Overall
Alabama feels cheaper overall
Alabama has the lower cost-of-living index, beating Alaska by 37.2 points on the overall affordability baseline.
View detailed comparison
Cost of Living Comparison
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.
Alabama
AL • South
88.6
Composite cost of living index (100 = national average). Lower = more affordable.
Alaska
AK • West
125.8
Composite cost of living index (100 = national average). Lower = more affordable.
Visual Comparison
Alabama
88.6
Alaska
125.8
Difference: 37.2 points — Alabama leads.
Overview
A fast-reading view of the tradeoffs behind the raw cost numbers.
Living Costs
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.
View detailed comparisonRent 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.
View detailed comparisonTaxes
Alaska has no state income tax
Alaska gives residents a cleaner paycheck-level tax advantage, while Alabama still taxes income at the state level.
View detailed comparisonCost Stack
Alabama
Overall 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 with mortgage
-
Owner costs without mortgage
-
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
Alaska
Overall 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 with mortgage
-
Owner costs without mortgage
-
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
Related Pages
What This Means
Alabama vs Alaska: Cost of Living in context
Alabama has a cost of living of 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
Q What is Alabama's cost of living?
Alabama's cost of living is 88.6.
Q What is Alaska's cost of living?
Alaska's cost of living is 125.8.
Q Which 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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Sources: Core demographic data comes from the 2020 U.S. Census, with land area from U.S. Census Bureau TIGER files. Income, housing, affordability, and tax fields are maintained in our comparison dataset, with minimum wage data from the U.S. Department of Labor, gas prices from AAA, and electricity rates from the U.S. Energy Information Administration. Political control and election fields use 2024 presidential results together with National Conference of State Legislatures data. Gun-law labels use the Giffords scorecard, alcohol system data comes from NABCA, and marijuana status uses NCSL's state cannabis laws tracker.