Cost of Living: Louisville, KY vs Birmingham, AL (2026)

Louisville

Kentucky
74
VS

Birmingham

Alabama
62

Louisville is 19% more expensive than Birmingham.

$1,069/mo ↑ 2%
Median Rent
$1,047/mo ↓ 2%
$64,731/yr ↑ 46%
Median Income
$44,376/yr ↓ 31%
$221,500 ↑ 60%
Home Value
$138,600 ↓ 37%
$1,118/mo ↑ 13%
Owner Costs
$991/mo ↓ 11%
627,210
Population
199,322

Tax Comparison

4.0%
Income Tax
5.0%
6.0%
State Sales Tax
4.0%
0.83%
Property Tax
0.41%

Affordability

19.8%
rent-to-income
Affordability
28.3%
rent-to-income

Detailed Comparison

When comparing Louisville, KY and Birmingham, AL, the overall cost of living indices are 74 and 62 respectively (national median = 100). Rent is comparable in both cities, with less than $50/month separating them.

Median household income is $20,355/year higher in Louisville. Home values also differ significantly — the median in Louisville is $221,500 compared to $138,600 in Birmingham.

Kentucky has a lower income tax rate, making Louisville slightly more tax-friendly.

Frequently Asked Questions

Louisville vs Birmingham — common questions

Is Louisville or Birmingham 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 Louisville and Birmingham?
Median rent in Louisville is $1,069/month and in Birmingham it's $1,047/month — a difference of $22/month.
Which city has higher income, Louisville or Birmingham?
Median household income is $64,731 in Louisville and $44,376 in Birmingham. Median household income is $20,355/year higher in Louisville.
How do taxes compare between Kentucky and Alabama?
Kentucky has 4.0% income tax, 6.0% sales tax, and 0.83% property tax. Alabama has 5.0% income tax, 4.0% sales tax, and 0.41% property tax.
Should I move to Louisville or Birmingham?
It depends on your priorities. Louisville has a cost index of 74 with median rent of $1,069/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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More Comparisons

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