Alabama's cost of living index is 89 — 11.0% below the US average of 100. Compare purchasing power and equivalent salaries across states.
CoL Index
89
US avg = 100
vs. National Avg
-11.0%
Less expensive
Median Income
$54,943
Alabama median household
Equiv. at US Avg
$61,734
Same purchasing power
| CoL Index | 89 | MIT/MERIC composite index (US avg = 100) |
| vs. National | 11.0% | Below average cost |
| Median Household Income | $54,943 | Alabama median (2023 ACS) |
| National Purchasing Power | $61,734 | Equivalent $ at US avg CoL |
| Overall Category | Low | Qualitative classification |
| Population | 5,024,279 | 2020 US Census |
With a cost of living index of 89, Alabama is 11% below the national average. Lower costs in Alabama mean your dollar goes further. A salary of $54,943 in Alabama provides the equivalent purchasing power of $61,734 in a state at the national average.
Housing is typically the largest driver of cost of living differences between states.Alabama's median home price of $218,000 is well below the national median of approximately $310,000. Other factors include state income tax (5% top rate in Alabama), sales tax (4.00% state rate), and local property tax rates (0.41%).
