Median one-bedroom rent across the cities we track is $1,004 in Alabama versus $1,126 in Minnesota. Overall, Alabama runs roughly 11% cheaper on rent than Minnesota, its main day-to-day cost driver.
Median household income across tracked cities is $44,376 in Alabama and $80,269 in Minnesota — about 45% higher in Minnesota. Alabama has a top state income tax rate of 5.00% and a 4% state sales tax; Minnesota has a top state income tax rate of 9.85% and a 6.875% state sales tax.
State Taxes
Sales Tax
4%
6.875%
+2.9 pp in Minnesota
Income Tax (top rate)
5.00%
9.85%
+4.8 pp in Minnesota
Housing (median across tracked cities)
Median 1BR Rent
$1,004
$1,126
+12% in Minnesota
Median Home Value
$138,600
$287,500
+107% in Minnesota
Income (median across tracked cities)
Median Household Income
$44,376
$80,269
+81% in Minnesota
Climate (median across tracked cities)
Avg Annual Temperature
63.3°F
47.1°F
+16.2°F in Alabama
Alabama vs Minnesota — FAQ
- Is it cheaper to live in Alabama or Minnesota?
- Alabama is cheaper on rent — its median one-bedroom of $1,004 runs about 11% below Minnesota's $1,126, based on the cities we track in each state.
- How much more do you need to earn to live in Alabama than in Minnesota?
- 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 $45,000 in Minnesota.
- Which has lower taxes, Alabama or Minnesota?
- Alabama has a top state income tax rate of 5.00% and a 4% state sales tax. Minnesota has a top state income tax rate of 9.85% and a 6.875% state sales tax.
Housing, income, and climate are medians across the 1/3 cities we track in Alabama/Minnesota — 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.