Compare taxes and see how much you save moving from Alaska to Florida
Alaska and Florida represent the extremes of America's no-income-tax states. Alaska goes further than any other state: no state income tax, no state sales tax, AND the Permanent Fund Dividend (PFD) — an annual payment to every Alaska resident of approximately $1,300–2,000 from the state's oil revenues. Alaska actually pays you to live there. Florida offers zero income tax, 6% state sales tax, and warm-weather beaches. On pure tax burden, Alaska wins: no sales tax saves approximately $2,800/year on typical spending vs Florida, and the PFD adds another $1,300–2,000+ annually. However, Alaska's extraordinary cost of living (groceries, goods, and services cost 15–30% more than the continental US), extreme climate, and geographic isolation create real costs that offset the tax advantage. Florida's hurricane insurance crisis ($4,000–8,000+/year) is a significant hidden cost for homeowners. For tax-efficiency seekers, Alaska represents the mathematical winner — but almost nobody moves to Alaska purely for taxes.
No Income Tax
No state sales tax; Permanent Fund Dividend ~$1,300–2,000/yr per resident; property tax ~1.04%
No Income Tax
6% state sales tax; property tax ~0.89%; hurricane insurance crisis
At $100,000 income:
That is $333/month back in your pocket!
| Income | AK Tax | FL Tax | Savings | 10-Year |
|---|---|---|---|---|
| $50,000 | $0 income tax; ~$520 property (low local areas); $0 state sales; PFD +$1,600 = net ~-$1,080 (AK pays you) | $0 income tax; ~$1,100 property; ~$875 sales = ~$1,975 total (+ insurance) | AK saves ~$3,000 on taxes + PFD vs FL homeowner | $30,000 |
| $75,000 | $0 income tax; ~$2,080 property (median $200K × 1.04%); $0 state sales; PFD +$1,600 = net ~$480 | $0 income tax; ~$1,400 property; ~$1,300 sales = ~$2,700 total (+ insurance) | AK saves ~$2,220 on taxes + PFD vs FL (renters); FL wins for renters on pure living costs | $22,200 |
| $100,000 | $0 income tax; ~$3,120 property (median $300K × 1.04%); $0 state sales; PFD +$1,600 = net ~$1,520 | $0 income tax; ~$2,350 property; ~$1,750 sales = ~$4,100 total (+ $4K+ insurance) | AK saves ~$2,580 on taxes + PFD; ~$6,500+ factoring FL insurance | $40,000 |
| $150,000 | $0 income tax; ~$4,160 property ($400K × 1.04%); $0 state sales; PFD +$1,600 = net ~$2,560 | $0 income tax; ~$2,900 property; ~$2,600 sales = ~$5,500 total (+ insurance) | AK saves ~$2,940 on taxes + PFD; significantly more factoring insurance | $35,000 |
| $200,000 | $0 income tax; ~$5,200 property ($500K × 1.04%); $0 state sales; PFD +$1,600 = net ~$3,600 | $0 income tax; ~$3,900 property; ~$3,500 sales = ~$7,400 total (+ insurance) | AK saves ~$3,800 on taxes + PFD vs FL homeowner (insurance included) | $45,000 |
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Moving to Alaska or Florida? Domicile changes, PFD qualification, partial-year returns, and multi-state filing are surprisingly complex. Get matched with a CPA who specialises in state moves. Virtual meetings, fixed pricing.
Get Matched With a CPA →The Alaska Permanent Fund Dividend (PFD) is an annual payment to Alaska residents from investment earnings of the Alaska Permanent Fund, which holds the state's accumulated oil revenues. The PFD amount varies year to year based on the Fund's earnings and the legislative formula: in 2022 it was $3,284 (a one-time high including energy relief); 2023 was $1,312; 2024 was approximately $1,702. A family of four receives four separate PFDs — at $1,600 each, that is $6,400 total. To qualify: must have been a state resident for the entire prior calendar year, intend to remain an Alaska resident indefinitely, and not have been convicted of a felony in certain categories.
For most people, no. While Alaska's tax burden is mathematically lower (no income tax, no state sales tax, plus the PFD), the cost of living premium largely or fully offsets this. Groceries in Anchorage are approximately 15–25% more expensive than the US average; in smaller communities, premiums of 50–100% are common. Heating costs ($3,000–8,000+/year), higher transportation costs, and expensive flights to the continental US add up quickly. Florida's sales tax and insurance costs are real disadvantages, but Florida's overall cost of living (outside Miami) is closer to national averages. For a $100,000-income household: Alaska's total tax advantage (including PFD) is approximately $3,000–5,000/year vs Florida, but cost of living premiums typically exceed this.
Yes — and Alaska has a growing remote worker community. Anchorage has reliable high-speed internet and all urban amenities. The challenge is geographic: time zone (Alaska Standard Time is 4 hours behind EST), limited direct flights to major continental cities, and the psychological adjustment to Alaska's extreme seasonal light variation (near-24-hour darkness in winter; near-24-hour daylight in summer). Smaller communities have limited or satellite internet. For remote workers who value outdoor recreation and can manage the isolation, Alaska offers a unique lifestyle — and the PFD, zero income tax, and zero state sales tax create a real financial advantage over time.
Both are excellent. Florida: zero income tax, zero estate tax, $50,000 homestead exemption, Save Our Homes cap, warm climate, beaches, world-class retirement communities, and strong healthcare infrastructure. Alaska: zero income tax, the PFD (annual dividend income for each family member), municipal senior property tax exemptions, zero state sales tax — but harsh climate, geographic isolation, and limited healthcare specialist access in most areas. For most retirees seeking warmth, healthcare access, and community: Florida is superior. For active retirees who love outdoors, fishing, and don't mind cold winters: Alaska's tax advantages plus the PFD are compelling.
Federal income taxes are unaffected by state of residence — you pay the same federal rates regardless of whether you live in Alaska, Florida, or California. The benefit of Alaska or Florida is entirely at the state level. For federal taxes: standard deductions, marginal rates, and all federal rules apply equally. One nuance: in high-tax states, state income taxes are deductible on Schedule A (subject to the $10,000 SALT cap) — moving to Alaska or Florida means you lose this deduction but also lose the underlying tax payment. The net result is you're still better off in a no-tax state even accounting for the lost SALT deduction, because paying $0 in state tax is better than paying $8,000 and deducting some of it.