Cost of Living in Alabama
What it costs to live in Alabama, how much tax you'll pay, and what common jobs keep after rent and everyday costs.
- Population
- 5,157,699
- Median household income
- $66,659
- State income tax
- Up to 5%
- Cost of living (US = 100)
- 88.8
What a typical paycheck keeps in Alabama
The typical Alabama worker earns $45,670 (BLS). After taxes, a statewide 1-bedroom rent and everyday costs, $7,923 is left. Pick a city for local rents and pay.
- Typical salary
- $45,670
- Federal income tax
- −$3,300
- Payroll taxes
- −$3,494
- State income tax
- −$1,878
- Rent, 1-bedroom
- −$12,120
- Everyday costs
- −$16,955
a year, or $660 a month
Pay: BLS OEWS statewide median. Rent: HUD FY2027, population-weighted across Alabama.
Cost of living in Alabama
Prices across Alabama run 11% below the US average (BEA, 2024).
- Housing38% below the US average
- Goods (food, clothing, cars)4% below the US average
- Utilities15% below the US average
- Other services (healthcare and more)3% below the US average
- All items11% below the US average
Monthly budget for one person
| Cost | Monthly | Yearly |
|---|---|---|
| Rent, 1-bedroom | $1,010 | $12,120 |
| Food | $476 | $5,712 |
| Transportation | $376 | $4,512 |
| Healthcare | $341 | $4,092 |
| Utilities | $220 | $2,640 |
| Total before taxes | $2,423 | $29,076 |
Rent is the statewide average of county fair market rents, weighted by population. City rents differ.
Alabama taxes
State income tax, single filer (2026)
| Taxable income over | Rate |
|---|---|
| $0 | 2% |
| $500 | 4% |
| $3,000 | 5% |
Standard deduction phase-out is applied per dollar rather than in $500 steps. Some Alabama cities (e.g. Birmingham) levy occupational taxes; none of the launch cities do.
Taxes on the median household income
$66,659 of wages, one single filer (Census 2024 median).
| Federal income tax | −$5,835 |
| Payroll taxes | −$5,099 |
| State income tax | −$2,801 |
| Effective tax rate | 20.6% |
Cities in Alabama
What a typical worker keeps after taxes, rent and everyday costs in each Alabama city we cover.
What common jobs keep in Alabama
The 15 jobs that keep the most: statewide median pay, and what's left after taxes, a statewide 1-bedroom rent and everyday costs.
| Job | Median pay | You keep |
|---|---|---|
| Pharmacist | $134,630 | $68,772 |
| Lawyer | $131,970 | $67,054 |
| Software engineer | $122,540 | $60,967 |
| Nurse practitioner | $105,750 | $49,824 |
| Veterinarian | $105,630 | $49,744 |
| Physician assistant | $104,960 | $49,300 |
| Data scientist | $103,120 | $48,077 |
| Project manager | $100,820 | $46,549 |
| Civil engineer | $99,010 | $45,346 |
| Physical therapist | $97,290 | $44,202 |
| Occupational therapist | $94,050 | $42,050 |
| Lineman | $92,030 | $40,707 |
| Financial analyst | $91,290 | $40,215 |
| Registered nurse | $77,080 | $30,772 |
| Accountant | $74,880 | $29,311 |
Salary pages in Alabama, A–Z
Pay range, what’s kept and the best cities for each job.
- Accountant
- Auto mechanic
- Carpenter
- Civil engineer
- Data scientist
- Dental assistant
- Dental hygienist
- Diesel mechanic
- Electrician
- Financial analyst
- Firefighter
- HVAC technician
- Lawyer
- Licensed practical nurse
- Lineman
- Medical assistant
- Nurse practitioner
- Nursing assistant
- Occupational therapist
- Paralegal
- Paramedic
- Pharmacist
- Pharmacy technician
- Physical therapist
- Physician assistant
- Plumber
- Police officer
- Project manager
- Radiologic technologist
- Registered nurse
- Respiratory therapist
- Social worker
- Software engineer
- Speech-language pathologist
- Teacher
- Truck driver
- Veterinarian
- Welder
Top-paying jobs in Alabama
Median pay, jobs with at least 1,000 workers (BLS OEWS). Linked jobs have a salary page.
| Job | Median pay |
|---|---|
| Physicians, All Other | $272,610 |
| Nurse Anesthetists | $190,300 |
| Architectural and Engineering Managers | $162,350 |
| Engineers, All Other | $152,550 |
| Financial Managers | $140,500 |
| Computer and Information Systems Managers | $138,670 |
| Managers, All Other | $135,890 |
| Pharmacists | $134,630 |
| Lawyers | $131,970 |
| Computer Network Architects | $130,810 |
| Purchasing Managers | $130,710 |
| Aerospace Engineers | $127,540 |
| Electrical Engineers | $125,630 |
| Sales Managers | $124,040 |
| Information Security Analysts | $122,730 |
Living in Alabama
Alabama against the US (Census Bureau, ACS 2024).
| Measure | Alabama | US |
|---|---|---|
| Median home value | $233,300 | $360,600 |
| Median rent paid | $1,077 | $1,487 |
| Unemployment rate | 4.2% | 4.6% |
| Living below the poverty line | 15.2% | 12.2% |
| Adults with a bachelor's degree or higher | 29.8% | 36.9% |
| Average commute, one way | 26 minutes | 27.2 minutes |
| Working from home | 8.3% | 13.3% |
Nearby states
Compare Alabama with another state or city: what a job keeps in each, side by side.
Questions people ask
What is the cost of living in Alabama?
Prices in Alabama are 11% below the US average (BEA Regional Price Parities, 2024). The statewide fair market rent for a 1-bedroom is $1,010 a month (HUD, FY2027), and everyday costs for one person come to about $1,413 a month.
Does Alabama have a state income tax?
Yes. Alabama's income tax rate is up to 5%. On a typical wage of $45,670, a single filer pays about $1,878 a year in state income tax.
How much do you need to earn to live in Alabama?
A single person renting a 1-bedroom at the statewide fair market rent needs about $35,300 a year before tax to cover taxes, rent and everyday costs. The typical worker in Alabama earns $45,670 and keeps $7,923 after those costs.
Where in Alabama does a paycheck go furthest?
Of the Alabama cities we cover, a typical worker keeps the most in Huntsville ($9,687 a year after taxes, rent and everyday costs) and the least in Birmingham ($6,727).
What jobs pay the most in Alabama?
Among jobs with at least 1,000 workers, the highest median pay in Alabama goes to Physicians, All Other ($272,610); Nurse Anesthetists ($190,300); Architectural and Engineering Managers ($162,350) (BLS OEWS).
Sources and method
Everyday costs: BLS Consumer Expenditure Survey 2024 (one-person households) × CPI-U to August 2026 × BEA Regional Price Parities 2024. Taxes assume a single filer with the standard deduction and wage income only.
- Census Bureau, American Community Survey 2024 1-year estimates
- BLS OEWS May 2025, state estimates
- HUD Fair Market Rents, FY2027
- BLS Consumer Expenditure Surveys 2024, Table 1400 (size of consumer unit)
- BLS Consumer Price Index (CPI-U)
- BEA Regional Price Parities by state, 2024
Data compiled October 13, 2026. How we calculate