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

Memphis

Tennessee
68
VS

Montgomery

Alabama
64

Memphis is 6% more expensive than Montgomery.

$1,123/mo ↑ 6%
Median Rent
$1,059/mo ↓ 6%
$51,211/yr ↓ 8%
Median Income
$55,687/yr ↑ 9%
$157,100 ↑ 6%
Home Value
$148,500 ↓ 5%
$1,087/mo ↑ 6%
Owner Costs
$1,023/mo ↓ 6%
629,063
Population
198,440

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
22.8%
rent-to-income

Detailed Comparison

When comparing Memphis, TN and Montgomery, AL, the overall cost of living indices are 68 and 64 respectively (national median = 100). Rent is $64/month cheaper in Montgomery, saving renters about $768/year.

Median household income is $4,476/year higher in Montgomery. Home values also differ significantly — the median in Memphis is $157,100 compared to $148,500 in Montgomery.

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

Frequently Asked Questions

Memphis vs Montgomery — common questions

Is Memphis or Montgomery cheaper to live in?
Based on our cost index, Montgomery is cheaper to live in with an index of 64 compared to 68 (US average = 100).
What is the rent difference between Memphis and Montgomery?
Median rent in Memphis is $1,123/month and in Montgomery it's $1,059/month — a difference of $64/month.
Which city has higher income, Memphis or Montgomery?
Median household income is $51,211 in Memphis and $55,687 in Montgomery. Median household income is $4,476/year higher in Montgomery.
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 Montgomery?
It depends on your priorities. Memphis has a cost index of 68 with median rent of $1,123/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 Memphis details → View Montgomery details →

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