Alabama Cost of Living & Economic Score
Federal Bureau of Economic Analysis data on price levels, real income, and household-budget impact for Alabama. Last updated 2024.
InflationRank Score
Cost of living in Alabama
According to the U.S. Bureau of Economic Analysis, prices in Alabama run 11.5% below the U.S. average (Regional Price Parity index 88.5 on a base of 100). The state sits in the South region. That puts it among the more affordable states in the country .
Real per-capita personal income — what local residents actually earn after adjusting for cost of living — is $49.5K (vs $59K nationally). Locals have somewhat lower real purchasing power than the U.S. average, even after accounting for the state's cheaper or comparable price level.
Notable cost factors: low property tax (0.40%), high combined sales tax (9.29%).
Explore Alabama in the live dashboard →Major metros in Alabama
- Birmingham-Hoover, AL RPP 87.0 B
Compare to other states
About the InflationRank Score
The InflationRank Score is a proprietary 0–100 composite that summarizes a place's cost-of-living and economic conditions on a familiar A–F grading scale. Higher scores reflect a better cost-of-living-adjusted economic situation.
The composite weighs three dimensions sourced from federal government datasets: cost level (how local prices compare to the national average), inflation pressure (recent direction and pace of cost movements), and income resilience (real, cost-adjusted earning power of local residents). The score is anchored to the U.S. national average and reviewed annually as federal data refreshes.
Underlying data is drawn from authoritative federal economic agencies and public housing datasets. See full data sources →