As of the census of 2000, there were 1,088 people, 482 households, and 270 families residing in the village. The population density was 1,473.9 people per square mile. There were 624 housing units at an average density of 845.3 per square mile. The racial makeup of the village was 99.08% White, 0.37% Hispanic or Latino of any race, 0.09% African American, 0.09% Native American, and 0.74% from two or more races. There were 482 households, out of which 24.7% had children under the age of 18 living with them, 38.4% were married couples living together, 14.9% had a female householder with no husband present, and 43.8% were non-families. 38.6% of all households were made up of individuals, and 15.8% had someone living alone who was 65 years of age or older. The average household size was 2.12 and the average family size was 2.81. In the village, the population was spread out, with 20.3% under the age of 18, 5.3% from 18 to 24, 27.7% from 25 to 44, 23.4% from 45 to 64, and 23.3% who were 65 years of age or older. The median age was 43 years. For every 100 females, there were 80.7 males. For every 100 females age 18 and over, there were 79.9 males. The median income for a household in the village was $29,338, and the median income for a family was $36,979. Males had a median income of $31,250 versus $21,429 for females. The per capita income for the village was $16,875. About 11.0% of families and 13.5% of the population were below the poverty line, including 16.3% of those under age 18 and 18.7% of those age 65 or over. According to the 2008-2012 American Community Survey, the total population of Alexandria Bay was 1,999 and 95.5% white. 12.6% of the population over 25 does not have a high school or equivalent degree. Median household income, in 2012 inflation adjusted dollars, was $37,303.
Local attractions
While Alexandria Bay has a relatively low population during the winter months and has no colleges, the late spring, summer, and early fall seasons bring an influx of vacationers and avid boaters that cause the population of the village to exceed 15,000. Several motels and hotels are available in the immediate village area. Boat tours are available of the bay and river area daily. Boldt Castle is a 120-room mansion on Heart Island, located near Alexandria Bay. The castle was designed by the firm of W. D. Hewitt and G.W. Hewitt, Architects of Philadelphia, who also designed Druim Moir Castle in Philadelphia. Boldt Castle was built at the turn of the century by multi-millionaire George C. Boldt for his wife, Louise, as a testimony of his love for her. Mr. Boldt invested over $2.5 million to build this replica of a Rhineland castle. Boldt planned on presenting it to his wife on Valentine's Day. Work was underway on the eleven buildings that would comprise the castle complex when in January 1904 Louise Boldt died, ending the dreams of a lifetime. George Boldt ordered that all work be stopped and for 73 years the Castle and the other structures on the island were left to the forces of nature. The Thousand Islands Bridge Authority acquired the property in 1977; since that time, several million dollars have been spent rehabilitating and restoring the castle and surrounding structures. Ferries allow access to the castle on an hourly schedule daily. Every August, 10 days are devoted to "Bill Johnston's Pirate Days", a town-wide festival that features professional performers acting out pirate battles and a "siege" of the town by the "Pirate of the Thousand Islands", Bill Johnston, whom the festival is named after. It is encouraged that attendees dress in pirate attire, as do the actors who line the streets. The festival is also educational, with many groups providing galleries, displays, and informative presentations of the weapons and ships used during the Golden Age of Piracy.
Airport
Maxson Airfield is a privately owned, private-use general aviation airport located south of the central business district of Alexandria Bay. It once had commercial service provided by Mohawk Airlines. At that time, the airport bore the IATA airport code AXB.