Alaska Salaries 2025
America's last frontier with premium wages and no income tax
Median Household Income (Highest in USA)
Alaska Salary Overview 2025
Alaska boasts the highest median household income in the United States at $80,300—a reflection of both frontier wage premiums and the demanding conditions that require them. The state's combination of no state income tax, no statewide sales tax, and the annual Permanent Fund Dividend (PFD) creates unique financial advantages, though these are largely offset by the nation's highest cost of living.
The economy revolves around oil and gas (providing ~85% of state revenue), federal government and military, commercial fishing, tourism, and healthcare. The oil industry's dominance means Alaska's economy rises and falls with crude prices—boom periods bring abundant high-paying jobs, while busts trigger layoffs and out-migration.
Living in Alaska demands adjustment to extreme conditions: winter darkness (4 hours of daylight in Anchorage in December), extreme cold (interior temperatures reaching -40°F), isolation from the Lower 48, and limited consumer options. Those who thrive embrace the outdoor lifestyle, tight-knit communities, and adventure that defines frontier living. For comprehensive salary data, see salary trends 2025.
Alaska Salary Snapshot
| Metric | Alaska | National Average |
|---|---|---|
| Median Household Income | $80,300 | $74,580 |
| Mean Household Income | $102,000 | $97,300 |
| Per Capita Income | $40,500 | $37,638 |
| Minimum Wage (2025) | $11.73/hr | $7.25/hr (federal) |
| Cost of Living Index | 127 (27% above avg) | 100 |
| State Income Tax | 0% | Varies |
| PFD (2024) | $1,312/person | N/A |
Salaries by Alaska Region
Anchorage – State's Urban Center
Median Household Income: $84,000
Anchorage is Alaska's only true city, home to 40% of the state's population and most corporate headquarters. Oil company offices (ConocoPhillips, Hilcorp, BP legacy operations), healthcare systems (Providence, Alaska Native Medical Center), and state/federal agencies concentrate here. Engineers earn $95,000-$160,000, healthcare workers command premiums (RNs $80,000-$105,000), and even retail/service wages run 20-30% above Lower 48 rates.
Anchorage offers relative convenience—Costco, major retailers, restaurants—while maintaining access to wilderness. Housing averages $400,000, expensive but below many coastal cities for the income levels available.
Fairbanks – Interior Hub
Median Household Income: $72,000
Fairbanks serves as the gateway to interior Alaska and the North Slope oil fields. The University of Alaska Fairbanks, Fort Wainwright, and Eielson Air Force Base anchor employment. Extreme temperatures (-40°F winters, 90°F summers) create unique challenges. Military and federal positions follow GS scales with significant locality adjustments (+25-30%). Pipeline and North Slope support services provide industrial employment.
North Slope / Prudhoe Bay – Oil Fields
Average Worker Income: $120,000+
The North Slope oil fields offer Alaska's highest wages for those willing to work rotational schedules (typically 2 weeks on, 2 weeks off). Petroleum engineers $140,000-$220,000, drilling specialists $100,000-$180,000, operators $80,000-$130,000, even camp cooks $60,000-$90,000. Workers fly in from Anchorage or Fairbanks; no permanent civilian population exists. Harsh conditions, isolation, and demanding work justify premium compensation.
Juneau – State Capital
Median Household Income: $92,000
Juneau, accessible only by air or sea, houses state government and tourism operations. Government wages follow Alaska pay scales; tourism provides seasonal employment. The isolation creates unique community dynamics. Housing is expensive ($450,000+ median) with limited inventory. Many state workers eventually transfer to Anchorage for lifestyle considerations.
Mat-Su Valley (Wasilla, Palmer)
Median Household Income: $78,000
The Mat-Su Valley, an hour north of Anchorage, offers more affordable housing ($350,000 median) while maintaining Anchorage job access. Many workers commute. The area has grown rapidly, attracting families seeking space and lower costs while retaining city employment.
| Region | Median Income | Cost of Living | Key Industries |
|---|---|---|---|
| Anchorage | $84,000 | 125 | Oil HQs, Healthcare, Services |
| Fairbanks | $72,000 | 120 | Military, University, Support |
| North Slope | $120,000+ | N/A (camp) | Oil & Gas |
| Juneau | $92,000 | 135 | State Government, Tourism |
| Mat-Su Valley | $78,000 | 115 | Commuter, Retail, Construction |
Top Paying Industries in Alaska
Oil & Gas
Oil dominates Alaska's economy and offers premium wages. North Slope operators earn $80,000-$130,000, engineers $120,000-$200,000+, and specialized technicians $90,000-$150,000. Anchorage-based corporate positions pay $80,000-$180,000+. Industry volatility means layoffs during downturns; smart workers save aggressively during boom periods.
Healthcare
Healthcare commands Alaska's highest sustainable premiums due to chronic workforce shortages. Physicians earn $280,000-$500,000+ (specialists in remote areas even higher). RNs earn $75,000-$105,000, significantly above national averages. Travel nurses in Alaska command $3,000-$5,000/week. Alaska Native health corporations offer competitive packages with cultural mission.
Federal Government & Military
Military bases (JBER in Anchorage, Fort Wainwright and Eielson in Fairbanks) and federal agencies provide stable employment. GS positions receive Alaska locality adjustments of 25-32%, making federal jobs highly competitive. Military members receive COLA (Cost of Living Allowance) supplements.
Commercial Fishing
Alaska's fishing industry offers seasonal fortunes. Experienced deckhands on successful boats can earn $50,000-$150,000 in 3-4 month seasons. Captains and boat owners earn significantly more in good years. Processing plant workers earn $15-$25/hour with overtime. The work is demanding, dangerous, and seasonal.
| Industry | Entry Level | Mid-Career | Senior Level |
|---|---|---|---|
| Oil & Gas Engineering | $95,000 | $140,000 | $200,000+ |
| Healthcare (Physicians) | $280,000 | $380,000 | $500,000+ |
| Nursing (RN) | $72,000 | $88,000 | $105,000+ |
| Federal (GS w/ locality) | $55,000 | $85,000 | $130,000+ |
| Construction Trades | $55,000 | $80,000 | $110,000+ |
Alaska Tax Advantage
No State Income Tax
Alaska is one of seven states with no personal income tax. Combined with no statewide sales tax (though some localities impose sales taxes up to 7.5%), Alaska offers significant tax advantages:
| Annual Salary | AK Tax | CA Tax | Annual Savings |
|---|---|---|---|
| $80,000 | $0 | $5,200 | $5,200 |
| $100,000 | $0 | $7,100 | $7,100 |
| $150,000 | $0 | $12,500 | $12,500 |
| $200,000 | $0 | $18,200 | $18,200 |
Permanent Fund Dividend (PFD)
Alaska's unique PFD distributes oil wealth to residents. Every Alaskan resident (adults and children) who meets residency requirements receives an annual dividend. Recent amounts:
• 2024: $1,312 per person
• 2023: $1,312 per person
• 2022: $3,284 per person
A family of four receives $5,000-$13,000 annually depending on the dividend amount—meaningful supplemental income, particularly for lower-wage workers.
Property Tax
Property taxes vary by borough (Alaska's equivalent of counties). Anchorage averages 1.2% of assessed value; some areas have no property tax. Overall property tax burden is moderate compared to many states.
Alaska Cost of Living Analysis
Alaska's cost of living index of 127 (27% above average) reflects the expense of shipping goods, heating costs, limited competition, and frontier logistics. Some categories exceed national averages by 50% or more.
| Expense | Alaska | National Avg |
|---|---|---|
| Housing Index | 130 | 100 |
| Median Home Price | $385,000 | $420,000 |
| Median Rent (2BR) | $1,450 | $1,400 |
| Groceries Index | 130 | 100 |
| Utilities Index | 155 | 100 |
| Transportation Index | 115 | 100 |
| Healthcare Index | 145 | 100 |
The Real Cost Picture
Groceries: A gallon of milk costs $4-$6 in Anchorage, $8-$12 in rural villages. Fresh produce is expensive and limited. Many Alaskans supplement with hunting, fishing, and gardening.
Utilities: Heating costs are substantial—$300-$600/month in winter depending on home size and location. Electricity runs $0.20-$0.50/kWh depending on area.
Transportation: No road access to Juneau, most of Southeast, or rural Alaska. Bush communities require air travel for everything. Vehicle prices run 10-20% above Lower 48.
Healthcare: Limited specialists; complex cases often require medevac to Seattle. Travel costs add to healthcare expenses.
Purchasing Power Reality
Despite high nominal wages, Alaska's purchasing power is mixed. An $80,000 Alaska salary provides roughly equivalent lifestyle to:
• $65,000 in Dallas, TX
• $70,000 in Denver, CO
• $55,000 in Kansas City
The tax advantages help, but high costs consume much of the wage premium.
Highest Paying Jobs in Alaska 2025
| Occupation | Average Salary | Top 10% Earn |
|---|---|---|
| Physicians/Surgeons | $340,000 | $500,000+ |
| Petroleum Engineers | $165,000 | $220,000+ |
| Dentists | $200,000 | $320,000+ |
| Airline Pilots (Bush) | $110,000 | $160,000+ |
| IT Directors | $140,000 | $180,000+ |
| Pharmacists | $140,000 | $165,000+ |
| Nurse Practitioners | $125,000 | $155,000+ |
| Drilling Supervisors | $145,000 | $190,000+ |
| Commercial Fishing Captains | $100,000 | $200,000+ |
| Construction Managers | $115,000 | $155,000+ |
Working in Remote Alaska
Many high-paying Alaska jobs involve rotational or remote work:
Rotational Work (2 on / 2 off)
North Slope oil field and mining positions typically work 2 weeks on, 2 weeks off. Workers fly to Anchorage or Fairbanks, then to remote camps. During "on" periods, expect 12-hour shifts, 7 days/week. Housing, food, and transportation are provided. Many workers maintain primary residences in Lower 48 states.
Bush Alaska
Rural communities ("the Bush") accessible only by small aircraft offer premium wages for teachers, healthcare workers, and public safety. Teachers earn $60,000-$90,000+ with housing provided. Village health aides earn $40,000-$60,000 with training. The lifestyle requires cultural adaptability, comfort with isolation, and resourcefulness.
Seasonal Work
Summer brings fishing, tourism, and construction opportunities:
• Fishing deckhands: $300-$1,000/day during peak season
• Cannery workers: $12-$18/hour + overtime (lots of it)
• Tour guides: $15-$25/hour + tips
• Construction: Premium summer rates, long hours
Frequently Asked Questions
Is Alaska worth it financially?
Depends on your situation. For oil/gas professionals, healthcare workers, and skilled trades, Alaska offers exceptional earning opportunities. For general office workers or retail employees, the wage premium may not offset costs. The no-income-tax advantage benefits high earners most.
Can I actually handle the weather?
Anchorage is comparable to Minneapolis—cold but manageable for most. Fairbanks and interior Alaska are significantly more extreme (-40°F is common). Southeast Alaska (Juneau, Ketchikan) is milder but very rainy. Visit in winter before committing.
What's the darkness really like?
Anchorage gets ~5.5 hours of daylight on the winter solstice. Fairbanks gets ~3.5 hours. Many residents experience seasonal mood effects; light therapy and vitamin D are common. Conversely, summer offers 18-24 hours of daylight—endless outdoor opportunities.
Should I take a North Slope job?
North Slope work pays exceptionally well but demands sacrifice. Two weeks in isolated camps with 12-hour shifts suits some personalities; others struggle. Many workers use it to accelerate savings, pay off debt, or build nest eggs. Interview current workers honestly about the lifestyle before committing.
Is Alaska good for families?
Anchorage and Mat-Su Valley offer conventional family life with good schools, activities, and community. The outdoor lifestyle—hiking, fishing, skiing—appeals to active families. Remote areas and rotational work create challenges for family stability. Many families thrive; others find the isolation and darkness difficult.