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

Montgomery

Alabama
64
VS

Chattanooga

Tennessee
81

Montgomery is 21% cheaper than Chattanooga.

$1,059/mo ↓ 8%
Median Rent
$1,155/mo ↑ 9%
$55,687/yr ↓ 9%
Median Income
$61,028/yr ↑ 10%
$148,500 ↓ 43%
Home Value
$259,200 ↑ 75%
$1,023/mo ↓ 8%
Owner Costs
$1,112/mo ↑ 9%
198,440
Population
182,832

Tax Comparison

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

Affordability

22.8%
rent-to-income
Affordability
22.7%
rent-to-income

Detailed Comparison

When comparing Montgomery, AL and Chattanooga, TN, the overall cost of living indices are 64 and 81 respectively (national median = 100). Rent is $96/month cheaper in Montgomery, saving renters about $1,152/year.

Median household income is $5,341/year higher in Chattanooga. Home values also differ significantly — the median in Montgomery is $148,500 compared to $259,200 in Chattanooga.

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

Frequently Asked Questions

Montgomery vs Chattanooga — common questions

Is Montgomery or Chattanooga cheaper to live in?
Based on our cost index, Montgomery is cheaper to live in with an index of 64 compared to 81 (US average = 100).
What is the rent difference between Montgomery and Chattanooga?
Median rent in Montgomery is $1,059/month and in Chattanooga it's $1,155/month — a difference of $96/month.
Which city has higher income, Montgomery or Chattanooga?
Median household income is $55,687 in Montgomery and $61,028 in Chattanooga. Median household income is $5,341/year higher in Chattanooga.
How do taxes compare between Alabama and Tennessee?
Alabama has 5.0% income tax, 4.0% sales tax, and 0.41% property tax. Tennessee has 0% income tax, 7.0% sales tax, and 0.64% property tax.
Should I move to Montgomery or Chattanooga?
It depends on your priorities. Montgomery has a cost index of 64 with median rent of $1,059/mo, while Chattanooga has a cost index of 81 with rent of $1,155/mo. Consider income potential, tax burden, and lifestyle preferences alongside raw cost data.
View Montgomery details → View Chattanooga details →

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