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Cost of living in Alabama

Updated Updated for 2026 tax law

Prices in Alabama are 11.2% below the national average — a Regional Price Parity of 88.8 (U.S. = 100), making it the #7 cheapest of 51 states and DC. Compare Alabama with any other state below, including the effect of taxes.

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Filing status
AlabamaTexasU.S. = 100
All items+9.3%
88.8 vs 97.1
Goods+1.7%
96.4 vs 98.1
Housing (rent)+56.2%
61.8 vs 96.5
Utilities+3.4%
84.6 vs 87.5
Other services+0.4%
96.7 vs 97.1

Price levels: BEA Regional Price Parities 2024 (U.S. = 100), released February 2026. Taxes: 2026 federal, FICA and state income tax, no pre-tax deductions.

Salary in Texas with the same buying power after tax
$78,260
Prices alone: $81,953 (+9.3% cost of living). Taxes save $3,693.
Texas vs Alabama prices
9.3% pricier
Take-home in Alabama at $75,000
$58,466
$4,872 / month
Take-home you'd need in Texas
$63,886
$5,324 / month
Take-home in Texas at the same $75,000
$61,593
$5,133 / month
Same salary: change in real take-home
−3.6%
−$2,293 a year in Alabama buying power

Equivalent after tax = the gross pay in Texas whose take-home, adjusted for Texas prices, buys what your Alabama take-home buys today. Statewide averages — big metros (and rent) vary a lot within a state.

How to compare Alabama with another state

  1. Enter your salary — the calculator starts with Alabama as your current state.
  2. Pick the state you're comparing with (moving to Alabama? press ⇄ to swap).
  3. Read the salary with equal buying power after taxes, and the "same salary" change in your real take-home.

Alabama prices by category

BEA Regional Price Parities, 2024 (U.S. = 100)
CategoryAlabamavs U.S. average
All items88.8−11.2%
Goods96.4−3.6%
Housing (rent)61.8−38.2%
Utilities84.6−15.4%
Other services96.7−3.3%

Low housing costs keep Alabama affordable: rents run 38% below average. The overall price level fell 0.3% relative to the nation versus 2023 (89.1). Housing covers rent and the rental value of owner-occupied homes; "other services" includes health care, dining out, transportation and education.

Take-home pay in Alabama, adjusted for prices

Single filer, 2026 taxes. "Real" and "U.S.-average equivalent" restate take-home and salary at national-average prices.
SalaryTaxesTake-homeReal take-homeU.S.-average equivalent
$50,000$9,714$40,286$45,355$56,292
$75,000$16,534$58,466$65,823$84,438
$100,000$24,922$75,079$84,526$112,583

At $75,000, Alabama ranks #11 of 51 for real take-home pay, after both taxes and prices. Full paycheck details: Alabama paycheck calculator.

What $75,000 in Alabama equals in other states

Prices = price level relative to Alabama. "Salary (after tax)" is what you'd need to earn there, single filer, to live like you do on $75,000 in Alabama once both prices and state taxes are counted.

Neighboring states
StatePricesSalary (prices only)Salary (after tax)
Florida+16.4%$87,320$84,208
Georgia+8.4%$81,307$82,320
Mississippi−2.1%$73,421$71,851
Tennessee+3.4%$77,573$73,407
Cheapest, most expensive and largest states
StatePricesSalary (prices only)Salary (after tax)
Arkansas−2.1%$73,408$71,879
Iowa−1.2%$74,104$72,556
Oklahoma−1.1%$74,173$73,569
California+24.7%$93,489$100,091
Hawaii+23.8%$92,840$99,011
Washington, DC+23.7%$92,798$98,036
New Jersey+22.5%$91,872$95,641
Texas+9.3%$81,953$78,260
New York+21.5%$91,126$95,593

Moving from Alabama to a pricier state? The "after taxes too" column folds in state income tax, so a no-tax state can beat a cheaper state with a high income tax. Statewide averages hide large metro differences — check local rents before you move.

Sources: U.S. Bureau of Economic Analysis, Regional Price Parities by State, 2024 (table SARPP, released February 19, 2026, bea.gov). Take-home pay: our 2026 federal, FICA and state income-tax engine, single filer, no pre-tax deductions; local income taxes are not included.

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Frequently asked questions

Is Alabama expensive to live in?

Alabama has a price level of 88.8 (U.S. = 100), so living costs are 11.2% below the national average. It ranks #7 of 51 from cheapest to most expensive (BEA 2024).

How much do you need to make to live in Alabama?

To match the buying power of a $75,000 salary at national-average prices, you need about $66,617 in Alabama before taxes. After Alabama taxes, $75,000 takes home $58,466 — worth $65,823 at U.S.-average prices, #11 of 51 states.

How much more expensive is rent in Alabama?

Alabama's housing price level is 61.8, meaning rents are 38.2% below the national average. Goods are 96.4 and utilities 84.6.

Which neighboring state is cheapest?

Mississippi (price level 87.0, −2.1% vs Alabama). A $75,000 Alabama salary is equivalent to $71,851 there after taxes.

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Estimates for information only — not tax, legal or financial advice.