Alaska vs Arizona: Tax & Cost of Living Comparison
A comprehensive side-by-side comparison of taxes, cost of living, housing, income, and insurance costs between Alaska and Arizona.
State 1
Alaska
AK
State 2
Arizona
AZ
No Income Tax State
Alaska has no state income tax, which can mean significant savings for residents compared to Arizona (2.50% top rate).
| Category | Alaska | Arizona |
|---|---|---|
| Income Tax Rate | No Income TaxBetter | 2.50% |
| Property Tax Rate | 1.04% | 0.62%Better |
| Property Tax (on Median Home) | $3,536/yr | $2,449/yrBetter |
| Sales Tax Rate | No Sales TaxBetter | 5.60% |
| Cost of Living Index | 127 | 103Better |
| Median Home Price | $340,000Better | $395,000 |
| Median Household Income | $77,800Better | $68,000 |
| Avg. Auto Insurance | $1,480/yrBetter | $1,860/yr |
| Avg. Home Insurance | $1,200/yrBetter | $1,950/yr |
Cost of Living Comparison
Index relative to national average (100)
Median Home Price
Alaska
$340,000
Property Tax: $3,536/yr
Arizona
$395,000
Property Tax: $2,449/yr
Alaska homes are 13.9% cheaper than Arizona homes.
Median Household Income
Alaska
$77,800
Arizona
$68,000
Alaska households earn $9,800 more per year on average.
Insurance Costs
| Type | Alaska | Arizona | Difference |
|---|---|---|---|
| Auto Insurance | $1,480/yr | $1,860/yr | $380/yr |
| Home Insurance | $1,200/yr | $1,950/yr | $750/yr |
| Total Insurance | $2,680/yr | $3,810/yr | $1,130/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.
Alaska
-27.1
More Affordable
Arizona
36.5
The Bottom Line
Alaska offers lower income tax, lower sales tax, more affordable housing, higher median income compared to Arizona. Meanwhile, Arizona offers lower property tax, lower cost of living. Overall, Alaska edges ahead in our weighted financial comparison.
Alaska Advantages
- +Lower income tax
- +Lower sales tax
- +More affordable housing
- +Higher median income
Arizona Advantages
- +Lower property tax
- +Lower cost of living