Cost of Living in Alabama (AL)
Compare costs across 4 Alabama cities. From home services to salaries, see how AL stacks up against the national average.
4
Cities
86
Avg Cost Index
$43K
Avg Income
Direct Answer
Alabama's average cost index is 86, which is below the national baseline of 100. Mobile is the most affordable tracked city in AL at index 83, while Huntsville is the most expensive at index 91.
The gap between the cheapest and most expensive tracked cities is 8 index points, so state-level averages should be used as a map, not a final budget.
State cost overviewBLS, Census, HUD inputsLast verified May 2026
Alabama Highlights: Most affordable city: Mobile (index 83). Most expensive: Huntsville (index 91). The gap between cheapest and most expensive is 8 index points.
What Drives the Statewide Cost Picture?
Average index
86/100
Alabama is below the national cost baseline across tracked cities.
Cheapest city
Mobile
Mobile has a cost index of 83.
Most expensive
Huntsville
Huntsville has a cost index of 91.
Income average
$43K
Average median household income across 4 tracked AL cities.
Cheapest and Most Expensive Cities in Alabama
| City | Population | Cost Index | Median Income | Tier |
|---|---|---|---|---|
| Huntsville | 215K | 91 | $55K | mid |
| Birmingham | 201K | 85 | $36K | mid |
| Montgomery | 201K | 84 | $43K | mid |
| Mobile | 187K | 83 | $39K | mid |
Alabama State Taxes (2026)
Headline tax rates that affect your real take-home pay and total cost of living in Alabama.
State Income Tax
2-5%
progressive system
Combined Sales Tax
9.24%
4% state + 5.24% avg local
Property Tax (Effective)
0.41%
~$1,230/yr on a $300K home
Income tax: Alabama uses a progressive income tax at 2-5%. No state estate tax. Estimate your take-home pay
State Planning Checklist
- Start with Mobile if the priority is lowest recurring cost inside Alabama.
- Compare Huntsville against salary and tax advantages before assuming the higher-cost city is worse.
- Use city pages for rent, salary, insurance, and local service costs before making a relocation decision.