Is it cheaper to live in Birmingham or Memphis?

Memphis, TN is cheaper. Its monthly baseline of $1,110 (1BR rent + utilities) runs about 7% below Birmingham, AL's $1,190, mainly because of rent.

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

To keep rent near the recommended 30% of gross income, you'd want to earn roughly $40,000 a year in Birmingham versus $38,000 in Memphis.

Which has lower taxes, Birmingham or Memphis?

Birmingham is taxed under Alabama's rules (a top state income tax rate of 5.00% and a 4% state sales tax); Memphis under Tennessee's (no state income tax and a 7% state sales tax).

Birmingham vs Memphis Cost of Living 2026

Birmingham

Alabama

$1,190/mo est.

Memphis

Tennessee

$1,110/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 $1,110 in Memphis, TN. Overall, Memphis, TN is roughly 7% cheaper to live in day-to-day than Birmingham, AL, driven mainly by rent.

Median household income is $44,376 in Birmingham, AL and $51,211 in Memphis, TN — about 13% higher in Memphis, TN. 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.

Birmingham, AL

Memphis, TN

Rent

Studio

$857

$877

+2% in Memphis, TN

1 Bedroom

$1,004

$948

+6% in Birmingham, AL

2 Bedroom

$1,005

$1,073

+7% in Memphis, TN

3 Bedroom

$1,188

$1,281

+8% in Memphis, TN

Buying a Home

Median Home Value

$138,600

$157,100

+13% in Memphis, TN

Income

Median Household Income

$44,376

$51,211

+15% in Memphis, TN

Metro Median Wage (annual)

$47,770

$46,890

+2% in Birmingham, AL

People & Lifestyle

Median Age

35.9 yr

34.3 yr

+1.6 yr in Birmingham, AL

Homeownership

45.1%

46.0%

+0.9 pp in Memphis, TN

Bachelor's+ (25+)

30.7%

28.2%

+2.5 pp in Birmingham, AL

Avg Commute

21.5 min

21.3 min

+0.2 min in Birmingham, AL

Crime (per 100k/yr)

Violent Crime

1,274.7

2,507.6

+97% in Memphis, TN

Property Crime

4,233

6,966.3

+65% in Memphis, TN

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

63.1°F

+0.2°F in Birmingham, AL

Annual Precipitation

53.7 in

+0.0 in in Birmingham, AL

Gas

Regular Gasoline

$3.62/gal

$3.94/gal

+9% in Memphis, TN

Area: Gulf Coast (PADD 3) vs Midwest (PADD 2).

Public Transit

Base Fare (one-way)

—

$1.75

Adult base one-way fare — — vs MATA (2026).

Utilities

Electricity (¢/kWh)

16.8

14.5

+14% in Birmingham, AL

Natural Gas ($/MCF)

$22.64

$16.83

+26% 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 (AL / TN)

+3.0 pp in TN

Income Tax (top rate)

5.00%

None

+5.0 pp in AL

Birmingham vs Memphis — FAQ

Is it cheaper to live in Birmingham or Memphis?: Memphis, TN is cheaper. Its monthly baseline of $1,110 (1BR rent + utilities) runs about 7% below Birmingham, AL's $1,190, mainly because of rent.
How much more do you need to earn to live in Birmingham than in Memphis?: To keep rent near the recommended 30% of gross income, you'd want to earn roughly $40,000 a year in Birmingham versus $38,000 in Memphis.
Which has lower taxes, Birmingham or Memphis?: Birmingham is taxed under Alabama's rules (a top state income tax rate of 5.00% and a 4% state sales tax); Memphis under Tennessee's (no state income tax 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).