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

Laredo

Texas
67
VS

Montgomery

Alabama
64

Laredo is 5% more expensive than Montgomery.

$1,001/mo ↓ 5%
Median Rent
$1,059/mo ↑ 6%
$63,264/yr ↑ 14%
Median Income
$55,687/yr ↓ 12%
$182,400 ↑ 23%
Home Value
$148,500 ↓ 19%
$1,066/mo ↑ 4%
Owner Costs
$1,023/mo ↓ 4%
255,949
Population
198,440

Tax Comparison

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

Affordability

19.0%
rent-to-income
Affordability
22.8%
rent-to-income

Detailed Comparison

When comparing Laredo, TX and Montgomery, AL, the overall cost of living indices are 67 and 64 respectively (national median = 100). Rent is $58/month cheaper in Laredo, saving renters about $696/year.

Median household income is $7,577/year higher in Laredo. Home values also differ significantly — the median in Laredo is $182,400 compared to $148,500 in Montgomery.

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

Frequently Asked Questions

Laredo vs Montgomery — common questions

Is Laredo or Montgomery cheaper to live in?
Based on our cost index, Montgomery is cheaper to live in with an index of 64 compared to 67 (US average = 100).
What is the rent difference between Laredo and Montgomery?
Median rent in Laredo is $1,001/month and in Montgomery it's $1,059/month — a difference of $58/month.
Which city has higher income, Laredo or Montgomery?
Median household income is $63,264 in Laredo and $55,687 in Montgomery. Median household income is $7,577/year higher in Laredo.
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 Laredo or Montgomery?
It depends on your priorities. Laredo has a cost index of 67 with median rent of $1,001/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 Laredo details → View Montgomery details →

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