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State profile · South region

Cost of living in Alabama

Prices in Alabama are 11.2% below the US average (45th highest of 51). A single filer on $75,000 pays $3,127 in state income tax. State sales tax: 4%.

Data:Income tax: 2026 law · BEA Regional Price Parities 2024 · HUD Fair Market Rents FY2027 · Census ACS 5-year 2020-2024 · DOL childcare prices 2022 · EIA energy prices electricity 2025, natural gas 2024, gasoline week ending 2026-10-05 · State sales tax 2026-10-13 · Census migration flows ACS 5-year 2016-2020 · sources & methods

Price levels in Alabama

BEA RPP 2024Alabamavs US (100)
All items88.8−11.2%
Goods96.4−3.6%
Housing (rents)61.8−38.2%
Utilities84.6−15.4%
Other services96.7−3.3%

Metros in Alabama

Metros whose principal city is in Alabama. “Left over” = a single renter earning $60,000, after 2026 taxes (including the principal city’s local tax) and modeled costs.

MetroPopulationPrice level2-BR FMRInfant care / wk*Left over / mo
Birmingham, AL1,197,76691.6$1,375$147$1,103
Huntsville, AL556,44493.1$1,341$136$1,239
Mobile, AL411,65888.1$1,139$133$1,435
Montgomery, AL388,74789.7$1,150$146$1,413
Tuscaloosa, AL281,85087.7$1,165$136$1,441
Daphne, AL267,76194.7$1,434$133$1,099
Auburn, AL208,01387.9$1,277$135$1,249
Decatur, AL160,32687.2$1,023$136$1,581
Florence, AL156,60984.8$1,085$136$1,582
Dothan, AL156,26683.8$966$122$1,648
Anniston, AL115,83485.9$1,010$115$1,615
Gadsden, AL103,88685.7$975$118$1,586

*Center-based, DOL 2022 price for the metro’s principal county; a year in brackets marks an older latest-available price. “No data”: DOL publishes no price for that county, and childcare is left out of its budgets.

Also partly in Alabama: Columbus, GA-AL.

Taxes in Alabama (2026)

Annual taxSingle, $50,000Single, $75,000Single, $120,000Couple, 2 kids, $120,000
Federal income tax$3,820$7,670$17,570$5,640
Social Security + Medicare$3,825$5,738$9,180$9,180
Alabama income tax$2,069$3,127$4,882$5,208
Alabama payroll taxes$0$0$0$0
Take-home pay / month$3,357$4,872$7,364$8,331

Annual liability, standard deduction, Child Tax Credit; local income taxes are not included in this state-level table (see each metro). On $75,000, Alabama’s income and payroll taxes cost $3,127 a year more than in a state without them (federal taxes are the same: $13,408).

State sales tax (2026-10-13)
4%
state rate only; local rates add on
Groceries
Taxed at 2%
State sales and use tax on food (SNAP-eligible food) is 2% since September 1, 2025 (Act 2025-305; was 3% from 9/1/2023 and 4% before). Local sales taxes also ap

Childcare prices across Alabama

Age bandCenter, median county / wk (2022)Center / yr today*Home-based / wk (2022)
Infant (under 2)$135$8,579$129
Toddler (2)$132$8,368$129
Preschool (3–4)$125$7,944$128
School-age (5–12)$113$7,166$105

Center-based infant care ranges from $114 a week in Randolph County to $147 in Shelby County (2022 prices).

DOL National Database of Childcare Prices, 2022; median across 67 counties with 2022 data. *52 weeks × 1.2224 BLS CPI for day care and preschool, 2022 average to 2026-08. Look up a county.

Property taxes by county

Effective rate = Census median real estate taxes ÷ median home value (ACS 2020-2024), metro-area counties.

CountyMedian valueMedian taxEffective rate
Jefferson County$240,000$1,4090.59%
Greene County$81,200$4440.55%
Macon County$102,000$5090.50%
Lee County$262,200$1,2520.48%
Mobile County$190,700$8880.47%
Pickens County$123,900$3640.29%
Lawrence County$172,300$4970.29%
Elmore County$223,900$6100.27%
Walker County$135,900$3560.26%
Bibb County$145,700$2980.20%

Five highest and five lowest of 31 counties.

Energy and fuel

Avg electric bill
$184/mo
1,145 kWh
Electricity price
16.09¢/kWh
latest month 16.40¢
Natural gas
$18.63/Mcf
Gasoline
$3.91/gal
Gulf Coast (PADD)

EIA: electricity 2025, natural gas 2024, gasoline week ending 2026-10-05.

Who moves to and from Alabama

Census state-to-state migration flows (2024 ACS 1-year; people 1 year and over, ± margin of error at 90%). Totals cover moves between states and DC only: 119,767 in, 97,317 out (net +22,450).

Top origins
Top destinations

Frequently asked questions

Is Alabama expensive to live in?+

BEA’s Regional Price Parities put Alabama’s overall price level at 88.8 in 2024 (US = 100), the 45th highest of 51 states and DC. Housing is 61.8 and goods 96.4.

Does Alabama have a state income tax?+

Yes. A single filer earning $75,000 owes about $3,127 in Alabama income tax under 2026 law (4.2% of pay).

What is the sales tax in Alabama?+

The state rate is 4% (as of 2026-10-13); groceries are taxed at 2%. Local sales taxes can add to this.

What is the most affordable metro in Alabama?+

For a single renter earning $60,000, Dothan, AL leaves the most each month after taxes and modeled costs ($1,648), and Daphne, AL the least ($1,099).