Is it cheaper to live in Birmingham or Jackson?

Jackson, MS is cheaper. Its monthly baseline of $1,010 (1BR rent + utilities) runs about 15% below Birmingham, AL's $1,190, mainly because of rent.

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

To keep rent near the recommended 30% of gross income, you'd want to earn roughly $40,000 a year in Birmingham versus $33,000 in Jackson.

Which has lower taxes, Birmingham or Jackson?

Birmingham is taxed under Alabama's rules (a top state income tax rate of 5.00% and a 4% state sales tax); Jackson under Mississippi's (a top state income tax rate of 4.00% and a 7% state sales tax).

Birmingham vs Jackson Cost of Living 2026

Birmingham

Alabama

$1,190/mo est.

Jackson

Mississippi

$1,010/mo est.

Monthly estimate = 1BR rent + electricity + gas

A one-person monthly baseline (1BR rent plus typical utilities) runs $1,190 in Birmingham, AL versus $1,010 in Jackson, MS. Overall, Jackson, MS is roughly 15% cheaper to live in day-to-day than Birmingham, AL, driven mainly by rent.

Median household income is $44,376 in Birmingham, AL and $43,238 in Jackson, MS — about 3% higher in Birmingham, AL. 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.

Birmingham, AL

Jackson, MS

Rent

Studio

$857

$1,085

+27% in Jackson, MS

1 Bedroom

$1,004

$816

+19% in Birmingham, AL

2 Bedroom

$1,005

$991

+1% in Birmingham, AL

3 Bedroom

$1,188

$1,121

+6% in Birmingham, AL

Buying a Home

Median Home Value

$138,600

$108,200

+22% in Birmingham, AL

Income

Median Household Income

$44,376

$43,238

+3% in Birmingham, AL

Metro Median Wage (annual)

$47,770

$42,850

+10% in Birmingham, AL

People & Lifestyle

Median Age

35.9 yr

34.7 yr

+1.2 yr in Birmingham, AL

Homeownership

45.1%

48.6%

+3.5 pp in Jackson, MS

Bachelor's+ (25+)

30.7%

28.6%

+2.1 pp in Birmingham, AL

Avg Commute

21.5 min

20.2 min

+1.3 min in Birmingham, AL

Crime (per 100k/yr)

Violent Crime

1,274.7

—

Property Crime

4,233

—

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

Climate

Avg Annual Temperature

63.3°F

65.3°F

+2.0°F in Jackson, MS

Annual Precipitation

53.7 in

54.3 in

+0.6 in in Jackson, MS

Gas

Regular Gasoline

$3.62/gal

about equal

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

Utilities

Electricity (¢/kWh)

16.8

16.2

+4% in Birmingham, AL

Natural Gas ($/MCF)

$22.64

$27.68

+22% in Jackson, MS

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 (AL / MS)

+3.0 pp in MS

Income Tax (top rate)

5.00%

4.00%

+1.0 pp in AL

Birmingham vs Jackson — FAQ

Is it cheaper to live in Birmingham or Jackson?: Jackson, MS is cheaper. Its monthly baseline of $1,010 (1BR rent + utilities) runs about 15% below Birmingham, AL's $1,190, mainly because of rent.
How much more do you need to earn to live in Birmingham than in Jackson?: To keep rent near the recommended 30% of gross income, you'd want to earn roughly $40,000 a year in Birmingham versus $33,000 in Jackson.
Which has lower taxes, Birmingham or Jackson?: Birmingham is taxed under Alabama's rules (a top state income tax rate of 5.00% and a 4% state sales tax); Jackson under Mississippi's (a top state income tax rate of 4.00% and a 7% 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).