Alabama vs Tennessee Cost of Living
Purchasing power
Your $75,000 is worth different amounts in each state
$85,131
in Alabama
$83,241
in Tennessee
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 | Tennessee | Difference |
|---|---|---|---|
| Housing | 71.2 | 82.4 | -14% |
| Groceries | 97.5 | 96.8 | +1% |
| Utilities | 98.0 | 88.1 | +11% |
| Transportation | 90.5 | 88.7 | +2% |
| Healthcare | 91.2 | 86.4 | +6% |
| Dining & Misc | 95.1 | 95.3 | 0% |
| Overall | 88.1 | 90.1 | -2% |
Index values relative to national average (100). Positive difference = more expensive in Alabama.
What things actually cost
| Item | Alabama | Tennessee | Difference |
|---|---|---|---|
| Median home price | $220,000 | $310,000 | $90,000 |
| Average 2BR rent | $997/mo | $1,154/mo | $157 |
| Gas price | $3.13/gal | $3.14/gal | $0.01 |
| Electric bill | $105/mo | $97/mo | +$9 |
| Infant childcare | $7,871/yr | $12,249/yr | $4,378 |
Salary equivalent: Alabama → Tennessee
What a Alabama salary buys you in Tennessee, adjusted for cost of living.
| Salary in Alabama | Equivalent in Tennessee | Difference |
|---|---|---|
| $50,000 | $51,135 | $-1,135 |
| $75,000 | $76,703 | $-1,703 |
| $100,000 | $102,270 | $-2,270 |
| $150,000 | $153,405 | $-3,405 |
| $200,000 | $204,540 | $-4,540 |
Positive = your money goes further in Tennessee. Based on overall COL index ratio.
Based on MERIC/C2ER 2025 composite indices. Dollar amounts from AAA, EIA, Zillow, and Child Care Aware.
Overview
Tennessee is 2% more expensive than Alabama overall. Tennessee has an index of 90.1 vs 88.1 for Alabama (national average = 100).
FAQ
Is it cheaper to live in Alabama or Tennessee?
Alabama is cheaper to live in. Tennessee is 2% more expensive overall. The biggest driver is housing — median home prices are $220,000 in Alabama vs $310,000 in Tennessee.
Is Alabama cheaper than Tennessee?
Yes, Alabama is 2% cheaper than Tennessee overall based on the MERIC/C2ER cost-of-living index. Housing, groceries, and utilities all factor into the difference.
Is Tennessee more expensive than Alabama?
Yes, Tennessee 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 Tennessee equals $100,000 in Alabama?
To maintain the same purchasing power as a $100,000 salary in Alabama, you would need approximately $102,270 in Tennessee. This is based on the overall cost-of-living index (88.1 vs 90.1).
How do housing costs compare between Alabama and Tennessee?
Housing is significantly cheaper in Alabama. Median home prices are $220,000 in Alabama vs $310,000 in Tennessee — a $90,000 difference. Average 2-bedroom rent is $997/mo vs $1,154/mo.
What costs more in Alabama vs Tennessee?
Housing is 14% lower in Alabama (index 71.2 vs 82.4). Utilities is 11% higher in Alabama (index 98 vs 88.1). Healthcare is 6% higher in Alabama (index 91.2 vs 86.4).
Is gas cheaper in Alabama or Tennessee?
Gas averages $3.13/gallon in Alabama and $3.14/gallon in Tennessee — a $0.01 difference per gallon.
Alabama vs Tennessee cost of living — how do they compare?
Alabama has an overall cost-of-living index of 88.1 and Tennessee has 90.1 (national average = 100). Tennessee is 2% more expensive overall. Use the calculator above to see how this affects your specific salary.
How do taxes compare between Alabama and Tennessee?
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. Tennessee has no state income tax on wages. It fully repealed its tax on investment income in 2021. Use the Alabama vs Tennessee 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 Tennessee?
Alabama requires residents to file a state income tax return annually, typically due April 15. Tennessee has no state income tax, so residents do not file a state tax return. 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
- Tennessee Cost of Living — Housing, groceries, gas, and more
- Alabama vs Tennessee Paycheck Comparison — Compare take-home pay after taxes
- House Affordability in Alabama — How much house can you afford?
- House Affordability in Tennessee — How much house can you afford?
- Alabama Tax Brackets — See 2026 marginal rates
- Tennessee Tax Brackets — See 2026 marginal rates
- Alabama Mortgage Calculator — Estimate monthly payments with local rates
- Tennessee Mortgage Calculator — Estimate monthly payments with local rates
- Alabama Bonus Tax Calculator — See how bonuses are taxed differently
- Tennessee 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.