Cost of Living in Alabama
Overall index: 88.1 — ranked #48 of 51 (one of the most affordable).
Where your money goes in Alabama
Estimated spending breakdown on a $75,000 salary in Alabama
Estimated annual spending: $55,738($19,262 remaining)
What things cost in Alabama
| Item | Alabama | US Average | Difference |
|---|---|---|---|
| Median home price | $220,000 | $360,000 | $-140,000 |
| Average 2BR rent | $997/mo | $1,400/mo | $-403 |
| Gas (regular) | $3.13/gal | $3.50/gal | $0.37 |
| Electric bill | $105/mo | $137/mo | $32 |
| Infant childcare | $7,871/yr | $13,500/yr | $5,629 |
| Dozen eggs | $4.83 | $4.95 | $0.12 |
| Monthly groceries | $400/mo | $410/mo | $10 |
Sources: AAA gas prices, EIA electricity, Zillow ZHVI, Child Care Aware, MERIC/C2ER indices. Eggs and groceries estimated from MERIC grocery index applied to BLS averages.
Cost of living index by category
National average = 100 for each category
Salary equivalent: Alabama vs national average
What a salary in Alabama is actually worth in national-average purchasing power.
| Salary | Purchasing power | Difference |
|---|---|---|
| $50,000 | $44,050 | $-5,950 |
| $75,000 | $66,075 | $-8,925 |
| $100,000 | $88,100 | $-11,900 |
| $125,000 | $110,125 | $-14,875 |
| $150,000 | $132,150 | $-17,850 |
| $200,000 | $176,200 | $-23,800 |
Negative difference means your money goes further in Alabama than the national average.
Compare Alabama with other states
FAQ
What is the cost of living in Alabama?
Alabama has an overall cost-of-living index of 88.1, making it one of the most affordable (ranked #48 of 51 states, where #1 is most expensive). The national average is 100. Housing is the biggest factor — median home prices are $220,000 and average 2-bedroom rent is $997/month.
Is Alabama expensive to live in?
No, Alabama is more affordable than most states with an overall index of 88.1 (average = 100). Housing is particularly affordable at 71.2% of the national average.
How much does housing cost in Alabama?
The median home price in Alabama is $220,000 and average 2-bedroom rent is $997/month. Alabama's housing index is 71.2 (national average = 100), meaning housing is 28.799999999999997% below the national average.
How much are groceries in Alabama?
Alabama's grocery index is 97.5 (national average = 100). A dozen eggs costs approximately $4.83 and a typical monthly grocery bill for a household runs about $400, compared to the national average of $410.
What is the average electric bill in Alabama?
The average monthly electric bill in Alabama is $105 based on the state's residential rate of 11.9¢/kWh and average household consumption of 886 kWh/month (EIA 2024).
How much does childcare cost in Alabama?
Center-based infant childcare in Alabama averages $7,871/year ($656/month). The national average is approximately $13,500/year. This data is from Child Care Aware of America's 2024 report.
What salary do I need to live comfortably in Alabama?
A $75,000 salary in Alabama has the same purchasing power as $85,131 at the national average cost of living. Because Alabama is below average in cost, your money goes further here. Use the calculator above with your specific salary to see how it compares.
Where does this data come from?
Cost-of-living indices are from the MERIC/C2ER 2025 Annual Average. Dollar amounts use AAA gas prices (March 2025), EIA electricity rates (2024), Child Care Aware childcare costs (2024), Zillow home values (2024-2025), and BEA Regional Price Parities.
Related tools
- Alabama Paycheck Calculator — Calculate take-home pay after Alabama taxes
- House Affordability in Alabama — How much house can you afford?
- Take-Home Pay by State — Compare Alabama take-home pay across all 50 states
- Compare Job Offers — Factor in salary, equity, and cost of living
- Compare any two states
Based on MERIC/C2ER 2025 indices, AAA gas prices (March 2025), EIA electricity rates (2024), Child Care Aware childcare costs (2024), and Zillow home values (2024-2025). Individual costs vary by city, neighborhood, and lifestyle.