Alabama vs Arizona Cost of Living
Purchasing power
Your $75,000 is worth different amounts in each state
$85,131
in Alabama
$67,996
in Arizona
Each cell = 1% of purchasing power. Green = value, red = gap.
Spending breakdown
Estimated annual spending on a $75,000 salary
What things actually cost
Real dollar costs side by side
Category breakdown
| Category | Alabama | Arizona | Difference |
|---|---|---|---|
| Housing | 71.2 | 127.3 | -44% |
| Groceries | 97.5 | 101.9 | -4% |
| Utilities | 98.0 | 104.0 | -6% |
| Transportation | 90.5 | 102.1 | -11% |
| Healthcare | 91.2 | 93.4 | -2% |
| Dining & Misc | 95.1 | 105.2 | -10% |
| Overall | 88.1 | 110.3 | -20% |
Index values relative to national average (100). Positive difference = more expensive in Alabama.
What things actually cost
| Item | Alabama | Arizona | Difference |
|---|---|---|---|
| Median home price | $220,000 | $395,000 | $175,000 |
| Average 2BR rent | $997/mo | $1,782/mo | $785 |
| Gas price | $3.13/gal | $3.97/gal | $0.84 |
| Electric bill | $105/mo | $113/mo | $7 |
| Infant childcare | $7,871/yr | $15,625/yr | $7,754 |
Salary equivalent: Alabama → Arizona
What a Alabama salary buys you in Arizona, adjusted for cost of living.
| Salary in Alabama | Equivalent in Arizona | Difference |
|---|---|---|
| $50,000 | $62,599 | $-12,599 |
| $75,000 | $93,899 | $-18,899 |
| $100,000 | $125,199 | $-25,199 |
| $150,000 | $187,798 | $-37,798 |
| $200,000 | $250,397 | $-50,397 |
Positive = your money goes further in Arizona. Based on overall COL index ratio.
Based on MERIC/C2ER 2025 composite indices. Dollar amounts from AAA, EIA, Zillow, and Child Care Aware.
Overview
Arizona is 20% more expensive than Alabama overall. Arizona has an index of 110.3 vs 88.1 for Alabama (national average = 100).
FAQ
Is it cheaper to live in Alabama or Arizona?
Alabama is cheaper to live in. Arizona is 20% more expensive overall. The biggest driver is housing — median home prices are $220,000 in Alabama vs $395,000 in Arizona.
Is Alabama cheaper than Arizona?
Yes, Alabama is 20% cheaper than Arizona overall based on the MERIC/C2ER cost-of-living index. Housing, groceries, and utilities all factor into the difference.
Is Arizona more expensive than Alabama?
Yes, Arizona is 20% more expensive than Alabama based on the MERIC/C2ER composite index. Housing is typically the largest factor in the difference.
What salary in Arizona equals $100,000 in Alabama?
To maintain the same purchasing power as a $100,000 salary in Alabama, you would need approximately $125,199 in Arizona. This is based on the overall cost-of-living index (88.1 vs 110.3).
How do housing costs compare between Alabama and Arizona?
Housing is significantly cheaper in Alabama. Median home prices are $220,000 in Alabama vs $395,000 in Arizona — a $175,000 difference. Average 2-bedroom rent is $997/mo vs $1,782/mo.
What costs more in Alabama vs Arizona?
Housing is 44% lower in Alabama (index 71.2 vs 127.3). Transportation is 11% lower in Alabama (index 90.5 vs 102.1). Dining & Misc is 10% lower in Alabama (index 95.1 vs 105.2).
Is gas cheaper in Alabama or Arizona?
Gas averages $3.13/gallon in Alabama and $3.97/gallon in Arizona — a $0.84 difference per gallon.
Alabama vs Arizona cost of living — how do they compare?
Alabama has an overall cost-of-living index of 88.1 and Arizona has 110.3 (national average = 100). Arizona is 20% more expensive overall. Use the calculator above to see how this affects your specific salary.
How do taxes compare between Alabama and Arizona?
Cost of living is only part of the picture — state income taxes also affect your take-home pay. Alabama allows a full deduction of federal income taxes paid on state returns, which is unusual among states. Arizona has a flat income tax rate of 2.50%, reduced from a progressive system in 2023. Use the Alabama vs Arizona paycheck comparison to see how a specific salary compares after federal and state taxes, FICA, and deductions.
Do I need to file state tax returns in Alabama and Arizona?
Alabama requires residents to file a state income tax return annually, typically due April 15. Arizona requires residents to file a state income tax return annually, typically due April 15. If you move between states mid-year, you typically file a part-year resident return in each state for the income earned while living there.
Where does this cost of living 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 Cost of Living — Housing, groceries, gas, and more
- Arizona Cost of Living — Housing, groceries, gas, and more
- Alabama vs Arizona Paycheck Comparison — Compare take-home pay after taxes
- House Affordability in Alabama — How much house can you afford?
- House Affordability in Arizona — How much house can you afford?
- Alabama Tax Brackets — See 2026 marginal rates
- Arizona Tax Brackets — See 2026 marginal rates
- Alabama Mortgage Calculator — Estimate monthly payments with local rates
- Arizona Mortgage Calculator — Estimate monthly payments with local rates
- Alabama Bonus Tax Calculator — See how bonuses are taxed differently
- Arizona Bonus Tax Calculator — See how bonuses are taxed differently
- Gross-Up Calculator — Find the salary you need to hit a target take-home
- Salary to Hourly Converter — Convert annual salary to hourly rate
- Compare any two states
Based on MERIC/C2ER 2025 composite indices and publicly available price data. Cost of living varies significantly by metro area within a state. These are statewide averages.