Cost of Living: Dallas, TX vs Birmingham, AL (2026)

Dallas

Texas
97
VS

Birmingham

Alabama
62

Dallas is 56% more expensive than Birmingham.

$1,403/mo ↑ 34%
Median Rent
$1,047/mo ↓ 25%
$67,760/yr ↑ 53%
Median Income
$44,376/yr ↓ 35%
$295,300 ↑ 113%
Home Value
$138,600 ↓ 53%
$1,409/mo ↑ 42%
Owner Costs
$991/mo ↓ 30%
1,299,553
Population
199,322

Tax Comparison

0%
Income Tax
5.0%
6.25%
State Sales Tax
4.0%
1.6%
Property Tax
0.41%

Affordability

24.8%
rent-to-income
Affordability
28.3%
rent-to-income

Detailed Comparison

When comparing Dallas, TX and Birmingham, AL, the overall cost of living indices are 97 and 62 respectively (national median = 100). Rent is $356/month cheaper in Birmingham, saving renters about $4,272/year.

Median household income is $23,384/year higher in Dallas. Home values also differ significantly — the median in Dallas is $295,300 compared to $138,600 in Birmingham.

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

Frequently Asked Questions

Dallas vs Birmingham — common questions

Is Dallas or Birmingham cheaper to live in?
Based on our cost index, Birmingham is cheaper to live in with an index of 62 compared to 97 (US average = 100).
What is the rent difference between Dallas and Birmingham?
Median rent in Dallas is $1,403/month and in Birmingham it's $1,047/month — a difference of $356/month.
Which city has higher income, Dallas or Birmingham?
Median household income is $67,760 in Dallas and $44,376 in Birmingham. Median household income is $23,384/year higher in Dallas.
How do taxes compare between Texas and Alabama?
Texas has 0% income tax, 6.25% sales tax, and 1.6% property tax. Alabama has 5.0% income tax, 4.0% sales tax, and 0.41% property tax.
Should I move to Dallas or Birmingham?
It depends on your priorities. Dallas has a cost index of 97 with median rent of $1,403/mo, while Birmingham has a cost index of 62 with rent of $1,047/mo. Consider income potential, tax burden, and lifestyle preferences alongside raw cost data.
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