State comparison
Alaska vs Illinois: which state is better to live in?
Alaska costs a median household about $6,500 a year less in state and local taxes than Illinois, mostly because it has no income tax, though everyday prices run higher there (cost of living index 126 against 92).
Alaska
Low tax burden · COL index 126
Wins 8 categories
Illinois
High tax burden · COL index 92
Wins 7 categories
Taxes: Alaska vs Illinois
Alaska has no state income tax. Illinois has a flat 4.95% income tax, which works out to 5.0% on a median income of $74,580, or $3,692 a year. Alaska wins on income tax at 2026 rates.
Property tax is 1.04% of home value a year in Alaska and 1.73% in Illinois (Tax Foundation, 2023); on each state's median home that is $3,536 against $4,758, so Alaska has the lower rate.
Combined state and local sales tax averages 1.76% in Alaska and 8.82% in Illinois; Alaska is lower.
Add it up for a household earning $74,580 (the 2022 national median) and owning the median home: $3,930 a year in Alaska, $10,423 in Illinois. Alaska is cheaper on total state and local tax.
Housing and cost of living
Alaska's cost of living index is 126 and Illinois's is 92, where 100 is the national average; Illinois is about 37% cheaper day to day.
The median home costs $340K in Alaska and $275K in Illinois (Zillow, 2024), a $65K gap in Illinois's favor. A two-bedroom rents for about $1,350 a month in Alaska and $1,400 in Illinois.
Home insurance averages $1,400 a year in Alaska and $1,900 in Illinois, so Alaska is cheaper to insure.
Safety
Violent crime runs 838 incidents per 100,000 residents in Alaska and 413 in Illinois (FBI Crime Data Explorer, 2023); Illinois is the safer state by that measure, with a rate 103% lower. Property crime is 2,544 per 100,000 in Alaska against 1,666 in Illinois, again favoring Illinois.
Health
Life expectancy is 75 years in Alaska and 77.2 in Illinois (County Health Rankings, 2024), a 2.2-year edge for Illinois. The Commonwealth Fund's 2023 scorecard ranks Alaska's health system 48th of 50 and Illinois's 20th, so Illinois scores better on care.
12.1% of Alaska residents have no health insurance against 7.4% in Illinois, which favors Illinois. Both states expanded Medicaid.
Schools
Education Week's 2023 Quality Counts report ranks Alaska's K-12 schools 35th in the country and Illinois's 16th, 19 places apart in Illinois's favor. Neither state runs a school-choice voucher program.
Laws and politics
In the 2024 presidential election Alaska went to Trump by 13 points and Illinois went to Harris by 14 points.
Alaska has permitless carry and a Giffords gun-law grade of F; Illinois has shall-issue carry permits and a grade of A, so Illinois regulates guns more tightly and Alaska is the friendlier state for gun owners.
Abortion is protected by state law in both states, and marijuana is legal for adults in both as of 2026. The minimum wage is $11.73 an hour in Alaska and $14.00 in Illinois.
Climate and risk
Natural disaster risk is moderate in Alaska (earthquake, tsunami, wildfire) and moderate in Illinois (tornado, flood, blizzard). Annual average air quality index is 29 in Alaska and 45 in Illinois (under 50 is good), favoring Alaska.
Tax figures use a household earning the national median income and owning each state's median home, at tax year 2026 rates, last checked against state sources on 2026-09-14. The table below has every number.
Taxes
Housing & Cost of Living
Crime & Safety
Healthcare
Education
Childcare
Utilities & Daily Costs
Social Policy
Category wins
8
Alaska
7
Illinois
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Score For My Profile →Questions people ask
Is Alaska or Illinois better to live in?
Illinois wins more of the measures that decide a move. Alaska on taxes ($3,930 a year for a median household against $10,423); Illinois on everyday costs (index 92 against 126); Illinois on safety (413 violent crimes per 100,000 against 838); Illinois on schools (ranked 16th against 35th).
Which is cheaper, Alaska or Illinois?
Illinois is cheaper day to day: cost of living index 92 against 126. The median home is $340K in Alaska and $275K in Illinois (2024). On state and local taxes Alaska saves a median household about $6,500 a year.
Does Alaska or Illinois have lower taxes?
Alaska. A household earning $74,580 pays about $3,930 a year in Alaska ($0 income tax, $3,536 property tax on the median home and $394 in sales tax) and $10,423 in Illinois ($3,692 income tax, $4,758 property tax on the median home and $1,973 in sales tax), at 2026 rates.
Which is safer, Alaska or Illinois?
Illinois, on the FBI's 2023 figures. Violent crime is 838 per 100,000 residents in Alaska and 413 in Illinois; property crime is 2,544 against 1,666.
Which has better schools, Alaska or Illinois?
Illinois. Education Week's 2023 Quality Counts report ranks Alaska 35th of 50 for K-12 and Illinois 16th.
Is Alaska or Illinois better for retirees?
Alaska is friendlier to retirees on paper. Alaska does not tax Social Security, exempts pensions and has no estate or inheritance tax; Illinois does not tax Social Security, exempts pensions and has an estate tax. Property tax on a median home is $3,536 a year in Alaska and $4,758 in Illinois.