Is it cheaper to live in Annapolis or Birmingham?

Birmingham, AL is cheaper. Its monthly baseline of $1,190 (1BR rent + utilities) runs about 35% below Annapolis, MD's $1,820, mainly because of rent.

How much more do you need to earn to live in Annapolis than in Birmingham?

To keep rent near the recommended 30% of gross income, you'd want to earn roughly $64,000 a year in Annapolis versus $40,000 in Birmingham.

Which has lower taxes, Annapolis or Birmingham?

Annapolis is taxed under Maryland's rules (a top state income tax rate of 6.50% and a 6% state sales tax); Birmingham under Alabama's (a top state income tax rate of 5.00% and a 4% state sales tax).

Annapolis vs Birmingham Cost of Living 2026

Annapolis

Maryland

$1,820/mo est.

Birmingham

Alabama

$1,190/mo est.

Monthly estimate = 1BR rent + electricity + gas

A one-person monthly baseline (1BR rent plus typical utilities) runs $1,820 in Annapolis, MD versus $1,190 in Birmingham, AL. Overall, Birmingham, AL is roughly 35% cheaper to live in day-to-day than Annapolis, MD, driven mainly by rent.

Median household income is $104,257 in Annapolis, MD and $44,376 in Birmingham, AL — about 57% higher in Annapolis, MD. Maryland has a top state income tax rate of 6.50% and a 6% state sales tax; Alabama has a top state income tax rate of 5.00% and a 4% state sales tax.

Annapolis, MD

Birmingham, AL

Rent

Studio

$1,239

$857

+31% in Annapolis, MD

1 Bedroom

$1,598

$1,004

+37% in Annapolis, MD

2 Bedroom

$1,864

$1,005

+46% in Annapolis, MD

3 Bedroom

$2,232

$1,188

+47% in Annapolis, MD

Buying a Home

Median Home Value

$510,200

$138,600

+73% in Annapolis, MD

Income

Median Household Income

$104,257

$44,376

+57% in Annapolis, MD

Metro Median Wage (annual)

$59,070

$47,770

+19% in Annapolis, MD

People & Lifestyle

Median Age

40.9 yr

35.9 yr

+5.0 yr in Annapolis, MD

Homeownership

59.8%

45.1%

+14.7 pp in Annapolis, MD

Bachelor's+ (25+)

53.7%

30.7%

+23.0 pp in Annapolis, MD

Avg Commute

28.7 min

21.5 min

+7.2 min in Annapolis, MD

Crime (per 100k/yr)

Violent Crime

806

1,274.7

+58% in Birmingham, AL

Property Crime

2,111.5

4,233

+100% in Birmingham, AL

FBI Crime Data Explorer. Offenses per 100,000 residents per year; agency reporting practices vary, so this is approximate.

Climate

Avg Annual Temperature

57.1°F

63.3°F

+6.2°F in Birmingham, AL

Annual Precipitation

—

53.7 in

Gas

Regular Gasoline

$3.86/gal

$3.62/gal

+6% in Annapolis, MD

Area: East Coast (PADD 1) vs Gulf Coast (PADD 3).

Utilities

Electricity (¢/kWh)

21.8

16.8

+23% in Annapolis, MD

Natural Gas ($/MCF)

$18.94

$22.64

+20% in Birmingham, AL

Residential, state-level averages (EIA). MCF = 1,000 cubic feet.

Groceries

Milk (gal)

$4.00

about equal

Bread (lb)

$1.75

about equal

Eggs (doz)

$2.21

about equal

Ground Beef (lb)

$6.45

about equal

Chicken (lb)

$1.90

about equal

Bananas (lb)

$0.62

about equal

Average prices — South vs South (BLS). Regional where available, otherwise U.S. average.

State Taxes

Sales Tax (MD / AL)

+2.0 pp in MD

Income Tax (top rate)

6.50%

5.00%

+1.5 pp in MD

Annapolis vs Birmingham — FAQ

Is it cheaper to live in Annapolis or Birmingham?: Birmingham, AL is cheaper. Its monthly baseline of $1,190 (1BR rent + utilities) runs about 35% below Annapolis, MD's $1,820, mainly because of rent.
How much more do you need to earn to live in Annapolis than in Birmingham?: To keep rent near the recommended 30% of gross income, you'd want to earn roughly $64,000 a year in Annapolis versus $40,000 in Birmingham.
Which has lower taxes, Annapolis or Birmingham?: Annapolis is taxed under Maryland's rules (a top state income tax rate of 6.50% and a 6% state sales tax); Birmingham under Alabama's (a top state income tax rate of 5.00% and a 4% state sales tax).

Sources: US Census Bureau, ACS 5-Year (rent, income, home value, demographics); NOAA Climate Normals 1981–2010 (climate); EIA weekly retail (gas); Tax Foundation 2026 (state taxes).