Cost of Living: Minneapolis, MN vs Birmingham, AL (2026)

Minneapolis

Minnesota
102
VS

Birmingham

Alabama
62

Minneapolis is 65% more expensive than Birmingham.

$1,329/mo ↑ 27%
Median Rent
$1,047/mo ↓ 21%
$80,269/yr ↑ 81%
Median Income
$44,376/yr ↓ 45%
$345,600 ↑ 149%
Home Value
$138,600 ↓ 60%
$1,513/mo ↑ 53%
Owner Costs
$991/mo ↓ 35%
426,845
Population
199,322

Tax Comparison

9.85%
Income Tax
5.0%
6.875%
State Sales Tax
4.0%
1.11%
Property Tax
0.41%

Affordability

19.9%
rent-to-income
Affordability
28.3%
rent-to-income

Detailed Comparison

When comparing Minneapolis, MN and Birmingham, AL, the overall cost of living indices are 102 and 62 respectively (national median = 100). Rent is $282/month cheaper in Birmingham, saving renters about $3,384/year.

Median household income is $35,893/year higher in Minneapolis. Home values also differ significantly — the median in Minneapolis is $345,600 compared to $138,600 in Birmingham.

Alabama has a lower income tax rate, making Birmingham slightly more tax-friendly.

Frequently Asked Questions

Minneapolis vs Birmingham — common questions

Is Minneapolis or Birmingham cheaper to live in?
Based on our cost index, Birmingham is cheaper to live in with an index of 62 compared to 102 (US average = 100).
What is the rent difference between Minneapolis and Birmingham?
Median rent in Minneapolis is $1,329/month and in Birmingham it's $1,047/month — a difference of $282/month.
Which city has higher income, Minneapolis or Birmingham?
Median household income is $80,269 in Minneapolis and $44,376 in Birmingham. Median household income is $35,893/year higher in Minneapolis.
How do taxes compare between Minnesota and Alabama?
Minnesota has 9.85% income tax, 6.875% sales tax, and 1.11% property tax. Alabama has 5.0% income tax, 4.0% sales tax, and 0.41% property tax.
Should I move to Minneapolis or Birmingham?
It depends on your priorities. Minneapolis has a cost index of 102 with median rent of $1,329/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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