Alaska’s Permanent Fund Dividend is one of the reasons people want to move there. But is it worth it is the real question. Let’s go over costs of living in Alaska and salaries people can get there to see the full picture.
The Alaska Permanent Fund Dividend Explained
The PFD started in 1982. It gives Alaska residents a share of the state’s oil money every year. The Alaska Permanent Fund is like a savings account built from oil revenues. Each year some of the money it earns goes to residents.
In 2024 the PFD was $1,702 per person. This included a dividend of $1,403.83 and a special energy relief payment of $298.17. For 2025 the dividend is $1,000. The amount changes every year based on how money the fund earns and how the Legislature decides to distribute it.
For a family of four this could mean getting around $4,000 to $6,800 in a year. That’s money. It’s not a job salary and shouldn’t be thought of that way. The Permanent Fund Dividend is its thing and the money from it can be a nice bonus.
A Plus Moving services will help you make your move smooth. Our team will take care of moving your belongings and free your mind for more important details of the move. Call us today at (800) 919-6332!
Who Qualifies and How to Apply
The PFD is not hard to get, but it’s also not like they are giving it away to anyone who visits Alaska. Check these rules:
- You must live in Alaska for the last year
- You have to want to stay in Alaska
- You cannot be in jail. Have been found guilty of certain crimes during that year
- You have to send in your application from January 1 to March 31 of the year, you want to get the Permanent Fund Dividend
You send in your application on the state’s MyPFD website. If you miss the deadline you will not get the Permanent Fund Dividend for that year. There are no chances to get the Permanent Fund Dividend.
What the Permanent Fund Dividend Does Not Cover
Extra cash always sounds great. But when you see the full picture of average spendings in Alaska, it becomes clear – the PFD isn’t much.
Groceries cost 27% more in Alaska. Utilities, like heating, cost 57% more in Alaska because the winters are very cold. Healthcare costs 42% more in big cities like Anchorage.
WARNING
The average person in Alaska spends $62,900 per year, around $50K from this sum is for basic things like food and a house.
So the Permanent Fund Dividend of $1,000 to $1,700, per year is not a lot of money compared to how much things cost in Alaska. The Permanent Fund Dividend only covers a part of the extra cost of living in Alaska.
The Real Financial Picture of Moving to Alaska
Alaska does not have a state income tax. It does not have a state sales tax. This is a deal. For people who earn a lot of money, they can save a lot of money on taxes over time.
Most of the jobs in Alaska are in areas like oil and gas fishing, healthcare, the military and the government. Some jobs in areas pay more money to get people to move there. But the high cost of living in Alaska, especially outside of Anchorage, takes away some of the extra money people earn.
Moving to Alaska also costs a lot of money to relocate. People often do not think about how much it costs. If you are moving from one of the 48 states it is a very long way. Shipping your things by boat or truck takes a lot of time and money.
