Alabama vs Iowa Cost of Living
Purchasing power
Your $75,000 is worth different amounts in each state
$85,131
in Alabama
$83,519
in Iowa
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 | Iowa | Difference |
|---|---|---|---|
| Housing | 71.2 | 77.7 | -8% |
| Groceries | 97.5 | 96.6 | +1% |
| Utilities | 98.0 | 88.0 | +11% |
| Transportation | 90.5 | 99.5 | -9% |
| Healthcare | 91.2 | 95.9 | -5% |
| Dining & Misc | 95.1 | 94.5 | +1% |
| Overall | 88.1 | 89.8 | -2% |
Index values relative to national average (100). Positive difference = more expensive in Alabama.
What things actually cost
| Item | Alabama | Iowa | Difference |
|---|---|---|---|
| Median home price | $220,000 | $210,000 | +$10,000 |
| Average 2BR rent | $997/mo | $1,088/mo | $91 |
| Gas price | $3.13/gal | $3.19/gal | $0.06 |
| Electric bill | $105/mo | $83/mo | +$23 |
| Infant childcare | $7,871/yr | $9,605/yr | $1,734 |
Salary equivalent: Alabama → Iowa
What a Alabama salary buys you in Iowa, adjusted for cost of living.
| Salary in Alabama | Equivalent in Iowa | Difference |
|---|---|---|
| $50,000 | $50,965 | $-965 |
| $75,000 | $76,447 | $-1,447 |
| $100,000 | $101,930 | $-1,930 |
| $150,000 | $152,894 | $-2,894 |
| $200,000 | $203,859 | $-3,859 |
Positive = your money goes further in Iowa. Based on overall COL index ratio.
Based on MERIC/C2ER 2025 composite indices. Dollar amounts from AAA, EIA, Zillow, and Child Care Aware.
Overview
Iowa is 2% more expensive than Alabama overall. Iowa has an index of 89.8 vs 88.1 for Alabama (national average = 100).
FAQ
Is it cheaper to live in Alabama or Iowa?
Alabama is cheaper to live in. Iowa is 2% more expensive overall. The biggest driver is housing — median home prices are $220,000 in Alabama vs $210,000 in Iowa.
Is Alabama cheaper than Iowa?
Yes, Alabama is 2% cheaper than Iowa overall based on the MERIC/C2ER cost-of-living index. Housing, groceries, and utilities all factor into the difference.
Is Iowa more expensive than Alabama?
Yes, Iowa is 2% more expensive than Alabama based on the MERIC/C2ER composite index. Housing is typically the largest factor in the difference.
What salary in Iowa equals $100,000 in Alabama?
To maintain the same purchasing power as a $100,000 salary in Alabama, you would need approximately $101,930 in Iowa. This is based on the overall cost-of-living index (88.1 vs 89.8).
How do housing costs compare between Alabama and Iowa?
Housing is cheaper in Iowa. Median home prices are $220,000 in Alabama vs $210,000 in Iowa — a $10,000 difference. Average 2-bedroom rent is $997/mo vs $1,088/mo.
What costs more in Alabama vs Iowa?
Utilities is 11% higher in Alabama (index 98 vs 88). Transportation is 9% lower in Alabama (index 90.5 vs 99.5). Housing is 8% lower in Alabama (index 71.2 vs 77.7).
Is gas cheaper in Alabama or Iowa?
Gas averages $3.13/gallon in Alabama and $3.19/gallon in Iowa — a $0.06 difference per gallon.
Alabama vs Iowa cost of living — how do they compare?
Alabama has an overall cost-of-living index of 88.1 and Iowa has 89.8 (national average = 100). Iowa is 2% more expensive overall. Use the calculator above to see how this affects your specific salary.
How do taxes compare between Alabama and Iowa?
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. Iowa moved to a flat income tax rate of 3.80% in 2025, down from a multi-bracket system. Use the Alabama vs Iowa 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 Iowa?
Alabama requires residents to file a state income tax return annually, typically due April 15. Iowa 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
- Iowa Cost of Living — Housing, groceries, gas, and more
- Alabama vs Iowa Paycheck Comparison — Compare take-home pay after taxes
- House Affordability in Alabama — How much house can you afford?
- House Affordability in Iowa — How much house can you afford?
- Alabama Tax Brackets — See 2026 marginal rates
- Iowa Tax Brackets — See 2026 marginal rates
- Alabama Mortgage Calculator — Estimate monthly payments with local rates
- Iowa Mortgage Calculator — Estimate monthly payments with local rates
- Alabama Bonus Tax Calculator — See how bonuses are taxed differently
- Iowa 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.