Thinking about moving to Alaska? The state ranks #2 for healthcare and among the top 10 in economic opportunities in the country. Plus, with its no income or sales tax policy and year-round access to nature, Alaska is one of the most desired states to move to in 2025.
But the move comes with trade-offs. Alaska is the most seismically active state in the country. Still, many are choosing cities like Anchorage, Fairbanks, and Juneau for lower living costs and a better quality of life.
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AT A GLANCE:
- Alaska ranks #2 across the country for its robust healthcare system.
- The average cost of living in Alaska is 24% higher than the national average. Plus, housing is slightly more expensive than the U.S. average.
- With no state income and sales tax, Alaska ranks #1 for the lowest tax burden on individuals.
- The state offers a Permanent Fund Dividend (PFD), an annual payment from the state’s oil and gas revenue.
- Expect to pay between $2,200 and $6,400 for your move, depending on how far you’re moving and the size of your belongings.
- The climate in Alaska is diverse, from temperate and wet in the panhandle region to extremely cold and continental in the interior.
3 Reasons to Move to Alaska
Why settle for just sunny beaches when you can also enjoy the high life? Browse through over thousands of mansions, high-rise penthouses, and spacious luxury homes for sale in Alaska, and enjoy the finest the state has to offer.
1. Permanent Fund Dividend
The Permanent Fund Dividend (PFD) is an annual payment given to eligible Alaska residents from the state’s oil revenue. In 2025, the dividend is $1,000 per person. To qualify, residents must live in Alaska for at least one year and meet other eligibility requirements.
To qualify for the benefit in 2025, you must be a resident of Alaska for the entire previous year (2024). Additionally, you must also intend to remain an Alaska resident and not claim residency in any other state.
2. Tax Benefits
Alaska is one of the 9 states with no income tax. Plus, the state does not levy a sales tax, though cities may charge a local sales tax of 0%–7.5% depending on the city you live in. Also, there is no tax on Permanent Fund Dividend (PFD).
Although property taxes in Alaska are among the highest, the state offers optional property tax exemptions. This includes an optional exemption of up to $50,000 and a $150,000 exemption for senior citizens and veterans with disabilities.
3. Natural Environment
With just 1 person per square mile, Alaska is the least densely populated state in the U.S. Plus, it has 17 of the 20 tallest peaks in North America, including Denali, at 20,310 feet. The state also features over 100,000 glaciers, 3,000 rivers, and more than 3 million lakes.
Alaska’s wilderness spans 663,000 square miles, including Kenai Fjords National Park and the Tongass National Forest, the largest in the U.S. Fairbanks is one of the best spots to see the Aurora Borealis, making Alaska a top destination for outdoor activities.
Pros and Cons of Living in Alaska
Here are the drawbacks and benefits of living in Alaska:
| ✅ Pros | ❌ Cons |
|---|---|
| 1. With no state income or sales tax, the state ranks #1 for the lowest tax burden in the country. | 1. The winters in Alaska are extremely harsh, with temperatures often dropping as low as -29°F. |
| 2. The state offers an annual Permanent Fund Dividend. For 2025, the amount of the dividend is $1,000 per resident. | 2. With the population density of 1 person per square mile, Alaska is mostly remote and sometimes can feel isolating. |
| 3. With over 100,000 glaciers, 3,000 rivers, and more than 3 million lakes, the outdoor opportunities are abundant in Alaska. | 3. The cost of living is 24% higher than the national average. Plus, the housing costs slightly more than the U.S. average. |
Things to Know Before Moving to Alaska 📌
Here are the things to keep in mind before relocating to Alaska:
1. Cost of Living in Alaska
The cost of living in Alaska is 24% higher than the national average. So, you’ll spend more on expenses like utilities, food, healthcare, and transportation. Though renting a house is slightly less expensive than in the rest of the country.
The Last Frontier State is an appealing option compared to more popular states like California and New York, where living costs are 58% and 30% above the national average.
2. Infrastructure and Transportation
Alaska faces several challenges due to its aging infrastructure. 37% of the roads in the state are in poor or fair condition. Plus, the state needs $1.4 billion in the coming years to improve its current drinking water infrastructure.
State officials are working to improve its road and water infrastructure. Alaska is set to receive $3.7 billion over five years in federal funding to improve its highways and roads.
3. Climate in Alaska
Alaska’s climate ranges from temperate and wet in the panhandle to extremely cold and continental in the Interior. Summers are warm with temperatures ranging from 51°F-73°F, while the winters are extremely cold with temperatures ranging from -29°F-13°F.
However, Alaska ranks #1 as the most seismically active state in the country. Plus, volcanic eruptions, tsunamis, and wildfires also pose significant risks in the state. It’s crucial to check FEMA-designated high-risk zones in your city before moving to Alaska.
4. Laws and Regulations
- Vehicle and Driver’s License Registration: You must register your vehicle within 10 days of establishing residency and obtain an Alaska driver’s license within 90 days. You will need proof of residency, insurance, and title documents for registration.
- Moving to Alaska with Guns: Adults aged 21 years or older require no permit to carry a firearm. Both open and concealed carry are allowed without a permit. Though the permits are not necessary, they are useful while traveling to another state.
- Recreational Marijuana: Adults aged 21 years and older can possess up to 1 ounce of marijuana and cultivate up to 6 plants (no more than 3 mature) for personal use. Gifting or sharing up to 1 ounce to adults aged 21 years or older is also allowed.
- Moving to Alaska with Pets: There is no statewide law requiring pet licensing and vaccination in Alaska. However, several counties have their own pet registration and vaccination laws. Visit your county website to learn about pet registration laws in your area.
5. Tax Burden in Alaska
Alaska consistently ranks #1 for the lowest tax burden in the country. Here’s a breakdown:
- Income Tax in Alaska: Alaska is among the 9 states in the country that do not levy any state income tax. Plus, cities are not allowed to levy any additional local income tax.
- Sales Tax in Alaska: Alaska has no state sales tax. However, cities are allowed to levy local sales tax ranging from 0%-7.5% depending on the city you live in. The average effective local sales tax rate in Alaska is 1.82% in 2025.
- Property Tax in Alaska: Property taxes in Alaska are levied and managed at the county level. The average effective property tax rate in Alaska is 1.14%. On average, a homeowner pays around $3,785 in property taxes for a house valued at $333,300.
How to Move to Alaska?
Before buying a house in Alaska, follow this step-by-step guide for a seamless move:
1. How to Plan Your Logistics?
- If you want to skip all the heavy lifting, consider hiring a professional mover. You can expect to pay around $40-$60 per hour. However, this amount can vary depending on the size of your belongings and the distance.
- If you want to DIY, renting a truck is a better option. The average cost to rent a truck in Alaska ranges between $30–$105 per day. Be sure to factor in additional charges for mileage, fuel, and insurance.
2. How to Set Up Utilities?
Getting your utilities set up is a straightforward process in Alaska:
- Electricity and Gas: Depending on your city in Alaska, energy services are provided by several local, regional, and municipal utility companies. You can visit their website to check availability in your area and begin the service.
- Water and Sewer: These services in Alaska are usually provided by local municipalities, along with a few private companies. Visit your city website to find out the appropriate service provider for your area.
- Internet and Cable: GCI and Alaska Communications are among the largest internet and cable service providers in Alaska. Costs typically range from $50 to $80. Visit their respective websites to know more about availability in your area.
3. How to Enroll Your Kids in Schools in Alaska?
Most schools in Alaska offer online registration:
- For Kindergarten: Children must be at least 5 years old for enrollment in kindergarten, and 7 years old by September 1 for enrollment in first grade. You will need the child’s birth certificate, vaccination records, proof of residency, and a photo ID.
- For Older Kids: You’ll need all the above-mentioned documents, in addition to transcripts and a withdrawal form from their previous school. If your kids are high school athletes, check their athletic eligibility with the new school before enrolling.
- Transfers and Special Cases: Transfers and special cases in Alaska are typically managed by the local school districts. You can visit their website or directly reach out to the school district office for assistance in the enrollment process.
4. How to Transfer or Find New Employment in AK?
- Work From Home: 21.4% of employees in Alaska work from home. If you are someone who works remotely, just ask your employer about any state-specific tax and employment laws.
- Find a New Job: AlaskaJobs is a state-run job portal that allows you to search jobs, apply for positions, track your application, and receive job alerts. You can also visit job portals like Indeed and LinkedIn to search and apply for jobs in your city.
5. How to Find the Perfect House?
The Alaska housing market is highly competitive for homebuyers. Recent trends show that 18.9% of listed homes sold above the list price, and the sale-to-list price ratio is 98.1%. This indicates higher demand and leaves homebuyers with limited room for negotiation.
- In popular cities like Anchorage, Fairbanks, and Juneau, the average rent is around $1,950. It typically depends on the neighborhood you’re moving to, and the available amenities.
- If you plan to buy a home in a popular city, homes for sale in Anchorage cost around $402K. Meanwhile, cities like Kenai and Fairbanks offer more affordable options, with median home prices of $316K and $288K respectively.
Should I Move to Alaska?
Yes, you should definitely move to Alaska. The state combines new opportunities, a good quality of life, and friendly communities. However, relocating to Alaska isn’t easy. It takes time, careful planning, and effort to find the perfect place to call your home.
With Houzeo, Alaska’s best home-buying website, buying a house in the Last Frontier State is simple. You can browse through the latest listings, save your favorites, schedule showings, and submit offers, all at your fingertips.
» NEED MORE CLARITY? Read these exclusive Houzeo reviews and learn why the platform is the best in America’s competitive housing market.
Data Sources
To help you make a smart move to Alaska, we analyzed key data points that impact relocation costs, lifestyle, and employment prospects. We’ve sourced reliable, up-to-date data across the following categories:
- Statistical Atlas: Major employers
- Zillow: Average rent, Median home price
- Moverjunction: Estimated moving costs
- Thisoldhouse: DIY truck rental rates, Average cost of moving
By backing our insights with real numbers, we give you a clear picture of what it really takes to relocate to Alaska, long before the moving boxes are packed.
