Median one-bedroom rent across the cities we track is $1,004 in Alabama versus $1,253 in Arizona. Overall, Alabama runs roughly 20% cheaper on rent than Arizona, its main day-to-day cost driver.
Median household income across tracked cities is $44,376 in Alabama and $77,041 in Arizona — about 42% higher in Arizona. Alabama has a top state income tax rate of 5.00% and a 4% state sales tax; Arizona has a top state income tax rate of 2.50% and a 5.6% state sales tax.
State Taxes
Sales Tax
4%
5.6%
+1.6 pp in Arizona
Income Tax (top rate)
5.00%
2.50%
+2.5 pp in Alabama
Housing (median across tracked cities)
Median 1BR Rent
$1,004
$1,253
+25% in Arizona
Median Home Value
$138,600
$364,300
+163% in Arizona
Income (median across tracked cities)
Median Household Income
$44,376
$77,041
+74% in Arizona
Climate (median across tracked cities)
Avg Annual Temperature
63.3°F
75.1°F
+11.8°F in Arizona
Alabama vs Arizona — FAQ
- Is it cheaper to live in Alabama or Arizona?
- Alabama is cheaper on rent — its median one-bedroom of $1,004 runs about 20% below Arizona's $1,253, based on the cities we track in each state.
- How much more do you need to earn to live in Alabama than in Arizona?
- To keep rent near the recommended 30% of gross income, based on median rent across tracked cities, you'd want to earn roughly $40,000 a year in Alabama versus $50,000 in Arizona.
- Which has lower taxes, Alabama or Arizona?
- Alabama has a top state income tax rate of 5.00% and a 4% state sales tax. Arizona has a top state income tax rate of 2.50% and a 5.6% state sales tax.
Housing, income, and climate are medians across the 1/3 cities we track in Alabama/Arizona — not population-weighted statewide figures. Taxes are exact state-level rates. Sources: US Census Bureau, ACS 5-Year; NOAA Climate Normals 1981–2010; Tax Foundation 2026.