Alabama vs Texas Cost of Living
Purchasing power
Your $75,000 is worth different amounts in each state
$85,131
in Alabama
$82,327
in Texas
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 | Texas | Difference |
|---|---|---|---|
| Housing | 71.2 | 79.4 | -10% |
| Groceries | 97.5 | 95.3 | +2% |
| Utilities | 98.0 | 102.9 | -5% |
| Transportation | 90.5 | 92.9 | -3% |
| Healthcare | 91.2 | 96.8 | -6% |
| Dining & Misc | 95.1 | 95.2 | 0% |
| Overall | 88.1 | 91.1 | -3% |
Index values relative to national average (100). Positive difference = more expensive in Alabama.
What things actually cost
| Item | Alabama | Texas | Difference |
|---|---|---|---|
| Median home price | $220,000 | $295,000 | $75,000 |
| Average 2BR rent | $997/mo | $1,112/mo | $115 |
| Gas price | $3.13/gal | $3.21/gal | $0.08 |
| Electric bill | $105/mo | $87/mo | +$19 |
| Infant childcare | $7,871/yr | $10,706/yr | $2,835 |
Salary equivalent: Alabama → Texas
What a Alabama salary buys you in Texas, adjusted for cost of living.
| Salary in Alabama | Equivalent in Texas | Difference |
|---|---|---|
| $50,000 | $51,703 | $-1,703 |
| $75,000 | $77,554 | $-2,554 |
| $100,000 | $103,405 | $-3,405 |
| $150,000 | $155,108 | $-5,108 |
| $200,000 | $206,810 | $-6,810 |
Positive = your money goes further in Texas. Based on overall COL index ratio.
Based on MERIC/C2ER 2025 composite indices. Dollar amounts from AAA, EIA, Zillow, and Child Care Aware.
Overview
Texas is 3% more expensive than Alabama overall. Texas has an index of 91.1 vs 88.1 for Alabama (national average = 100).
FAQ
Is it cheaper to live in Alabama or Texas?
Alabama is cheaper to live in. Texas is 3% more expensive overall. The biggest driver is housing — median home prices are $220,000 in Alabama vs $295,000 in Texas.
Is Alabama cheaper than Texas?
Yes, Alabama is 3% cheaper than Texas overall based on the MERIC/C2ER cost-of-living index. Housing, groceries, and utilities all factor into the difference.
Is Texas more expensive than Alabama?
Yes, Texas is 3% more expensive than Alabama based on the MERIC/C2ER composite index. Housing is typically the largest factor in the difference.
What salary in Texas equals $100,000 in Alabama?
To maintain the same purchasing power as a $100,000 salary in Alabama, you would need approximately $103,405 in Texas. This is based on the overall cost-of-living index (88.1 vs 91.1).
How do housing costs compare between Alabama and Texas?
Housing is significantly cheaper in Alabama. Median home prices are $220,000 in Alabama vs $295,000 in Texas — a $75,000 difference. Average 2-bedroom rent is $997/mo vs $1,112/mo.
What costs more in Alabama vs Texas?
Housing is 10% lower in Alabama (index 71.2 vs 79.4). Healthcare is 6% lower in Alabama (index 91.2 vs 96.8). Utilities is 5% lower in Alabama (index 98 vs 102.9).
Is gas cheaper in Alabama or Texas?
Gas averages $3.13/gallon in Alabama and $3.21/gallon in Texas — a $0.08 difference per gallon.
Alabama vs Texas cost of living — how do they compare?
Alabama has an overall cost-of-living index of 88.1 and Texas has 91.1 (national average = 100). Texas is 3% more expensive overall. Use the calculator above to see how this affects your specific salary.
How do taxes compare between Alabama and Texas?
Cost of living is only part of the picture — state income taxes also affect your take-home pay. Use the Alabama vs Texas paycheck comparison to see how a specific salary compares after federal and state taxes, FICA, and deductions.
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
- Texas Cost of Living — Housing, groceries, gas, and more
- Alabama vs Texas Paycheck Comparison — Compare take-home pay after taxes
- House Affordability in Alabama — How much house can you afford?
- House Affordability in Texas — How much house can you afford?
- 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.