The unemployment rate in Palmer, AK, is 6.30%, with job growth of 4.32%. Future job growth over the next ten years is predicted to be 47.10%. Palmer, AK, sales tax rate is 3.00%. Income tax is 0.00%. The income per capita is $18,609, which includes all adults and children. The median household income is $48,817.

Many residents commute to Anchorage for employment. Palmer’s economy is based on a diversity of retail and other services, City, Borough, State and federal government. Some light manufacturing occurs. 73 area residents hold commercial fishing permits.

Palmer is home to 200 musk ox whose under wool is knitted into garments by Alaska Native women from several rural villages. Between 2,500 and 3,500 garments are created each year by these women, and sold by an Anchorage cooperative.

The 75-acre musk ox farm is also a tourist attraction. The University has an Agricultural and Forestry Experiment Station Office and a district Cooperative Extension Service office here. The University’s Matanuska Research Farm is also located in Palmer.