Cost of Living in Anchorage, AK

How far does a $70,000 salary go in Anchorage? Estimated income taxes on that gross salary total approximately $7,241 per year — Alaska levies no state income tax, so that figure covers federal tax only. Subtract rent for a 2-bedroom apartment ($1,631/month based on HUD Fair Market Rents for the Anchorage metro area) and the estimated annual take-home is $43,187, or roughly $3,599 per month for everything else: food, transportation, savings, and discretionary spending.

The Anchorage metro has a cost of living index of 120.8 according to the Bureau of Economic Analysis Regional Price Parities (national average = 100). At 21% above average, Anchorage is a noticeably expensive metro — groceries, services, and everyday purchases cost more than in most of the country.

At a $70,000 salary, the estimated 2-bedroom rent in Anchorage represents approximately 28% of gross income. That approaches the 30% threshold commonly used to define affordability. A smaller unit or a higher salary would improve the picture. Alaska's zero income tax helps offset the rent burden compared to otherwise similar cities that also levy state income tax.