Median one-bedroom rent across the cities we track is $1,004 in Alabama versus $1,142 in Tennessee. Overall, Alabama runs roughly 12% cheaper on rent than Tennessee, its main day-to-day cost driver.
Median household income across tracked cities is $44,376 in Alabama and $63,204 in Tennessee — about 30% higher in Tennessee. Alabama has a top state income tax rate of 5.00% and a 4% state sales tax; Tennessee has no state income tax and a 7% state sales tax.
State Taxes
Sales Tax
4%
7%
+3.0 pp in Tennessee
Income Tax (top rate)
5.00%
None
+5.0 pp in Alabama
Housing (median across tracked cities)
Median 1BR Rent
$1,004
$1,142
+14% in Tennessee
Median Home Value
$138,600
$270,100
+95% in Tennessee
Income (median across tracked cities)
Median Household Income
$44,376
$63,204
+42% in Tennessee
Climate (median across tracked cities)
Avg Annual Temperature
63.3°F
61.3°F
+2.0°F in Alabama
Alabama vs Tennessee — FAQ
- Is it cheaper to live in Alabama or Tennessee?
- Alabama is cheaper on rent — its median one-bedroom of $1,004 runs about 12% below Tennessee's $1,142, based on the cities we track in each state.
- How much more do you need to earn to live in Alabama than in Tennessee?
- 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 $46,000 in Tennessee.
- Which has lower taxes, Alabama or Tennessee?
- Alabama has a top state income tax rate of 5.00% and a 4% state sales tax. Tennessee has no state income tax and a 7% state sales tax.
Housing, income, and climate are medians across the 1/2 cities we track in Alabama/Tennessee — 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.