Overall 12%
Goods & Services 6%
Housing 3%
Date & Last Updated: This data reflects 2019 and was released from C2ER in January, 2020; this is the most current data available.
The cost of living index is based on a national average of 100. For example, if the cost of living is 90, then it is 10% lower than average. If the cost of living is 110, then it is 10% higher than average. The breakdown for each index is as follows: goods & services (33%), groceries (13%), health care (5%), housing (30%), transportation (9%) and utilities (10%). If the cost of living data was unavailable for this city, estimates based upon nearby cities were used.
Cost of living112128100
Goods & Services106112100
Health care142147100

Key findings

  • The cost of living in Palmer is 12% lower than the Alaska average
  • The cost of living in Palmer is 12% higher than the national average
  • Palmer housing is 3% higher than the national average
  • Alaska general sales tax is 100% lower than the national average
  • Alaska state income tax is 100% lower than the national average

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Compare Palmer, AK Cost of Living

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      Price difference in compared to
      Cost of living index
      Goods & Services index
      Groceries index
      Health care index
      Housing index
      Transportation index
      Utilities index

      Median Income & Debt-To-Income Ratio

      Median IncomePer YearPer MonthMax Budget (28% DTI)Max Budget (36% DTI)
      The affordability of the housing market in Palmer, AK as well as the overall cost of living can be predicted by what percent of the monthly income is spent on housing related costs. This is konwn as the debt-to-income ratio (DTI). The overall rule of thumb is that no more than 28% of your gross income should be spent on the overall costs related to housing and no more than 36% of gross income on all expenses and debts. Among Palmer homeowners, the median income is $76,307. This indicates that a monthly maximum of $1,780 should be spent by homeowners on all housing related costs. Renters have a median income of $34,757. This indicates that renters would have a maximum of $811 for their rent related monthly costs.

      Alaska Sales Tax

      StateGeneral Sales TaxWith Max Surtax

      Alaska Income Tax

      StateIncome Tax (Low)Income Tax (High)

      Goods & Services

      ItemPalmerNational avg.Difference
      Haircut $20.00$17.4914.4%
      Beauty Salon $46.00$38.1720.5%
      Toothpaste $3.10$2.3233.6%
      Shampoo $1.12$1.0110.7%
      Movie $12.18$10.7213.6%
      Bowling $18.50$13.8633.5%


      ItemPalmerNational avg.Difference
      Ground Beef $4.74$3.9021.5%
      Fried Chicken $1.68$1.4020.4%
      Milk $2.54$1.9629.4%
      Potatoes $4.11$3.1829.1%
      Pizza $8.49$10.3918.3%
      Beer $9.99$9.238.2%

      Health Care

      ItemPalmerNational avg.Difference
      Optometrist $213.85$106.34101.1%
      Doctor $181.67$115.2557.6%
      Dentist $140.50$98.3842.8%
      Ibuprofen $9.35$9.261.0%
      Lipitor $561.49$466.4720.4%


      ItemPalmerNational avg.Difference
      Home Price $194,100.00$184,700.005.1%
      Avg. Mortgage Payment $2,022.15$1,273.3258.8%
      Apartment Rent $943.00$949.000.6%


      ItemPalmerNational avg.Difference
      Gasoline $2.98$2.5914.9%
      Tire Balancing $56.00$48.9014.5%


      ItemPalmerNational avg.Difference
      All Electricity$243.53$167.6045.3%
      Phone $181.41$163.4211.0%
      Although the cost of living data is updated regularly, this cost of living information is to be used as estimates only as prices can change on an ongoing basis.

      Nearby cities with low cost of living

      City, StatePopulationCost of Living IndexNational Avg.
      Sutton-Alpine, AK1,5641088%
      Buffalo Soapstone, AK83611111%
      Knik River, AK75711414%
      Meadow Lakes, AK7,69411616%
      Wasilla, AK8,97211717%
      Palmer, AK6,57211212%

      Cities with similar population

      City, StatePopulationCost of Living IndexNational Avg.
      Hillsboro, OH6,57286-14%
      Ben Lomond, CA6,57316666%
      Carbondale, CO6,57113737%
      Viola, NY6,57515252%
      Medfield, MA6,57515757%
      Palmer, AK6,57211212%
      Source: The Palmer, AK cost of living data displayed above is derived from the Council for Community and Economic Research (C2ER) for 2019.