According to SmartAsset, an Alaskan needs to make at least $58,000 a year to live comfortably in the 49th State. That’s less than Massachusetts but nearly double what it costs to live comfortably in Mississippi.
Of course, the definition of “comfortably” is elastic.
In Massachusetts, the top end of the national scale, a Bay Stater needs between $67,000 and $200,000 to be considered middle class, the financial advisor company says. That state’s high cost of living comes from high taxes, expensive housing, and generous social welfare payments.
In Alaska, the income needed is between $58,000 and $173,000 to be considered middle class, SmartAsset says in its latest report.
Although prices are high, taxes in Alaska are generally lower, with the exception of property taxes in organized cities and boroughs. Anchorage homeowners, for instance, pay over $3,500 a year for a lower-end home or condo valued at $269,900. The average Anchorage home is now assessed between $460,000 and $490,000, which means much higher property tax bills, likely over $7,000 annually to the Municipality.
The US Census Bureau puts Alaska’s median household income at $89,000, higher than the median household income for the whole country, which is $75,000 (half of Americans earn les than $75,000).
For a homeowner in Anchorage making $70,000, that could mean easily 10% of his income is going to pay property taxes to the municipality.
Meanwhile, in Mississippi, the minimum household income that is considered middle class is $36,162. Mississippi is a cheap place to live in due to low housing costs and relatively low tax burdens. Food and sundry are also cheaper in Mississippi, in part because wages are lower and are not driving up prices. There are, of course, also alligators and water moccasins, but the cost of ammunition is going to be low.
See the graphic that breaks down every state by what is needed to be middle class in 2025 at this VisualCapitalist link.
According to SmartAsset, Anchorage’s cost of living increased by 2.90% over the previous year and is 22.8% higher than the national average.
