Alabama Cost of Living Calculator
Alabama scores 86.0 on the C2ER cost of living index (housing 68.6, Q2 2026): $75,000 at the U.S. average equals about $64,500 here; its highest part is groceries at 95.2.
| Index | Alabama |
|---|---|
| Composite (sets the equivalent salary) | 86.0 |
| Housing (sets the equivalent rent) | 68.6 |
| Groceries | 95.2 |
| Utilities | 94.1 |
| Transportation | 90.9 |
| Health care | 85.2 |
| Other goods and services | 93.8 |
Source: MERIC Cost of Living Data Series, C2ER (https://meric.mo.gov/data/cost-living-data-series).
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Pre-filled: MERIC (C2ER Cost of Living Index)
Additional Details
Pre-filled: MERIC (C2ER Cost of Living Index, Housing component)
Equivalent Salary Needed
Estimated • Based on your inputs
Salary Difference
-$10,500.00
Detailed Breakdown
Disclaimer: This calculator provides estimates for informational purposes only. Results should not be considered financial, tax, or legal advice. Consult a qualified professional for your specific situation.
How This Calculator Works
Calculation methodology and assumptions
Alabama's figures fill the destination side: composite 86.0 for the salary, housing 68.6 for the rent, and 5% top rate for the tax line.
How the salary, rent and tax lines are worked out (the same for every state)
Key State Information
Alabama ranks 2nd lowest of the 50 states on the composite index (86.0). Median household income: $66,659 (U.S. Census Bureau, ACS 2024 1-year, table B19013). Statewide two-bedroom Fair Market Rent (HUD FY2027): $1,175 a month.
What Alabama's index does to a salary and a rent
| Salary at the U.S. average | Same buying power in Alabama | Rent at the U.S. average → in Alabama | Alabama income tax on that salary |
|---|---|---|---|
| $50,000 | $43,000 | $1,000 → $686 | $1,761 (4.1%) |
| $75,000 | $64,500 | $1,500 → $1,029 | $2,707 (4.2%) |
| $100,000 | $86,000 | $2,000 → $1,372 | $3,556 (4.1%) |
| $150,000 | $129,000 | $2,500 → $1,715 | $5,225 (4.1%) |
Alabama 2026 single-filer rates, after Alabama Department of Revenue — 2025 Form 40/40A booklet (Standard Deduction Chart, personal exemption, Federal Income Tax Deduction Worksheet) (tax year 2025).
Alabama and the states it borders
| State | Its composite / housing | $75,000 there = in Alabama | $1,500 rent there = in Alabama | $75,000 in Alabama = there | Income tax there → here |
|---|---|---|---|---|---|
| Florida | 100.8 / 99.3 | $63,988 | $1,036 | $87,907 | none on wages → 5% top rate |
| Georgia | 90.1 / 77.6 | $71,587 | $1,326 | $78,576 | 4.99% flat → 5% top rate |
| Mississippi | 87.4 / 70.8 | $73,799 | $1,453 | $76,221 | 4% top rate → 5% top rate |
| Tennessee | 89.7 / 80.0 | $71,906 | $1,286 | $78,227 | none on wages → 5% top rate |
Frequently Asked Questions
What is the cost of living in Alabama?
Alabama's composite index is 86.0 for Q2 2026, the 2nd lowest of the 50 states. A $75,000 salary at the national average buys what about $64,500 buys in Alabama.
Which prices are highest and lowest in Alabama?
Against a U.S. average of 100, Alabama's highest part is groceries (95.2) and its lowest is housing (68.6); none of the six parts is above the national average (C2ER, Q2 2026).
What salary keeps a two-bedroom rent in Alabama at 30% of income?
About $47,000 a year: Alabama's FY2027 statewide two-bedroom Fair Market Rent is $1,175 a month, and $14,100 a year is 30% of that salary.