Cost of Living in Alabama
Based on 3 cities we track in Alabama.
Cost of living in Alabama is shaped mostly by rent across the 3 cities we track there. A one-bedroom apartment runs around $900 a month — 16% lower than the $1,076 median across the 51 states we track.
Median household income across those cities is $55,687, 16% lower than the $66,029 median across the states we track. Alabama has a top state income tax rate of 5.00% and a 4% state sales tax.
State Medians
Median 1BR Rent
$900
Median Home Value
$148,500
Median Income
$55,687
Avg Temperature
63.3°F
Medians across the Alabama cities we track — not a statewide population-weighted figure.
State Taxes
State Sales Tax
4%
State Income Tax (top rate)
Up to 5.00%
Cities in Alabama
Compare Alabama with
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Alabama cost of living — FAQ
- Is Alabama expensive to live in?
- Alabama is around the middle of the 51 states we track. Its median one-bedroom rent of $900 ranks #33 of 51 and is 16% lower than the $1,076 median.
- What is the average rent in Alabama?
- Across the 3 cities we track in Alabama, average rent runs a studio around $857, a one-bedroom around $900, a two-bedroom around $1,005, a three-bedroom around $1,188 per month (US Census ACS).
- What is the median home price in Alabama?
- The median home value across the cities we track in Alabama is $148,500 — 45% lower than the $270,100 median across the states we track.
- Does Alabama have a state income tax?
- Yes — Alabama's top state income tax rate is 5.00% (most filers pay less than the top rate). Its state sales tax rate is 4%; local jurisdictions may add more.
- How much do you need to earn to live in Alabama?
- To keep a one-bedroom rent of $900 near the recommended 30% of gross income, you'd want to earn roughly $36,000 a year. Median household income across the cities we track in Alabama is $55,687.
Sources: US Census Bureau, ACS 5-Year; NOAA Climate Normals 1981–2010; Tax Foundation 2026 (state taxes).