The $100,000 Salary Analysis for Fairbanks

This guide assumes a gross annual salary of $100,000 and calculates the realistic take-home pay and budget for Fairbanks, Alaska. We focus on net purchasing power, not nominal gross figures.

1. The Verification Test

A $100,000 salary is not what lands in your bank account. Here is the math for a single filer (assuming standard deduction and no 401k contribution for baseline clarity).

• Federal Tax (Est.): ~$14,100
  • Note: This includes the standard deduction.
• FICA (Social Security & Medicare): $7,650
• Alaska State Tax: $0
  • Context: Alaska is one of nine states with no personal income tax.

Annual Net Pay: $78,250
Monthly Net Pay: $6,520

2. Smart Budget (50/30/20 Rule)

Using the $6,520 monthly net pay.

50% Needs ($3,260)

• Rent (1BR): $1,253
  • Note: Fairbanks rent is lower than Anchorage, but utility costs are significantly higher due to heating.
• Utilities (Heat/Electric): $300 - $400 (Estimated winter average)
• Groceries: $500
• Transportation: $400 (Gas/Insurance; vehicle maintenance is critical here)

30% Wants ($1,956)

• This bucket covers dining out, entertainment, hobbies, and travel. In Fairbanks, this may be impacted by limited seasonal activities (e.g., winter isolation vs. summer festivals).

20% Savings ($1,304)

• This is your emergency fund or investment contribution. Note that $1,304 is a modest amount for a six-figure earner.

3. Fairbanks Tax Context

Alaska offers a unique tax environment compared to the rest of the US.

• Vs. High-Tax (California/NY): You keep roughly $20,000+ more per year than you would in CA/NY on the same salary.
• Vs. Low-Tax (Texas/Florida): You are roughly equal on income tax, but Alaska often offsets this with higher costs for goods (shipping) and services.
• The "Permanent Fund Dividend" (PFD): Residents may receive an annual dividend (historically $1,000 - $2,000, though variable). This is a small offset to the high cost of living, not a wealth builder.

4. FAQ

"Is $100k good here?"
It is a "comfortable" salary, but not "wealthy." You will have no trouble covering rent and basic needs. However, the high cost of groceries, fuel, and heating (AC is rarely needed, heating is constant) eats into the "no state tax" advantage. You will feel middle-class, not upper-class.

"Local income tax?"
No. There are no local income taxes in Fairbanks or Anchorage.

"What about sales tax?"
Fairbanks (North Star Borough) has no sales tax. However, some specific jurisdictions in Alaska do, so verify where you shop.