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%.
Price levels in Alabama
| BEA RPP 2024 | Alabama | vs US (100) |
|---|---|---|
| All items | 88.8 | −11.2% |
| Goods | 96.4 | −3.6% |
| Housing (rents) | 61.8 | −38.2% |
| Utilities | 84.6 | −15.4% |
| Other services | 96.7 | −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.
| Metro | Population | Price level | 2-BR FMR | Infant care / wk* | Left over / mo |
|---|---|---|---|---|---|
| Birmingham, AL | 1,197,766 | 91.6 | $1,375 | $147 | $1,103 |
| Huntsville, AL | 556,444 | 93.1 | $1,341 | $136 | $1,239 |
| Mobile, AL | 411,658 | 88.1 | $1,139 | $133 | $1,435 |
| Montgomery, AL | 388,747 | 89.7 | $1,150 | $146 | $1,413 |
| Tuscaloosa, AL | 281,850 | 87.7 | $1,165 | $136 | $1,441 |
| Daphne, AL | 267,761 | 94.7 | $1,434 | $133 | $1,099 |
| Auburn, AL | 208,013 | 87.9 | $1,277 | $135 | $1,249 |
| Decatur, AL | 160,326 | 87.2 | $1,023 | $136 | $1,581 |
| Florence, AL | 156,609 | 84.8 | $1,085 | $136 | $1,582 |
| Dothan, AL | 156,266 | 83.8 | $966 | $122 | $1,648 |
| Anniston, AL | 115,834 | 85.9 | $1,010 | $115 | $1,615 |
| Gadsden, AL | 103,886 | 85.7 | $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 tax | Single, $50,000 | Single, $75,000 | Single, $120,000 | Couple, 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).
Childcare prices across Alabama
| Age band | Center, 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.
| County | Median value | Median tax | Effective rate |
|---|---|---|---|
| Jefferson County | $240,000 | $1,409 | 0.59% |
| Greene County | $81,200 | $444 | 0.55% |
| Macon County | $102,000 | $509 | 0.50% |
| Lee County | $262,200 | $1,252 | 0.48% |
| Mobile County | $190,700 | $888 | 0.47% |
| Pickens County | $123,900 | $364 | 0.29% |
| Lawrence County | $172,300 | $497 | 0.29% |
| Elmore County | $223,900 | $610 | 0.27% |
| Walker County | $135,900 | $356 | 0.26% |
| Bibb County | $145,700 | $298 | 0.20% |
Five highest and five lowest of 31 counties.
Energy and fuel
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).
- Florida16,423 ±4,099
- Georgia15,194 ±2,860
- Tennessee11,339 ±2,639
- Mississippi7,574 ±2,264
- Texas7,428 ±2,159
- California7,145 ±2,936
- Illinois5,231 ±1,900
- Virginia5,056 ±2,688
- Georgia15,804 ±5,475
- Florida11,110 ±3,108
- Tennessee9,789 ±2,113
- Mississippi8,215 ±3,035
- Texas7,015 ±1,777
- North Carolina4,757 ±1,604
- Virginia3,719 ±1,903
- Arizona3,139 ±2,909
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).