Median one-bedroom rent across the cities we track is $900 in Alabama versus $841 in Mississippi. Overall, Mississippi runs roughly 7% cheaper on rent than Alabama, its main day-to-day cost driver.
Median household income across tracked cities is $55,687 in Alabama and $44,140 in Mississippi — about 21% higher in Alabama. Alabama has a top state income tax rate of 5.00% and a 4% state sales tax; Mississippi has a top state income tax rate of 4.00% and a 7% state sales tax.
State Taxes
Sales Tax
4%
7%
+3.0 pp in Mississippi
Income Tax (top rate)
5.00%
4.00%
+1.0 pp in Alabama
Housing (median across tracked cities)
Median 1BR Rent
$900
$841
+7% in Alabama
Median Home Value
$148,500
$153,600
+3% in Mississippi
Income (median across tracked cities)
Median Household Income
$55,687
$44,140
+21% in Alabama
Climate (median across tracked cities)
Avg Annual Temperature
63.3°F
66.1°F
+2.8°F in Mississippi
Alabama vs Mississippi — FAQ
- Is it cheaper to live in Alabama or Mississippi?
- Mississippi is cheaper on rent — its median one-bedroom of $841 runs about 7% below Alabama's $900, based on the cities we track in each state.
- How much more do you need to earn to live in Alabama than in Mississippi?
- To keep rent near the recommended 30% of gross income, based on median rent across tracked cities, you'd want to earn roughly $36,000 a year in Alabama versus $34,000 in Mississippi.
- Which has lower taxes, Alabama or Mississippi?
- Alabama has a top state income tax rate of 5.00% and a 4% state sales tax. Mississippi has a top state income tax rate of 4.00% and a 7% state sales tax.
Housing, income, and climate are medians across the 3/3 cities we track in Alabama/Mississippi — 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.