Median one-bedroom rent across the cities we track is $900 in Alabama versus $889 in New Mexico. Overall, New Mexico runs roughly 1% cheaper on rent than Alabama, its main day-to-day cost driver.
Median household income across tracked cities is $55,687 in Alabama and $65,604 in New Mexico — about 15% higher in New Mexico. Alabama has a top state income tax rate of 5.00% and a 4% state sales tax; New Mexico has a top state income tax rate of 5.90% and a 4.875% state sales tax.
State Taxes
Sales Tax
4%
4.875%
+0.9 pp in New Mexico
Income Tax (top rate)
5.00%
5.90%
+0.9 pp in New Mexico
Housing (median across tracked cities)
Median 1BR Rent
$900
$889
+1% in Alabama
Median Home Value
$148,500
$266,700
+80% in New Mexico
Income (median across tracked cities)
Median Household Income
$55,687
$65,604
+18% in New Mexico
Climate (median across tracked cities)
Avg Annual Temperature
63.3°F
57.2°F
+6.1°F in Alabama
Alabama vs New Mexico — FAQ
- Is it cheaper to live in Alabama or New Mexico?
- New Mexico is cheaper on rent — its median one-bedroom of $889 runs about 1% 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 New Mexico?
- 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 $36,000 in New Mexico.
- Which has lower taxes, Alabama or New Mexico?
- Alabama has a top state income tax rate of 5.00% and a 4% state sales tax. New Mexico has a top state income tax rate of 5.90% and a 4.875% state sales tax.
Housing, income, and climate are medians across the 3/3 cities we track in Alabama/New Mexico — 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.