Cost of Living: Birmingham, AL vs Chattanooga, TN (2026)

Birmingham

Alabama
62
VS

Chattanooga

Tennessee
81

Birmingham is 23% cheaper than Chattanooga.

$1,047/mo ↓ 9%
Median Rent
$1,155/mo ↑ 10%
$44,376/yr ↓ 27%
Median Income
$61,028/yr ↑ 38%
$138,600 ↓ 47%
Home Value
$259,200 ↑ 87%
$991/mo ↓ 11%
Owner Costs
$1,112/mo ↑ 12%
199,322
Population
182,832

Tax Comparison

5.0%
Income Tax
0%
4.0%
State Sales Tax
7.0%
0.41%
Property Tax
0.64%

Affordability

28.3%
rent-to-income
Affordability
22.7%
rent-to-income

Detailed Comparison

When comparing Birmingham, AL and Chattanooga, TN, the overall cost of living indices are 62 and 81 respectively (national median = 100). Rent is $108/month cheaper in Birmingham, saving renters about $1,296/year.

Median household income is $16,652/year higher in Chattanooga. Home values also differ significantly — the median in Birmingham is $138,600 compared to $259,200 in Chattanooga.

Tennessee has no state income tax, giving Chattanooga residents a significant tax advantage over Alabama's 5.0% rate.

Frequently Asked Questions

Birmingham vs Chattanooga — common questions

Is Birmingham or Chattanooga cheaper to live in?
Based on our cost index, Birmingham is cheaper to live in with an index of 62 compared to 81 (US average = 100).
What is the rent difference between Birmingham and Chattanooga?
Median rent in Birmingham is $1,047/month and in Chattanooga it's $1,155/month — a difference of $108/month.
Which city has higher income, Birmingham or Chattanooga?
Median household income is $44,376 in Birmingham and $61,028 in Chattanooga. Median household income is $16,652/year higher in Chattanooga.
How do taxes compare between Alabama and Tennessee?
Alabama has 5.0% income tax, 4.0% sales tax, and 0.41% property tax. Tennessee has 0% income tax, 7.0% sales tax, and 0.64% property tax.
Should I move to Birmingham or Chattanooga?
It depends on your priorities. Birmingham has a cost index of 62 with median rent of $1,047/mo, while Chattanooga has a cost index of 81 with rent of $1,155/mo. Consider income potential, tax burden, and lifestyle preferences alongside raw cost data.
View Birmingham details → View Chattanooga details →

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