Overall
Alabama feels cheaper overall
Alabama has the lower cost-of-living index, beating Alaska by 37.2 points on the overall affordability baseline.
See full data →
Quality of Life
Alabama vs Alaska: Cost of Living
Alabama is cheaper overall by 37.2 cost-of-living points, but Alaska has no state income tax, but Alabama has lower median home values.
National Rankings
Where They Rank Nationally
See where both states fall among all 50 states for cost of living.
Alabama
#5 · 88.6
Alaska
#46 · 125.8
Best
Worst
10 Best States — Cost of Living
Lower is better
#1
West Virginia
83.6
West Virginia
#2
Mississippi
85.5
Mississippi
#3
Arkansas
87.6
Arkansas
#4
Kentucky
88.0
Kentucky
#5
Alabama
88.6
Alabama
#6
Oklahoma
88.6
Oklahoma
#7
Missouri
90.0
Missouri
#8
Kansas
90.2
Kansas
#9
Iowa
91.0
Iowa
#10
Ohio
91.0
Ohio
Selected states
#46
Alaska
125.8
Alaska
Alabama ranks 5th and Alaska ranks 46th nationally for cost of living.
Overview
Cost of Living in context
A fast-reading view of the tradeoffs behind the raw cost numbers.
Housing
pay about 1.8x more for a home
Alabama has the lower median home value, while buying in Alaska costs materially more at the median.
See full data →Rent Pressure
Alaska puts less pressure on a median paycheck
Median rent takes a smaller share of household income in Alaska than in Alabama, which makes monthly budgeting easier.
See full data →Taxes
Alaska has no state income tax
Alaska gives residents a cleaner paycheck-level tax advantage, while Alabama still taxes income at the state level.
See full data →Cost stack
AlabamaOverall affordability
- Cost of living index
- 88.6
- Regional price parity
- 87.2
- Regular gas price
- $3.840/gal
- Electricity price
- 16.06 c/kWh
Housing
- Median gross rent
- $925/mo
- Median home value
- $174,600
- Owner costs w/ mortgage
- $1,500/mo
- Owner costs w/o mortgage
- $469/mo
Taxes
- State income tax
- 5.00%
- State sales tax
- 4.00%
- Property tax
- 0.38%
Income
- Median household income
- $54,943
- Income after median rent
- $3,654
- Minimum wage
- $7.25/hr
Laws
- Gun laws
- Permissive
- Alcohol system
- Control State
- Marijuana status
- Medical
AlaskaOverall affordability
- Cost of living index
- 125.8
- Regional price parity
- 102.7
- Regular gas price
- $4.619/gal
- Electricity price
- 25.52 c/kWh
Housing
- Median gross rent
- $1,352/mo
- Median home value
- $316,400
- Owner costs w/ mortgage
- $2,253/mo
- Owner costs w/o mortgage
- $698/mo
Taxes
- State income tax
- None (0%)
- State sales tax
- None (0%)
- Property tax
- 1.11%
Income
- Median household income
- $86,533
- Income after median rent
- $5,859
- Minimum wage
- $13.00/hr
Laws
- Gun laws
- Permissive
- Alcohol system
- License State
- Marijuana status
- Legal
What stands out
- Alabama has lower median home values.
- Alaska has no state income tax.
- Alabama has the lower overall cost index.
- Alaska has the higher median household income.
Affordability ratios
Home value to income
Alabama: 3.18x
Alaska: 3.66x
Rent to income
Alabama: 20.2%
Alaska: 18.7%
Owner costs to income
Alabama: 14.8%
Alaska: 16.8%
Related pages
What this means
Alabama vs Alaska: Cost of Living in context
Alabama's cost of living is 88.6, compared with 125.8 in Alaska. Composite cost of living index (100 = national average). Lower = more affordable.
Alabama
88.6
Alaska
125.8
Difference
37.2 points
People also ask
Alabama vs Alaska Cost of Living — common questions
QWhat is Alabama's cost of living?
Alabama's cost of living is 88.6.
QWhat is Alaska's cost of living?
Alaska's cost of living is 125.8.
QWhich state has a lower cost of living — Alabama or Alaska?
Alabama is cheaper overall by 37.2 cost-of-living points, but Alaska has no state income tax, but Alabama has lower median home values.
More comparisons: Alabama vs Alaska
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Data source and freshness
Data period
2026 incorporated quarterly release
Dataset reviewed
July 23, 2026
Method note
Composite index where 100 equals the national average.