Alabama · Population 107,699 · Updated March 2026
How far your income goes in Tuscaloosa
State-level tax rates that affect your costs
Tuscaloosa is significantly cheaper than the national average, making it an attractive option for budget-conscious individuals and families. With a cost index of 73 (where 100 equals the national median), Tuscaloosa residents can expect to pay median rent of $1,005/month while earning a median household income of $48,536/year.
The median home value in Tuscaloosa, AL is $236,600, with typical monthly owner costs around $1,038 including mortgage, insurance, and taxes. The median rent-to-income ratio of 24.8% means housing is relatively affordable here — well below the 30% threshold that HUD considers cost-burdened.
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 Tuscaloosa.
Common questions about living costs in Tuscaloosa
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