State Comparison
Alabama vs Mississippi
Side-by-side comparison of 16 financial metrics using documented public datasets and estimates, with sources listed below.
Overall Score
Cost of Living
Housing
Taxes
Income & Employment
Business
Insurance & Living
Key Takeaways
- 1
Alabama leads in 8 of 16 financial metrics, making it the more favorable state overall.
- 2
Housing: Median home prices are $242,000 in Alabama vs $198,000 in Mississippi — a $44,000 difference.
- 3
Taxes: Alabama has a 5% top income tax rate while Mississippi has a 4% top rate. Property tax rates are 0.37% vs 0.58%.
- 4
Cost of Living: Alabama's index is 85 and Mississippi's is 86.2 (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?
Alabama has a lower cost of living index (85) compared to Mississippi (86.2), 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?
It depends on what you earn, spend, and own — the three rates below apply to different bases (income, purchases, and home value), so they cannot be added into a single burden figure. On the headline rates alone, Alabama is lower on more of them. Alabama has a 5% top income tax, 4% state sales tax, and a 0.37% effective property tax rate. Mississippi has a 4% top income tax, 7% state sales tax, and a 0.58% effective property tax rate.
What are housing costs in Alabama vs Mississippi?
The typical home value in Alabama is $242,000 compared to $198,000 in Mississippi (Zillow Home Value Index, June 2026). For renters, HUD's FY2026 Fair Market Rent for a 2-bedroom unit — the 40th-percentile gross rent, not an average — is $1,087/month in Alabama vs $1,041/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 $50 and $0 respectively. Alabama's 5% top tax rate compared to Mississippi's 4% rate may also factor into your decision.
Should I move from Alabama to Mississippi?
It depends on your priorities. Alabama wins in 8 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 drawn from the U.S. Census Bureau (American Community Survey), the Tax Foundation, HUD Fair Market Rents, Zillow's Home Value Index, the NAIC's insurance databases, the U.S. Department of Labor, C2ER's Cost of Living Index, and state agencies, to give you a comprehensive overview.
Alabama (AL) has a median household income of $66,659 with a cost of living index of 85. Mississippi (MS) has a median household income of $59,127 with a cost of living index of 86.2. Income figures are Census ACS 1-year estimates (table B19013, 2024); the cost-of-living index is C2ER's Q1 2026 survey via MERIC, where 100 is the national average of surveyed cities.
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.
Sources per metric are named in each row's note above. Last reviewed . Some values are estimates; consult a qualified professional for financial advice.