Cost of Living: Anchorage, AK vs Montgomery, AL (2026)

Anchorage

Alaska
113
VS

Montgomery

Alabama
64

Anchorage is 77% more expensive than Montgomery.

$1,453/mo ↑ 37%
Median Rent
$1,059/mo ↓ 27%
$98,152/yr ↑ 76%
Median Income
$55,687/yr ↓ 43%
$375,900 ↑ 153%
Home Value
$148,500 ↓ 60%
$1,698/mo ↑ 66%
Owner Costs
$1,023/mo ↓ 40%
289,069
Population
198,440

Tax Comparison

0%
Income Tax
5.0%
0%
State Sales Tax
4.0%
1.04%
Property Tax
0.41%

Affordability

17.8%
rent-to-income
Affordability
22.8%
rent-to-income

Detailed Comparison

When comparing Anchorage, AK and Montgomery, AL, the overall cost of living indices are 113 and 64 respectively (national median = 100). Rent is $394/month cheaper in Montgomery, saving renters about $4,728/year.

Median household income is $42,465/year higher in Anchorage. Home values also differ significantly — the median in Anchorage is $375,900 compared to $148,500 in Montgomery.

Alaska has no state income tax, giving Anchorage residents a significant tax advantage over Alabama's 5.0% rate.

Frequently Asked Questions

Anchorage vs Montgomery — common questions

Is Anchorage or Montgomery cheaper to live in?
Based on our cost index, Montgomery is cheaper to live in with an index of 64 compared to 113 (US average = 100).
What is the rent difference between Anchorage and Montgomery?
Median rent in Anchorage is $1,453/month and in Montgomery it's $1,059/month — a difference of $394/month.
Which city has higher income, Anchorage or Montgomery?
Median household income is $98,152 in Anchorage and $55,687 in Montgomery. Median household income is $42,465/year higher in Anchorage.
How do taxes compare between Alaska and Alabama?
Alaska has 0% income tax, 0% sales tax, and 1.04% property tax. Alabama has 5.0% income tax, 4.0% sales tax, and 0.41% property tax.
Should I move to Anchorage or Montgomery?
It depends on your priorities. Anchorage has a cost index of 113 with median rent of $1,453/mo, while Montgomery has a cost index of 64 with rent of $1,059/mo. Consider income potential, tax burden, and lifestyle preferences alongside raw cost data.
View Anchorage details → View Montgomery details →

More Comparisons

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