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

Montgomery

Alabama
64
VS

Knoxville

Tennessee
74

Montgomery is 14% cheaper than Knoxville.

$1,059/mo ↓ 5%
Median Rent
$1,116/mo ↑ 5%
$55,687/yr ↑ 9%
Median Income
$50,994/yr ↓ 8%
$148,500 ↓ 31%
Home Value
$214,000 ↑ 44%
$1,023/mo ↓ 5%
Owner Costs
$1,075/mo ↑ 5%
198,440
Population
193,721

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
26.3%
rent-to-income

Detailed Comparison

When comparing Montgomery, AL and Knoxville, TN, the overall cost of living indices are 64 and 74 respectively (national median = 100). Rent is $57/month cheaper in Montgomery, saving renters about $684/year.

Median household income is $4,693/year higher in Montgomery. Home values also differ significantly — the median in Montgomery is $148,500 compared to $214,000 in Knoxville.

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

Frequently Asked Questions

Montgomery vs Knoxville — common questions

Is Montgomery or Knoxville cheaper to live in?
Based on our cost index, Montgomery is cheaper to live in with an index of 64 compared to 74 (US average = 100).
What is the rent difference between Montgomery and Knoxville?
Median rent in Montgomery is $1,059/month and in Knoxville it's $1,116/month — a difference of $57/month.
Which city has higher income, Montgomery or Knoxville?
Median household income is $55,687 in Montgomery and $50,994 in Knoxville. Median household income is $4,693/year higher in Montgomery.
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 Knoxville?
It depends on your priorities. Montgomery has a cost index of 64 with median rent of $1,059/mo, while Knoxville has a cost index of 74 with rent of $1,116/mo. Consider income potential, tax burden, and lifestyle preferences alongside raw cost data.
View Montgomery details → View Knoxville details →

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