Alabama vs Alaska: Tax & Cost of Living Comparison
A comprehensive side-by-side comparison of taxes, cost of living, housing, income, and insurance costs between Alabama and Alaska.
State 1
Alabama
AL
State 2
Alaska
AK
No Income Tax State
Alaska has no state income tax, which can mean significant savings for residents compared to Alabama (5.00% top rate).
| Category | Alabama | Alaska |
|---|---|---|
| Income Tax Rate | 5.00% | No Income TaxBetter |
| Property Tax Rate | 0.37%Better | 1.04% |
| Property Tax (on Median Home) | $777/yrBetter | $3,536/yr |
| Sales Tax Rate | 4.00% | No Sales TaxBetter |
| Cost of Living Index | 89Better | 127 |
| Median Home Price | $210,000Better | $340,000 |
| Median Household Income | $56,500 | $77,800Better |
| Avg. Auto Insurance | $1,560/yr | $1,480/yrBetter |
| Avg. Home Insurance | $1,850/yr | $1,200/yrBetter |
Cost of Living Comparison
Index relative to national average (100)
Median Home Price
Alabama
$210,000
Property Tax: $777/yr
Alaska
$340,000
Property Tax: $3,536/yr
Alabama homes are 38.2% cheaper than Alaska homes.
Median Household Income
Alabama
$56,500
Alaska
$77,800
Alaska households earn $21,300 more per year on average.
Insurance Costs
| Type | Alabama | Alaska | Difference |
|---|---|---|---|
| Auto Insurance | $1,560/yr | $1,480/yr | $80/yr |
| Home Insurance | $1,850/yr | $1,200/yr | $650/yr |
| Total Insurance | $3,410/yr | $2,680/yr | $730/yr |
Overall Financial Comparison
Weighted score combining income tax, property tax, sales tax, cost of living, housing, insurance, and income. A lower score indicates better overall financial affordability.
Alabama
39.3
Alaska
-27.1
More Affordable
The Bottom Line
Alabama offers lower property tax, lower cost of living, more affordable housing compared to Alaska. Meanwhile, Alaska offers lower income tax, lower sales tax, higher median income. Overall, Alaska edges ahead in our weighted financial comparison.
Alabama Advantages
- +Lower property tax
- +Lower cost of living
- +More affordable housing
Alaska Advantages
- +Lower income tax
- +Lower sales tax
- +Higher median income