Cost of Living: Nashville, TN vs Birmingham, AL (2026)

Nashville

Tennessee
110
VS

Birmingham

Alabama
62

Nashville is 77% more expensive than Birmingham.

$1,486/mo ↑ 42%
Median Rent
$1,047/mo ↓ 30%
$75,197/yr ↑ 69%
Median Income
$44,376/yr ↓ 41%
$383,100 ↑ 176%
Home Value
$138,600 ↓ 64%
$1,471/mo ↑ 48%
Owner Costs
$991/mo ↓ 33%
684,298
Population
199,322

Tax Comparison

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

Affordability

23.7%
rent-to-income
Affordability
28.3%
rent-to-income

Detailed Comparison

When comparing Nashville, TN and Birmingham, AL, the overall cost of living indices are 110 and 62 respectively (national median = 100). Rent is $439/month cheaper in Birmingham, saving renters about $5,268/year.

Median household income is $30,821/year higher in Nashville. Home values also differ significantly — the median in Nashville is $383,100 compared to $138,600 in Birmingham.

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

Frequently Asked Questions

Nashville vs Birmingham — common questions

Is Nashville or Birmingham cheaper to live in?
Based on our cost index, Birmingham is cheaper to live in with an index of 62 compared to 110 (US average = 100).
What is the rent difference between Nashville and Birmingham?
Median rent in Nashville is $1,486/month and in Birmingham it's $1,047/month — a difference of $439/month.
Which city has higher income, Nashville or Birmingham?
Median household income is $75,197 in Nashville and $44,376 in Birmingham. Median household income is $30,821/year higher in Nashville.
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 Nashville or Birmingham?
It depends on your priorities. Nashville has a cost index of 110 with median rent of $1,486/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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