State comparison
Alaska vs Minnesota: which state is better to live in?
Alaska costs a median household about $5,700 a year less in state and local taxes than Minnesota, mostly because it has no income tax, though everyday prices run higher there (cost of living index 126 against 95).
Alaska
Low tax burden · COL index 126
Wins 8 categories
Minnesota
High tax burden · COL index 95
Wins 9 categories
Taxes: Alaska vs Minnesota
Alaska has no state income tax. Minnesota has a graduated income tax topping out at 9.85%, which works out to 6.2% on a median income of $74,580, or $4,588 a year. Alaska wins on income tax at 2026 rates.
Property tax is 1.04% of home value a year in Alaska and 1.02% in Minnesota (Tax Foundation, 2023); on each state's median home that is $3,536 against $3,417, so Minnesota has the lower rate.
Combined state and local sales tax averages 1.76% in Alaska and 7.42% in Minnesota; 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, $9,666 in Minnesota. Alaska is cheaper on total state and local tax.
Housing and cost of living
Alaska's cost of living index is 126 and Minnesota's is 95, where 100 is the national average; Minnesota is about 33% cheaper day to day.
The median home costs $340K in Alaska and $335K in Minnesota (Zillow, 2024), a $5K gap in Minnesota's favor. A two-bedroom rents for about $1,350 a month in Alaska and $1,450 in Minnesota.
Home insurance averages $1,400 a year in Alaska and $1,700 in Minnesota, so Alaska is cheaper to insure.
Safety
Violent crime runs 838 incidents per 100,000 residents in Alaska and 286 in Minnesota (FBI Crime Data Explorer, 2023); Minnesota is the safer state by that measure, with a rate 193% lower. Property crime is 2,544 per 100,000 in Alaska against 2,094 in Minnesota, again favoring Minnesota.
Health
Life expectancy is 75 years in Alaska and 79.4 in Minnesota (County Health Rankings, 2024), a 4.4-year edge for Minnesota. The Commonwealth Fund's 2023 scorecard ranks Alaska's health system 48th of 50 and Minnesota's 2nd, so Minnesota scores better on care.
12.1% of Alaska residents have no health insurance against 4.5% in Minnesota, which favors Minnesota. Both states expanded Medicaid.
Schools
Education Week's 2023 Quality Counts report ranks Alaska's K-12 schools 35th in the country and Minnesota's 8th, 27 places apart in Minnesota'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 Minnesota went to Harris by 4 points.
Alaska has permitless carry and a Giffords gun-law grade of F; Minnesota has shall-issue carry permits and a grade of B, so Minnesota 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 $10.85 in Minnesota.
Climate and risk
Natural disaster risk is moderate in Alaska (earthquake, tsunami, wildfire) and moderate in Minnesota (blizzard, tornado, flood). Annual average air quality index is 29 in Alaska and 32 in Minnesota (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
9
Minnesota
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Score For My Profile →Questions people ask
Is Alaska or Minnesota better to live in?
Minnesota wins more of the measures that decide a move. Alaska on taxes ($3,930 a year for a median household against $9,666); Minnesota on everyday costs (index 95 against 126); Minnesota on safety (286 violent crimes per 100,000 against 838); Minnesota on schools (ranked 8th against 35th).
Which is cheaper, Alaska or Minnesota?
Minnesota is cheaper day to day: cost of living index 95 against 126. The median home is $340K in Alaska and $335K in Minnesota (2024). On state and local taxes Alaska saves a median household about $5,700 a year.
Does Alaska or Minnesota 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 $9,666 in Minnesota ($4,588 income tax, $3,417 property tax on the median home and $1,660 in sales tax), at 2026 rates.
Which is safer, Alaska or Minnesota?
Minnesota, on the FBI's 2023 figures. Violent crime is 838 per 100,000 residents in Alaska and 286 in Minnesota; property crime is 2,544 against 2,094.
Which has better schools, Alaska or Minnesota?
Minnesota. Education Week's 2023 Quality Counts report ranks Alaska 35th of 50 for K-12 and Minnesota 8th.
Is Alaska or Minnesota 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; Minnesota taxes Social Security, partly exempts pensions and has an estate tax. Property tax on a median home is $3,536 a year in Alaska and $3,417 in Minnesota.