Alaska
Should You Retire in Alaska?
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.
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.
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.
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.
View the “Social Security secrets” ›
The Motley Fool has a disclosure policy.
Alaska
Trump Repeals Biden Land Protections in Alaska, Other States
Alaska
Alaska Hosts US Bomber Exercise Against ‘Threats to the Homeland’
The United States deployed two bombers to simulate strikes against “maritime threats” to the homeland in response to a growing Russian and Chinese presence near Alaska.
Newsweek has contacted China’s Foreign Ministry for comment by email. Russia’s defense and foreign ministries did not immediately respond to a request for comment.
Why It Matters
Russia and China have closely cooperated in military matters under their “partnership without limits,” including a joint naval maneuver in the north Pacific near Alaska’s Aleutian Islands involving 11 Russian and Chinese vessels in summer 2023.
Facing a growing Moscow-Beijing military partnership, along with increased Chinese activities in the Arctic, the U.S. has been reinforcing its military presence in Alaska by deploying warships and conducting war games with its northern neighbor, Canada.
Bombers, capable of flying long distances and carrying large amounts of armaments, are a key instrument for the U.S. military to signal its strength. The American bomber force has recently conducted operations as a show of force aimed at Russia and China.
What To Know
According to a news release, the Alaskan Command executed simulated joint maritime strikes with Air Force B-52H bombers and the Coast Guard national security cutter USCGC Kimball in the Gulf of Alaska on Tuesday as part of Operation Tundra Merlin.
The bombers are assigned to the 2nd Bomb Wing out of Barksdale Air Force Base in Louisiana, while the Kimball is homeported in Honolulu. The 354th Fighter Wing at Eielson Air Force Base in Alaska also deployed four F-35A stealth fighters.
Other supporting units included two KC-135 aerial refueling aircraft and an HC-130 aircraft on standby to conduct personnel recovery missions, the news release said.
During the operation, the bombers received target information from the Kimball for standoff target acquisition and simulated weapons use, while the F-35A jets—tasked with escorting the bombers—enhanced mission security and operational effectiveness.
According to an Air Force fact sheet, each B-52H bomber has a maximum payload of 70,000 pounds and is capable of carrying up to 20 standoff weapons—designed to be fired from outside enemy defenses—such as the Joint Air-to-Surface Standoff Missile.
The simulated strikes “demonstrated the capability of the [U.S. Northern Command] and its mission partners to deter maritime threats to the homeland,” the news release said.
Homeland defense is the Alaskan Command’s top priority, said its commander, U.S. Air Force Lieutenant General Robert Davis, adding that the ability to integrate with other commands and partners is key to safeguarding the U.S. northern approaches.

What People Are Saying
U.S. Air Force Lieutenant General Robert Davis, the commander of the Alaskan Command, said: “Operations in the Alaskan Theater of Operations are critically important to North American Homeland Defense. Operation Tundra Merlin demonstrates the Joint Force’s ability to seamlessly integrate capabilities from multiple combatant commands and mission partners to deter and defeat potential threats in the region.”
The Alaskan Command said: “Operation Tundra Merlin is a Homeland Defense focused joint operation designed to ensure the defense of U.S. territory and waters within the Alaskan Theater of Operations (AKTO). The operation includes integration with partners in the region with the shared goal of North American defense in the Western Arctic.”
What Happens Next
It remains to be seen whether Russia and China will conduct another joint air patrol near Alaska following a similar operation over the western Pacific earlier this week.
Alaska
Dunleavy says he plans to roll out fiscal plan ahead of Alaska lawmakers’ return to Juneau
Gov. Mike Dunleavy says he will roll out a new plan to stabilize Alaska’s tumultuous state finances in the coming weeks ahead of next month’s legislative session. The upcoming session provides Dunleavy his last chance to address an issue that has vexed his seven years in office.
“(The) next three, four, five years are going to be tough,” Dunleavy told reporters Tuesday ahead of his annual holiday open house. “We’re going to have to make some tough decisions, and that’s why we will roll out, in a fiscal plan, solutions for the next five years.”
The state’s fiscal issues are structural. Since oil prices collapsed in the mid-2010s, Alaska has spent more money than it has taken in despite years of aggressive cost-cutting and a 2018 move to tap Permanent Fund earnings to fund state services.
Dunleavy said a boom in oil and gas drilling and growing interest in a natural gas pipeline from the North Slope to an export terminal will likely ease the fiscal pressure in the coming years. He said his plan would serve as a bridge.
“I think the next five years, we’re going to have to be real careful, and we’re going to have to have in place things that will pay for government,” he said.
Dunleavy, a Republican, declined to reveal even the broad strokes of his plan, saying he plans to hold news conferences in the coming weeks to discuss it.
Prior efforts by Dunleavy and the Legislature to come to an agreement on a long-term fiscal plan have failed.
Dunleavy’s early plans for deep cuts led to an effort to recall him. He has also backed attempts to cap state spending and constitutionalize the Permanent Fund dividend.
A prior Dunleavy revenue commissioner floated a few tax proposals during talks with a legislative committee in 2021, but Dunleavy has since distanced himself from those ideas. Alaska is the only state with no state-level sales or income tax, and asked directly whether his plan would include a sales tax, he declined to say.
“You’re just going to have to just wait a couple more weeks, and we’ll have that entire fiscal plan laid out, so you guys can take a look at it, and the people of Alaska can take a look at it,” he said.
In recent years, Dunleavy has proposed budgets with large deficits that require spending from savings. His most recent budget would have drained about half of the savings in the state’s $3 billion rainy-day fund, the Constitutional Budget Reserve, or CBR.
Still, Dunleavy says he wants to find a sustainable fiscal path forward for the state.
“We are determined to help solve this longstanding issue of, how do you deal with balancing the budget, and not just on the backs of the PFD or the CBR — what other methods are we going to employ to be able to do that?” he said.
Whether lawmakers will be receptive is an open question. Democrat-heavy bipartisan coalitions control both the state House and Senate, and even some minority Republicans crossed over to override Dunleavy’s vetoes repeatedly this year.
Dunleavy’s budget proposal is likely to offer some clues about the governor’s fiscal plan. He has until Dec. 15 to unveil it.
-
Alaska6 days agoHowling Mat-Su winds leave thousands without power
-
Politics1 week agoTrump rips Somali community as federal agents reportedly eye Minnesota enforcement sweep
-
Ohio1 week ago
Who do the Ohio State Buckeyes hire as the next offensive coordinator?
-
Texas6 days agoTexas Tech football vs BYU live updates, start time, TV channel for Big 12 title
-
News1 week agoTrump threatens strikes on any country he claims makes drugs for US
-
World1 week agoHonduras election council member accuses colleague of ‘intimidation’
-
Washington3 days agoLIVE UPDATES: Mudslide, road closures across Western Washington
-
Iowa5 days agoMatt Campbell reportedly bringing longtime Iowa State staffer to Penn State as 1st hire