State Comparison
Alabama vs Mississippi
Side-by-side comparison of 16 financial metrics including taxes, housing costs, cost of living, wages, and insurance — powered by verified government data.
Overall Score
Cost of Living
Housing
Taxes
Income & Employment
Business
Insurance & Living
Key Takeaways
- 1
Alabama leads in 6 of 16 financial metrics, making it the more favorable state overall.
- 2
Housing: Median home prices are $210,000 in Alabama vs $165,000 in Mississippi — a $45,000 difference.
- 3
Taxes: Alabama has a 5% top income tax rate while Mississippi has a 5% top rate. Property tax rates are 0.41% vs 0.81%.
- 4
Cost of Living: Alabama's index is 88.1 and Mississippi's is 83.3 (national average = 100).
Run the Numbers
Use our free calculators with real Alabama and Mississippi data to model your specific scenario.
Frequently Asked Questions
Is Alabama or Mississippi more affordable?
Mississippi has a lower cost of living index (83.3) compared to Alabama (88.1), where 100 is the national average. However, affordability depends on your specific situation — compare housing, taxes, and income together for a complete picture.
Which state has lower taxes — Alabama or Mississippi?
Overall, Alabama has a lower combined tax burden. Alabama has a 5% top income tax, 4% sales tax, and 0.41% property tax. Mississippi has a 5% top income tax, 7% sales tax, and 0.81% property tax.
What are housing costs in Alabama vs Mississippi?
The median home price in Alabama is $210,000 compared to $165,000 in Mississippi. For renters, a 2-bedroom apartment averages $877/month in Alabama vs $815/month in Mississippi.
Which state is better for starting a business — Alabama or Mississippi?
LLC filing costs are $200 in Alabama vs $50 in Mississippi, with annual fees of $0 and $0 respectively. Alabama's 5% top tax rate compared to Mississippi's 5% rate may also factor into your decision.
Should I move from Alabama to Mississippi?
It depends on your priorities. Alabama wins in 6 of 16 metrics we compared. Use our free calculators to model your specific financial scenario — including salary, property tax, and cost of living for each state.
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Related Comparisons
Comparing Alabama and Mississippi
When deciding between living in Alabama or Mississippi, the financial picture goes beyond just one metric. This comparison analyzes 16 key financial indicators sourced from the U.S. Census Bureau, Tax Foundation, HUD Fair Market Rent data, and Bureau of Labor Statistics to give you a comprehensive overview.
Alabama (AL) has a median household income of $56,929 with a cost of living index of 88.1. Mississippi (MS) has a median household income of $48,610 with a cost of living index of 83.3.
These numbers are estimates. Individual circumstances vary based on location within each state, family size, profession, and lifestyle. Use our free Alabama calculator or Mississippi calculator to model your specific financial scenario.
Data sources: Census Bureau ACS, Tax Foundation, HUD FMR, BLS. Last verified January 2026. Calculators provide estimates only — consult a qualified professional for financial advice.