Alaska vs New Mexico Cost of Living
Purchasing power
Your $75,000 is worth different amounts in each state
$59,195
in Alaska
$80,043
in New Mexico
Each cell = 1% of purchasing power. Green = value, red = gap.
Spending breakdown
Estimated annual spending on a $75,000 salary
What things actually cost
Real dollar costs side by side
Category breakdown
| Category | Alaska | New Mexico | Difference |
|---|---|---|---|
| Housing | 123.6 | 88.6 | +40% |
| Groceries | 125.0 | 97.0 | +29% |
| Utilities | 156.5 | 83.8 | +87% |
| Transportation | 120.2 | 93.6 | +28% |
| Healthcare | 139.2 | 108.3 | +29% |
| Dining & Misc | 122.6 | 97.2 | +26% |
| Overall | 126.7 | 93.7 | +35% |
Index values relative to national average (100). Positive difference = more expensive in Alaska.
What things actually cost
| Item | Alaska | New Mexico | Difference |
|---|---|---|---|
| Median home price | $340,000 | $290,000 | +$50,000 |
| Average 2BR rent | $1,730/mo | $1,240/mo | +$490 |
| Gas price | $3.95/gal | $3.42/gal | +$0.53 |
| Electric bill | $196/mo | $81/mo | +$115 |
| Infant childcare | $20,943/yr | $14,244/yr | +$6,699 |
Salary equivalent: Alaska → New Mexico
What a Alaska salary buys you in New Mexico, adjusted for cost of living.
| Salary in Alaska | Equivalent in New Mexico | Difference |
|---|---|---|
| $50,000 | $36,977 | +$13,023 |
| $75,000 | $55,466 | +$19,534 |
| $100,000 | $73,954 | +$26,046 |
| $150,000 | $110,931 | +$39,069 |
| $200,000 | $147,908 | +$52,092 |
Positive = your money goes further in New Mexico. Based on overall COL index ratio.
Based on MERIC/C2ER 2025 composite indices. Dollar amounts from AAA, EIA, Zillow, and Child Care Aware.
Overview
Alaska is 35% more expensive than New Mexico overall. Alaska has an index of 126.7 vs 93.7 for New Mexico (national average = 100).
FAQ
Is it cheaper to live in Alaska or New Mexico?
New Mexico is cheaper to live in. Alaska is 35% more expensive overall. The biggest driver is housing — median home prices are $340,000 in Alaska vs $290,000 in New Mexico.
Is New Mexico cheaper than Alaska?
Yes, New Mexico is 35% cheaper than Alaska overall based on the MERIC/C2ER cost-of-living index. Housing, groceries, and utilities all factor into the difference.
Is Alaska more expensive than New Mexico?
Yes, Alaska is 35% more expensive than New Mexico based on the MERIC/C2ER composite index. Housing is typically the largest factor in the difference.
What salary in New Mexico equals $100,000 in Alaska?
To maintain the same purchasing power as a $100,000 salary in Alaska, you would need approximately $73,954 in New Mexico. This is based on the overall cost-of-living index (126.7 vs 93.7).
How do housing costs compare between Alaska and New Mexico?
Housing is significantly cheaper in New Mexico. Median home prices are $340,000 in Alaska vs $290,000 in New Mexico — a $50,000 difference. Average 2-bedroom rent is $1,730/mo vs $1,240/mo.
What costs more in Alaska vs New Mexico?
Utilities is 87% higher in Alaska (index 156.5 vs 83.8). Housing is 40% higher in Alaska (index 123.6 vs 88.6). Healthcare is 29% higher in Alaska (index 139.2 vs 108.3).
Is gas cheaper in Alaska or New Mexico?
Gas averages $3.95/gallon in Alaska and $3.42/gallon in New Mexico — a $0.53 difference per gallon.
Alaska vs New Mexico cost of living — how do they compare?
Alaska has an overall cost-of-living index of 126.7 and New Mexico has 93.7 (national average = 100). Alaska is 35% more expensive overall. Use the calculator above to see how this affects your specific salary.
How do taxes compare between Alaska and New Mexico?
Cost of living is only part of the picture — state income taxes also affect your take-home pay. Alaska has no state income tax and no state sales tax. It funds government primarily through oil revenue. New Mexico uses a progressive income tax with 4 brackets and a top rate of 5.90% on income over $210,000. Use the Alaska vs New Mexico paycheck comparison to see how a specific salary compares after federal and state taxes, FICA, and deductions.
Do I need to file state tax returns in Alaska and New Mexico?
Alaska has no state income tax, so residents do not file a state tax return. New Mexico requires residents to file a state income tax return annually, typically due April 15. If you move between states mid-year, you typically file a part-year resident return in each state for the income earned while living there.
Where does this cost of living data come from?
Cost-of-living indices are from the MERIC/C2ER 2025 Annual Average. Dollar amounts use AAA gas prices (March 2025), EIA electricity rates (2024), Child Care Aware childcare costs (2024), Zillow home values (2024-2025), and BEA Regional Price Parities.
Related tools
- Alaska Cost of Living — Housing, groceries, gas, and more
- New Mexico Cost of Living — Housing, groceries, gas, and more
- Alaska vs New Mexico Paycheck Comparison — Compare take-home pay after taxes
- House Affordability in Alaska — How much house can you afford?
- House Affordability in New Mexico — How much house can you afford?
- Alaska Tax Brackets — See 2026 marginal rates
- New Mexico Tax Brackets — See 2026 marginal rates
- Alaska Mortgage Calculator — Estimate monthly payments with local rates
- New Mexico Mortgage Calculator — Estimate monthly payments with local rates
- Alaska Bonus Tax Calculator — See how bonuses are taxed differently
- New Mexico Bonus Tax Calculator — See how bonuses are taxed differently
- Gross-Up Calculator — Find the salary you need to hit a target take-home
- Salary to Hourly Converter — Convert annual salary to hourly rate
- Compare any two states
Based on MERIC/C2ER 2025 composite indices and publicly available price data. Cost of living varies significantly by metro area within a state. These are statewide averages.