,700

$411,500

+61% in Santa Fe, NM

Income

Median Household Income

$72,077

$70,110

+3% in Fairbanks, AK

Metro Median Wage (annual)

$61,810

$48,710

+21% in Fairbanks, AK

People & Lifestyle

Median Age

28.6 yr

46.4 yr

+17.8 yr in Santa Fe, NM

Homeownership

40.5%

62.8%

+22.3 pp in Santa Fe, NM

Bachelor's+ (25+)

26.5%

45.4%

+18.9 pp in Santa Fe, NM

Avg Commute

14.1 min

20.2 min

+6.1 min in Santa Fe, NM

Crime (per 100k/yr)

Violent Crime

726.1

843.3

+16% in Santa Fe, NM

Property Crime

3,504.2

5,189

+48% in Santa Fe, NM

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

51.9°F

+24.2°F in Santa Fe, NM

Annual Precipitation

10.8 in

13.5 in

+2.7 in in Santa Fe, NM

Gas

Regular Gasoline

$5.21/gal

$3.62/gal

+31% in Fairbanks, AK

Area: West Coast (PADD 5) vs Gulf Coast (PADD 3).

Utilities

Electricity (¢/kWh)

28.2

15.1

+47% in Fairbanks, AK

Natural Gas ($/MCF)

$17.35

$9.31

+46% in Fairbanks, AK

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

Groceries

Milk (gal)

$4.82

about equal

Bread (lb)

$2.04

about equal

Eggs (doz)

$2.19

about equal

Ground Beef (lb)

$7.36

about equal

Chicken (lb)

$2.01

about equal

Bananas (lb)

$0.70

about equal

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

State Taxes

Sales Tax (AK / NM)

None

4.875%

+4.9 pp in NM

Income Tax (top rate)

None

5.90%

+5.9 pp in NM

Fairbanks vs Santa Fe — FAQ

Is it cheaper to live in Fairbanks or Santa Fe?: Santa Fe, NM is cheaper. Its monthly baseline of $1,310 (1BR rent + utilities) runs about 3% below Fairbanks, AK's $1,350, mainly because of electricity costs.
How much more do you need to earn to live in Fairbanks than in Santa Fe?: 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 Santa Fe.
Which has lower taxes, Fairbanks or Santa Fe?: Fairbanks is taxed under Alaska's rules (no state income tax and no state sales tax); Santa Fe under New Mexico's (a top state income tax rate of 5.90% and a 4.875% 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).