If you want to minimize taxes in retirement, Alaska may be on your radar. It has the lowest tax burden of any U.S. state.
Residents also get a cut of the state’s oil wealth, courtesy of annual dividends from the Alaska Permanent Fund, which often exceeds $1,000. But if you’re nearing retirement age, don’t start packing your bags for America’s Last Frontier just yet.
An RV travels against the backdrop of mountains.
Image source: Getty Images.
The cost of retiring in Alaska
In addition to stunning scenery, Alaska boasts breathtakingly low tax rates. The total tax burden is just 4.9% when you account for all the taxes the state levies. There’s no state personal income tax, so you don’t have to worry about part of your retirement distributions or Social Security check going into state coffers.
Advertisement
There’s also no state sales tax and a flat property tax rate of just 1.07% of an owner-occupied home’s value. And Alaska hasn’t experienced the dramatic spike in home prices that’s occurred in much of the U.S. since 2020.
But out of the 50 states and Washington, D.C., Alaska has the fifth-highest cost of living. It’s topped only by Hawaii, California, the District of Columbia, and Massachusetts.
Life in Alaska is about 25.1% more expensive than the U.S. average, according to the Council for Community & Economic Research (C2ER) survey. Some costs that are significantly higher than average in Alaska:
The high cost of living may be part of the reason why people 65 and up account for just 13.1% of Alaska’s population. Only Utah has a smaller share of retirees.
Quality-of-life considerations
Money isn’t the only factor to weigh in choosing a retirement destination. Climate, recreation, transportation, and proximity to loved ones are other considerations.
Advertisement
You may find aging in place difficult, given the relative isolation, or find yourself spending more money on travel when you visit loved ones. If you’re thinking about retiring to Alaska, consider renting for a year or two first to see if you’re well-suited to the Last Frontier.
The $22,924 Social Security bonus most retirees completely overlook
If you’re like most Americans, you’re a few years (or more) behind on your retirement savings. But a handful of little-known “Social Security secrets” could help ensure a boost in your retirement income. For example: one easy trick could pay you as much as $22,924 more… each year! Once you learn how to maximize your Social Security benefits, we think you could retire confidently with the peace of mind we’re all after. Simply click here to discover how to learn more about these strategies.
ANCHORAGE, Alaska (KTUU) – The U.S. Coast Guard is considering homeporting up to four additional icebreakers in Alaska as part of a major expansion of its Arctic presence, Coast Guard Commandant Adm. Kevin Lunday told lawmakers during a U.S. Senate hearing Thursday.
Lunday made the comments while testifying before the Senate Commerce Subcommittee on Coast Guard, Maritime, and Fisheries, chaired by Sen. Dan Sullivan, R-Alaska, who has pushed for increased federal investment in Arctic security and maritime infrastructure.
“One of the first ones that I want them to present, among a range of options for consideration [and] decision, [to] me in consultation with Secretary Noem is for homeporting up to four icebreakers in Alaska,” Lunday said, adding that the Coast Guard is developing options for consideration as part of its long-term planning.
The potential expansion would draw from a fleet of 11 Arctic Security Cutters announced under the U.S.-Finland Icebreaker Agreement and the ICE Pact, and international framework aimed at strengthening icebreaking capacity among allied nations.
Advertisement
Funding for at least three Arctic Security Cutters, along with the infrastructure to support them, was approved through the Working Families Tax Cut Act, a sweeping budget reconciliation measure that includes roughly $25 billion for Coast Guard modernization, the largest investment in the service’s history.
The funding package also includes money for the new cutters, aircraft and helicopters, as well as billions of dollars to repair and replace aging shore facilities nationwide.
Sullivan said the investments are critical as the Coast Guard faces growing demands across multiple regions while operating an aging fleet.
“The Coast Guard is being asked to do more across every theater,” Sullivan said, pointing to counter-drug operations enforcement against sanctioned vessels, Indo-Pacific missions, search-and-rescue operations, and efforts to combat illegal, unreported and unregulated fishing.
The Coast Guard currently operates a limited number of icebreakers, one of which has experienced prolonged mechanical issues. Sullivan cited a growing capability gap with other Arctic nations, including Russia, which operates dozens of ice-capable vessels.
Advertisement
In addition to potential new icebreakers, Alaska is set to receive a range of Coast Guard assets and infrastructure upgrades, including funding for cutters, helicopters, aircraft, housing and shore facilities. A new Coast Guard pier in Juneau is already under development to support expanded Arctic and Pacific operations, and the polar icebreaker Storis is expected to homeport there.
Lunday voiced support for expanding Alaska’s shipbuilding and maintenance capabilities, particularly in Southeast and Southcentral Alaska, saying partnerships with private industry could improve efficiency and readiness.
The Coast Guard’s expanded presence is intended to strengthen maritime safety, national security, maritime safety and environmental response capabilities across Alaska’s vast coastline, according to Sullivan.
No final decision has been made of the homeporting of additional icebreakers, but Lunday said Alaska is under active consideration as the Coast Guard evaluated its future Arctic posture and presence.
See a spelling or grammar error? Report it to web@ktuu.com
A federal judge has allowed ConocoPhillips to proceed with its winter exploration program in Alaska’s North Slope, over the objections of environmental and Indigenous groups.
On Tuesday, Chief Judge Sharon Gleason of the U.S. District Court for the District of Alaska said mitigation measures put in place by the Interior Department’s Bureau of Land Management were sufficient to address potential harms from the oil company’s exploration and seismic program in the National Petroleum Reserve-Alaska (NPR-A).
Gleason, an Obama appointee, found that BLM had done a “reasonably thorough analysis” of effects from the program, which includes four exploration wells and a seismic survey over 300 miles in the reserve.
Advertisement
She noted that the agency included measures such as prohibiting off-road travel when the soil isn’t sufficiently frozen and when there is less than 6 inches of snow. ConocoPhillips is also prohibited from bulldozing tundra mat and vegetation to make seismic lines.
A 35-second shot clock has been instituted at Alask’a 4A level for 2025-26 season. Many coaches believe it’s a positive move to increase pace of play and keep up with trends nationally. (Photo by Stephanie Burgoon)
After years of speculation and experimentation, the shot clock has officially become woven into the fabric of 4A basketball in Alaska, the highest level of high school competition.
Most teams got their first taste of what it’s like to play with a 35-second limit to get the ball to the rim during in-season tournaments in and out of the state over the past few years. Now it’s here to stay.
All boys and girls varsity games between 4A teams are required to use the shot clock, and coaches of some of the top teams in the state believe it’s long overdue.
“The shot clock has been good for us,” said Thomas Berg, head coach of the reigning 4A state champion Colony girls team. “I think there’s another layer of coaching that goes into the shot clock.”
Advertisement
He specifically cited late-clock defense and offense as the two biggest challenges that require strategic adjustments.
“I’ve been a big fan of that this year,” Berg said. “That’s been fun for us. It doesn’t come up a lot. Most teams play fast enough, but down the stretch in quarters and in games, I think it’s a fun part that adds to the excitement of the basketball game.”
In his eyes, there was a lot of holding and moving the ball without any real offensive attempts at the prep basketball level for years. Berg said now in late-game situations, coaches don’t have to instruct their players to intentionally foul as often.
“If you get a stop and then stack those stops, you got a chance,” he said.
Although the idea of a shot clock has been considered in Alaska basketball circles for years, the Alaska School Activities Association officially instituted the shot clock rule at its Board of Directors meeting in December 2024. The motion passed in a 5-3 vote.
Advertisement
Teams at the 1A, 2A and 3A levels are not required to use a shot clock but can utilize it in tournaments during the regular season or if both schools provide written consent to officials before a non-tournament game.
Chuck Martin is the head coach of the Bettye Davis East Anchorage boys team, the three-time defending 4A state champion, and has been a pillar in the Alaska high school basketball scene for decades. He has long been a proponent of the shot clock and is glad that it’s finally being implemented.
“Even though it’s new, it’s not hard for us to get used to it,” Martin said.
Some of his assistant coaches are still adjusting to it from a strategic standpoint during games, with one example being telling players to hold the ball for longer than the shot clock permits in the final minute of quarters.
“You can’t say ‘one shot’ with 41 seconds left, there’s a (35-second) shot clock,” Martin said. “I tell the players to go play.”
Advertisement
Forest Wildcats senior forward Trey Chisolm from Ocala, Florida drives to the basket during a 56-38 victory over the West Valley Wolfpack in the opening round of the Alaska Airlines Classic at West Anchorage High School on Thursday, Jan. 22, 2026. (Bill Roth / ADN)
Unlike some of his coaching contemporaries around the state, he has extensive experience with the shot clock during other stretches of his career in different states and levels of competition.
In practice, his staff coaches situational basketball often, so this adaptation is just another wrinkle they have to review.
“The reality is the shot clock doesn’t really come into effect until later in the game,” Martin said.
So far this season, his team has done a good job of getting the ball out before the buzzer sounds, and their late-game operation when games are tight has just become an area of more focus.
He tells his players that the clock is irrelevant most of the time and that they’re going to run what they want to run because a shot-clock violation is not as detrimental of a penalty as others can be at times.
“It’s a dead-ball violation,” Martin said. “It’s better than throwing the ball to them and letting them make a layup, so we don’t sweat it. Our philosophy is that we’re not going to pay attention to the clock because we’re trying to score.”
Advertisement
This year’s edition of the East boys team doesn’t have the post presence it has had in recent seasons. The Thunderbirds are relying more on speed and efficient shooting, so in Martin’s mind, the last thing they have to worry about is the shot clock.
“We’re going to shoot the 3 and we’re going to play the full court and we’re going to take the first shot we get,” he said. “The last couple years when we haven’t been a great shooting team … With this group, you got to let them shoot because that’s probably the best shot we’re going to get (at winning).”
Outsider’s perspective
During last week’s Alaska Airlines Classic tournament at West Anchorage High School, head coaches of two of three boys teams from out of state that participated shared their thoughts on playing with a shot clock.
For Shelby Lewis and his Central High School team from Little Rock, Arkansas, it was “nothing new” and business as usual.
“We’ve been doing the shot clock for the last six years,” he said.
Advertisement
That wasn’t the case for Forest High School head coach Michael Hoffmann and his Wildcats from Ocala, Florida, who won the tournament.
Florida is one of the 18 states that does not mandate the use of a shot clock at the high school level. That won’t be the case for much longer, though, as it’s slated to join the other 32 states and the District of Columbia starting in the 2026-27 season.
“We love the shot clock,” Hoffmann said. “We’ve done it before because we travel a lot or try to.”
His team competed in a tournament in Tennessee last year that utilized the shot clock, and they experienced it on a couple different occasions this season prior to coming to Alaska.
“We want it because we’re a little bit of a quicker team and we’re hoping it gets installed next year,” Hoffmann said.