Cost of Living: Montgomery, AL vs Tyler, TX (2026)

Montgomery

Alabama
64
VS

Tyler

Texas
79

Montgomery is 19% cheaper than Tyler.

$1,059/mo ↓ 12%
Median Rent
$1,199/mo ↑ 13%
$55,687/yr ↓ 15%
Median Income
$65,527/yr ↑ 18%
$148,500 ↓ 31%
Home Value
$216,400 ↑ 46%
$1,023/mo ↓ 13%
Owner Costs
$1,170/mo ↑ 14%
198,440
Population
107,718

Tax Comparison

5.0%
Income Tax
0%
4.0%
State Sales Tax
6.25%
0.41%
Property Tax
1.6%

Affordability

22.8%
rent-to-income
Affordability
22.0%
rent-to-income

Detailed Comparison

When comparing Montgomery, AL and Tyler, TX, the overall cost of living indices are 64 and 79 respectively (national median = 100). Rent is $140/month cheaper in Montgomery, saving renters about $1,680/year.

Median household income is $9,840/year higher in Tyler. Home values also differ significantly — the median in Montgomery is $148,500 compared to $216,400 in Tyler.

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

Frequently Asked Questions

Montgomery vs Tyler — common questions

Is Montgomery or Tyler cheaper to live in?
Based on our cost index, Montgomery is cheaper to live in with an index of 64 compared to 79 (US average = 100).
What is the rent difference between Montgomery and Tyler?
Median rent in Montgomery is $1,059/month and in Tyler it's $1,199/month — a difference of $140/month.
Which city has higher income, Montgomery or Tyler?
Median household income is $55,687 in Montgomery and $65,527 in Tyler. Median household income is $9,840/year higher in Tyler.
How do taxes compare between Alabama and Texas?
Alabama has 5.0% income tax, 4.0% sales tax, and 0.41% property tax. Texas has 0% income tax, 6.25% sales tax, and 1.6% property tax.
Should I move to Montgomery or Tyler?
It depends on your priorities. Montgomery has a cost index of 64 with median rent of $1,059/mo, while Tyler has a cost index of 79 with rent of $1,199/mo. Consider income potential, tax burden, and lifestyle preferences alongside raw cost data.
View Montgomery details → View Tyler details →

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