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.
Dang it!!! Here I thought I’d made it into the “Holy Poly” level, bib and tucker wear. Nope, still in the carharts and Extatuffs.
Trump’s thinking on no income tax under $150,000, would look really good.
Cheers,
Johnson-Ketchikan
It is usually better if everyone pays some amount of tax just so they stay engaged and concerned about where the government is spending “our” money.
” 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” That person making $70K/year cannot possibly afford to buy even that lower-end home or condo, so 10% of his/her income on property taxes is a bogus statistic. But herein lies the problem: with rents on dry cabins in Fairbanks going over $1,000/month and ownership out of sight for most – no one can afford to live in Alaska. MARKET INVESTORS BEWARE THE COMING CRASH IN REAL ESTATE.
The market isn’t really that rich of course – these “values” are being driven by appraiser/assessors looking to fatten muni and borough coffers over tax caps by inflating assessments. Hopefully, your assessor is honest.
Being a retired Alaskan is sometimes difficult, with property and federal taxes. But I don’t think I could live anywhere else. Our family has been here forever.
If you look at the consumer price index on how much a dollar here is actually worth, we are at $.98. Not too bad considering that makes us the cheapest “west coast” state to live.
CA is the most expensive state, where a dollar there is worth only .88. Hawaii is .89
I was just down south in the Seattle area this month. Juneau seems a bargain now. Food prices are the same or higher, gas in WA has a climate change tax so you’ll pay about $5 per gallon. My favorite is the homeless tax placed on rental cars (in addition to the other taxes which doubles the cost).