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

Birmingham

Alabama
62
VS

Knoxville

Tennessee
74

Birmingham is 16% cheaper than Knoxville.

$1,047/mo ↓ 6%
Median Rent
$1,116/mo ↑ 7%
$44,376/yr ↓ 13%
Median Income
$50,994/yr ↑ 15%
$138,600 ↓ 35%
Home Value
$214,000 ↑ 54%
$991/mo ↓ 8%
Owner Costs
$1,075/mo ↑ 8%
199,322
Population
193,721

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
26.3%
rent-to-income

Detailed Comparison

When comparing Birmingham, AL and Knoxville, TN, the overall cost of living indices are 62 and 74 respectively (national median = 100). Rent is $69/month cheaper in Birmingham, saving renters about $828/year.

Median household income is $6,618/year higher in Knoxville. Home values also differ significantly — the median in Birmingham is $138,600 compared to $214,000 in Knoxville.

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

Frequently Asked Questions

Birmingham vs Knoxville — common questions

Is Birmingham or Knoxville cheaper to live in?
Based on our cost index, Birmingham is cheaper to live in with an index of 62 compared to 74 (US average = 100).
What is the rent difference between Birmingham and Knoxville?
Median rent in Birmingham is $1,047/month and in Knoxville it's $1,116/month — a difference of $69/month.
Which city has higher income, Birmingham or Knoxville?
Median household income is $44,376 in Birmingham and $50,994 in Knoxville. Median household income is $6,618/year higher in Knoxville.
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 Knoxville?
It depends on your priorities. Birmingham has a cost index of 62 with median rent of $1,047/mo, while Knoxville has a cost index of 74 with rent of $1,116/mo. Consider income potential, tax burden, and lifestyle preferences alongside raw cost data.
View Birmingham details → View Knoxville details →

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