Cost of Living in Alabama

Alabama has a cost of living index of 100.0, meaning overall expenses are approximately in line with the national average. With 160 cities tracked in our database, the state offers a wide range of living situations from very affordable small towns to pricier metropolitan areas.

Housing is typically the largest expense category. Average rent in Alabama is approximately $1,227 per month, with significant variation between urban centers and rural communities. Median home values average around $408,714 statewide.

The state income tax rate in Alabama is 5%, which directly affects take-home pay. Factor this into salary comparisons when considering a move from states with different tax rates.