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

Dallas

Texas
97
VS

Montgomery

Alabama
64

Dallas is 52% more expensive than Montgomery.

$1,403/mo ↑ 32%
Median Rent
$1,059/mo ↓ 25%
$67,760/yr ↑ 22%
Median Income
$55,687/yr ↓ 18%
$295,300 ↑ 99%
Home Value
$148,500 ↓ 50%
$1,409/mo ↑ 38%
Owner Costs
$1,023/mo ↓ 27%
1,299,553
Population
198,440

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
22.8%
rent-to-income

Detailed Comparison

When comparing Dallas, TX and Montgomery, AL, the overall cost of living indices are 97 and 64 respectively (national median = 100). Rent is $344/month cheaper in Montgomery, saving renters about $4,128/year.

Median household income is $12,073/year higher in Dallas. Home values also differ significantly — the median in Dallas is $295,300 compared to $148,500 in Montgomery.

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

Frequently Asked Questions

Dallas vs Montgomery — common questions

Is Dallas or Montgomery cheaper to live in?
Based on our cost index, Montgomery is cheaper to live in with an index of 64 compared to 97 (US average = 100).
What is the rent difference between Dallas and Montgomery?
Median rent in Dallas is $1,403/month and in Montgomery it's $1,059/month — a difference of $344/month.
Which city has higher income, Dallas or Montgomery?
Median household income is $67,760 in Dallas and $55,687 in Montgomery. Median household income is $12,073/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 Montgomery?
It depends on your priorities. Dallas has a cost index of 97 with median rent of $1,403/mo, while Montgomery has a cost index of 64 with rent of $1,059/mo. Consider income potential, tax burden, and lifestyle preferences alongside raw cost data.
View Dallas details → View Montgomery details →

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