State comparison
Minnesota vs Alaska: 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).
Minnesota
High tax burden · COL index 95
Wins 9 categories
Alaska
Low tax burden · COL index 126
Wins 8 categories
Taxes: Minnesota vs Alaska
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 has no state income tax. Alaska wins on income tax at 2026 rates.
Property tax is 1.02% of home value a year in Minnesota and 1.04% in Alaska (Tax Foundation, 2023); on each state's median home that is $3,417 against $3,536, so Minnesota has the lower rate.
Combined state and local sales tax averages 7.42% in Minnesota and 1.76% in Alaska; Alaska is lower.
Add it up for a household earning $74,580 (the 2022 national median) and owning the median home: $9,666 a year in Minnesota, $3,930 in Alaska. Alaska is cheaper on total state and local tax.
Housing and cost of living
Minnesota's cost of living index is 95 and Alaska's is 126, where 100 is the national average; Minnesota is about 33% cheaper day to day.
The median home costs $335K in Minnesota and $340K in Alaska (Zillow, 2024), a $5K gap in Minnesota's favor. A two-bedroom rents for about $1,450 a month in Minnesota and $1,350 in Alaska.
Home insurance averages $1,700 a year in Minnesota and $1,400 in Alaska, so Alaska is cheaper to insure.
Safety
Violent crime runs 286 incidents per 100,000 residents in Minnesota and 838 in Alaska (FBI Crime Data Explorer, 2023); Minnesota is the safer state by that measure, with a rate 193% lower. Property crime is 2,094 per 100,000 in Minnesota against 2,544 in Alaska, again favoring Minnesota.
Health
Life expectancy is 79.4 years in Minnesota and 75 in Alaska (County Health Rankings, 2024), a 4.4-year edge for Minnesota. The Commonwealth Fund's 2023 scorecard ranks Minnesota's health system 2nd of 50 and Alaska's 48th, so Minnesota scores better on care.
4.5% of Minnesota residents have no health insurance against 12.1% in Alaska, which favors Minnesota. Both states expanded Medicaid.
Schools
Education Week's 2023 Quality Counts report ranks Minnesota's K-12 schools 8th in the country and Alaska's 35th, 27 places apart in Minnesota's favor. Neither state runs a school-choice voucher program.
Laws and politics
In the 2024 presidential election Minnesota went to Harris by 4 points and Alaska went to Trump by 13 points.
Minnesota has shall-issue carry permits and a Giffords gun-law grade of B; Alaska has permitless carry and a grade of F, 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 $10.85 an hour in Minnesota and $11.73 in Alaska.
Climate and risk
Natural disaster risk is moderate in Minnesota (blizzard, tornado, flood) and moderate in Alaska (earthquake, tsunami, wildfire). Annual average air quality index is 32 in Minnesota and 29 in Alaska (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
9
Minnesota
8
Alaska
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Score For My Profile →Questions people ask
Is Minnesota or Alaska 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, Minnesota or Alaska?
Minnesota is cheaper day to day: cost of living index 95 against 126. The median home is $335K in Minnesota and $340K in Alaska (2024). On state and local taxes Alaska saves a median household about $5,700 a year.
Does Minnesota or Alaska have lower taxes?
Alaska. A household earning $74,580 pays about $9,666 a year in Minnesota ($4,588 income tax, $3,417 property tax on the median home and $1,660 in sales tax) and $3,930 in Alaska ($0 income tax, $3,536 property tax on the median home and $394 in sales tax), at 2026 rates.
Which is safer, Minnesota or Alaska?
Minnesota, on the FBI's 2023 figures. Violent crime is 286 per 100,000 residents in Minnesota and 838 in Alaska; property crime is 2,094 against 2,544.
Which has better schools, Minnesota or Alaska?
Minnesota. Education Week's 2023 Quality Counts report ranks Minnesota 8th of 50 for K-12 and Alaska 35th.
Is Minnesota or Alaska better for retirees?
Alaska is friendlier to retirees on paper. Minnesota taxes Social Security, partly exempts pensions and has an estate tax; Alaska does not tax Social Security, exempts pensions and has no estate or inheritance tax. Property tax on a median home is $3,417 a year in Minnesota and $3,536 in Alaska.