Cost of Living in Alabama
Alabama has 24 cities with cost-of-living data on CompareLiving, drawn from US Census, BEA, HUD, and EPA sources. Prices range from Huntsville (cost index 88.3) to Hoover (91.0), with a statewide average around 90.1 versus the US baseline of 100. Median rent is lowest in Florence at $784/mo and highest in Homewood at $1,457/mo.
Alabama at a Glance
Cities Tracked
24
with census data
Avg Cost Index
90.1
US avg = 100
Avg Median Rent
$1,098
per month
Avg Household Income
$72,568
annual median
Most & Least Affordable Cities
Most Affordable
| City | Cost Index | Median Rent |
|---|---|---|
| Huntsville | 88.3 | $1,078 |
| Birmingham | 91.0 | $1,047 |
| Hoover | 91.0 | $1,404 |
Most Expensive
| City | Cost Index | Median Rent |
|---|---|---|
| Birmingham | 91.0 | $1,047 |
| Hoover | 91.0 | $1,404 |
| Huntsville | 88.3 | $1,078 |
Cost Index = BEA Regional Price Parity (US avg = 100)
Taxes in Alabama
State Income Tax
5.00%
Top marginal rate · Tax Foundation 2024
State Sales Tax
4.00%
Statewide base rate · local add-ons may apply
Popular Cities in Alabama
Alabama Cities — Full Table
Click columns to sort
| Huntsville | 218,814 | 88.3 | $1,078 | $263,100 | $70,778 |
| Birmingham | 199,322 | 91.0 | $1,047 | $138,600 | $44,376 |
| Montgomery | 198,440 | — | $1,059 | $148,500 | $55,687 |
| Mobile | 185,097 | — | $1,029 | $170,300 | $51,090 |
| Tuscaloosa | 107,699 | — | $1,005 | $236,600 | $48,536 |
| Hoover | 92,401 | 91.0 | $1,404 | $391,300 | $107,822 |
| Auburn | 78,738 | — | $1,034 | $342,400 | $56,123 |
| Dothan | 71,118 | — | $912 | $186,600 | $55,052 |
| Madison | 58,335 | — | $1,375 | $367,900 | $131,436 |
| Decatur | 57,760 | — | $861 | $190,500 | $59,831 |
| Florence | 41,231 | — | $784 | $174,100 | $50,396 |
| Prattville | 38,850 | — | $1,250 | $208,500 | $79,396 |
| Vestavia Hills | 38,704 | — | $1,455 | $494,500 | $129,171 |
| Phenix City | 38,477 | — | $926 | $160,000 | $49,715 |
| Alabaster | 33,633 | — | $1,375 | $242,600 | $90,163 |
| Gadsden | 33,617 | — | $787 | $101,900 | $38,699 |
| Opelika | 31,944 | — | $947 | $213,700 | $58,763 |
| Northport | 30,991 | — | $954 | $258,800 | $77,781 |
| Enterprise | 28,990 | — | $1,058 | $198,500 | $68,306 |
| Daphne | 28,673 | — | $1,337 | $309,700 | $86,479 |
| Homewood | 27,697 | — | $1,457 | $502,300 | $108,386 |
| Athens | 27,474 | — | $834 | $253,700 | $65,000 |
| Trussville | 26,182 | — | $1,450 | $351,500 | $120,794 |
| Bessemer | 25,655 | — | $922 | $129,800 | $37,844 |
Cost Index = BEA Regional Price Parity (US avg = 100) · Income & Rent = US Census ACS
Compare Alabama cities head-to-head
Use our comparison tool to put any two cities side by side. Or explore national rankings to see how Alabama cities stack up across the US. For example, Huntsville vs Birmingham.
Frequently Asked Questions about Cost of Living in Alabama
What is the cost of living in Alabama?
The average cost of living index across cities in Alabama is approximately 90.1 (US average = 100), which is slightly below the US average. Median gross rent averages around $1,098/month and median household income averages around $72,568/year.
What are the cheapest cities to live in Alabama?
The most affordable cities in Alabama by cost of living index are: 1. Huntsville (index 88.3), 2. Birmingham (index 91.0), 3. Hoover (index 91.0).
What is the median rent in Alabama?
The average median gross rent across cities in Alabama is approximately $1,098/month. Rent varies significantly by city and neighborhood — use the city profiles below for specific figures.
What are the income tax rates in Alabama?
Alabama's top marginal state income tax rate is 5.00%. This is the highest bracket rate; lower-income earners pay less. Source: Tax Foundation (2024).
What is the sales tax in Alabama?
Alabama's statewide sales tax rate is 4.00%. Local city and county rates may add to this. Source: Tax Foundation (2024).
Is it expensive to move to Alabama?
Alabama has a cost of living index of approximately 90.1 and average median rent around $1,098/month. It is generally more affordable than the US average, which can offset moving costs over time. Use our moving guides for salary equivalence calculations.
Data last updated: December 1, 2024 · Sources: US Census ACS, BEA RPP, BLS OEWS, HUD FMR, Tax Foundation · Methodology