While at first glance the cost of living (COL) may appear higher than that of places in the lower 48 -- after weighing out several factors, a person sees that it's really not quite as bad as they think when compared to several other major US cities in the lower 48. While fuel and food are more in Fairbanks, housing is more in Anchorage.  Based on things like food, housing, utilities, health, transportation, etc. -- The two biggest Alaska cities pretty well hold their own.

 

In addition, one must consider the fact that there is

 

1)  NO state income tax !

2) NO state sales tax !

&

3) Alaskans are paid a dividend from the Permanent Fund every year!