Is it cheaper to live in Jackson or Montgomery?

Jackson, MS is cheaper. Its monthly baseline of $1,000 (1BR rent + utilities) runs about 2% below Montgomery, AL's $1,020, mainly because of rent.

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

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

Which has lower taxes, Jackson or Montgomery?

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

Jackson vs Montgomery Cost of Living 2026

Jackson

Mississippi

$1,000/mo est.

Montgomery

Alabama

$1,020/mo est.

Monthly estimate = 1BR rent + electricity + gas

A one-person monthly baseline (1BR rent plus typical utilities) runs $1,000 in Jackson, MS versus $1,020 in Montgomery, AL. Overall, Jackson, MS is roughly 2% cheaper to live in day-to-day than Montgomery, AL, driven mainly by rent.

Median household income is $43,238 in Jackson, MS and $55,687 in Montgomery, AL — about 22% higher in Montgomery, AL. Mississippi has a top state income tax rate of 4.00% and a 7% state sales tax; Alabama has a top state income tax rate of 5.00% and a 4% state sales tax.

Jackson, MS

Montgomery, AL

Rent

Studio

$1,085

$864

+20% in Jackson, MS

1 Bedroom

$816

$831

+2% in Montgomery, AL

2 Bedroom

$991

$982

+1% in Jackson, MS

3 Bedroom

$1,121

$1,172

+5% in Montgomery, AL

Buying a Home

Median Home Value

$108,200

$148,500

+37% in Montgomery, AL

Income

Median Household Income

$43,238

$55,687

+29% in Montgomery, AL

Metro Median Wage (annual)

$42,850

$44,950

+5% in Montgomery, AL

People & Lifestyle

Median Age

34.7 yr

36.2 yr

+1.5 yr in Montgomery, AL

Homeownership

48.6%

54.3%

+5.7 pp in Montgomery, AL

Bachelor's+ (25+)

28.6%

33.5%

+4.9 pp in Montgomery, AL

Avg Commute

20.2 min

20.5 min

+0.3 min in Montgomery, AL

Crime (per 100k/yr)

Violent Crime

—

605.5

Property Crime

—

2,258.3

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

Climate

Avg Annual Temperature

65.3°F

65.1°F

+0.2°F in Jackson, MS

Annual Precipitation

54.3 in

53.1 in

+1.3 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)

14.9

16.4

+10% in Montgomery, AL

Natural Gas ($/MCF)

$29.04

$24.06

+17% 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 (MS / AL)

+3.0 pp in MS

Income Tax (top rate)

4.00%

5.00%

+1.0 pp in AL

Jackson vs Montgomery — FAQ

Is it cheaper to live in Jackson or Montgomery?: Jackson, MS is cheaper. Its monthly baseline of $1,000 (1BR rent + utilities) runs about 2% below Montgomery, AL's $1,020, mainly because of rent.
How much more do you need to earn to live in Jackson than in Montgomery?: To keep rent near the recommended 30% of gross income, you'd want to earn roughly $33,000 a year in Jackson versus $33,000 in Montgomery.
Which has lower taxes, Jackson or Montgomery?: Jackson is taxed under Mississippi's rules (a top state income tax rate of 4.00% and a 7% state sales tax); Montgomery 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).