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

Memphis

Tennessee
68
VS

Birmingham

Alabama
62

Memphis is 10% more expensive than Birmingham.

$1,123/mo ↑ 7%
Median Rent
$1,047/mo ↓ 7%
$51,211/yr ↑ 15%
Median Income
$44,376/yr ↓ 13%
$157,100 ↑ 13%
Home Value
$138,600 ↓ 12%
$1,087/mo ↑ 10%
Owner Costs
$991/mo ↓ 9%
629,063
Population
199,322

Tax Comparison

0%
Income Tax
5.0%
7.0%
State Sales Tax
4.0%
0.64%
Property Tax
0.41%

Affordability

26.3%
rent-to-income
Affordability
28.3%
rent-to-income

Detailed Comparison

When comparing Memphis, TN and Birmingham, AL, the overall cost of living indices are 68 and 62 respectively (national median = 100). Rent is $76/month cheaper in Birmingham, saving renters about $912/year.

Median household income is $6,835/year higher in Memphis. Home values also differ significantly — the median in Memphis is $157,100 compared to $138,600 in Birmingham.

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

Frequently Asked Questions

Memphis vs Birmingham — common questions

Is Memphis or Birmingham cheaper to live in?
Based on our cost index, Birmingham is cheaper to live in with an index of 62 compared to 68 (US average = 100).
What is the rent difference between Memphis and Birmingham?
Median rent in Memphis is $1,123/month and in Birmingham it's $1,047/month — a difference of $76/month.
Which city has higher income, Memphis or Birmingham?
Median household income is $51,211 in Memphis and $44,376 in Birmingham. Median household income is $6,835/year higher in Memphis.
How do taxes compare between Tennessee and Alabama?
Tennessee has 0% income tax, 7.0% sales tax, and 0.64% property tax. Alabama has 5.0% income tax, 4.0% sales tax, and 0.41% property tax.
Should I move to Memphis or Birmingham?
It depends on your priorities. Memphis has a cost index of 68 with median rent of $1,123/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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