Median one-bedroom rent across the cities we track is $1,004 in Alabama versus $889 in Montana. Overall, Montana runs roughly 11% cheaper on rent than Alabama, its main day-to-day cost driver.
Median household income across tracked cities is $44,376 in Alabama and $71,855 in Montana — about 38% higher in Montana. Alabama has a top state income tax rate of 5.00% and a 4% state sales tax; Montana has a top state income tax rate of 5.65% and no state sales tax.
State Taxes
Sales Tax
4%
None
+4.0 pp in Alabama
Income Tax (top rate)
5.00%
5.65%
+0.7 pp in Montana
Housing (median across tracked cities)
Median 1BR Rent
$1,004
$889
+11% in Alabama
Median Home Value
$138,600
$311,800
+125% in Montana
Income (median across tracked cities)
Median Household Income
$44,376
$71,855
+62% in Montana
Climate (median across tracked cities)
Avg Annual Temperature
63.3°F
48.2°F
+15.1°F in Alabama
Alabama vs Montana — FAQ
- Is it cheaper to live in Alabama or Montana?
- Montana is cheaper on rent — its median one-bedroom of $889 runs about 11% below Alabama's $1,004, based on the cities we track in each state.
- How much more do you need to earn to live in Alabama than in Montana?
- 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 $36,000 in Montana.
- Which has lower taxes, Alabama or Montana?
- Alabama has a top state income tax rate of 5.00% and a 4% state sales tax. Montana has a top state income tax rate of 5.65% and no state sales tax.
Housing, income, and climate are medians across the 1/1 cities we track in Alabama/Montana — 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.