Quality of Life

Alaska vs California: Cost of Living

Alaska is cheaper overall by 12.7 cost-of-living points, but Alaska has no state income tax, but Alaska has lower median home values.

Alaska

AK · West

Winner

125.8

Composite cost of living index (100 = national average). Lower = more affordable.

California

CA · West

138.5

Composite cost of living index (100 = national average). Lower = more affordable.

Visual comparison

Alaska125.8

California138.5

Difference: 12.7 points — Alaska leads.

National Rankings

Where They Rank Nationally

See where both states fall among all 50 states for cost of living.

Alaska #46 · 125.8

California #48 · 138.5

Best Worst

10 Best States — Cost of Living

Lower is better

West Virginia

83.6

Mississippi

85.5

Arkansas

87.6

Kentucky

88.0

Alabama

88.6

Oklahoma

88.6

Missouri

90.0

Kansas

90.2

Iowa

91.0

#10

Ohio

91.0

Selected states

#46

Alaska

125.8

#48

California

138.5

Alaska ranks 46th and California ranks 48th nationally for cost of living.

Overview

Cost of Living in context

A fast-reading view of the tradeoffs behind the raw cost numbers.

Overall

Alaska feels cheaper overall

Alaska has the lower cost-of-living index, beating California by 12.7 points on the overall affordability baseline.

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Housing

pay about 2.2x more for a home

Alaska has the lower median home value, while buying in California costs materially more at the median.

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Rent Pressure

Alaska puts less pressure on a median paycheck

Median rent takes a smaller share of household income in Alaska than in California, which makes monthly budgeting easier.

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Taxes

Alaska has no state income tax

Alaska gives residents a cleaner paycheck-level tax advantage, while California still taxes income at the state level.

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Cost stack

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 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

California

Overall affordability

Cost of living index: 138.5
Regional price parity: 113.4
Regular gas price: $5.929/gal
Electricity price: 30.29 c/kWh

Housing

Median gross rent: $1,856/mo
Median home value: $693,700
Owner costs w/ mortgage: $3,001/mo
Owner costs w/o mortgage: $882/mo

Taxes

State income tax: 13.30%
State sales tax: 7.25%
Property tax: 0.70%

Income

Median household income: $84,097
Income after median rent: $5,152
Minimum wage: $16.50/hr

Laws

Gun laws: Restrictive
Alcohol system: License State
Marijuana status: Legal

What stands out

Alaska has lower median home values.
Alaska has no state income tax.
Alaska has the lower overall cost index.
Alaska has the higher median household income.

Affordability ratios

Owner costs to income

Alaska: 16.8%

California: 21.0%

What this means