Alabama · Population 199,322 · Updated March 2026
How far your income goes in Birmingham
State-level tax rates that affect your costs
Birmingham is significantly cheaper than the national average, making it an attractive option for budget-conscious individuals and families. With a cost index of 62 (where 100 equals the national median), Birmingham residents can expect to pay median rent of $1,047/month while earning a median household income of $44,376/year.
The median home value in Birmingham, AL is $138,600, with typical monthly owner costs around $991 including mortgage, insurance, and taxes. With a rent-to-income ratio of 28.3%, Birmingham falls within the generally affordable range, though it's approaching the 30% burden threshold.
Alabama has a moderate income tax rate of 5.0%. Combined with a 4.0% sales tax rate and 0.41% effective property tax rate, the overall tax environment is a factor in the total cost of living in Birmingham.
Common questions about living costs in Birmingham
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