Cost of Living: Phoenix, AZ vs Birmingham, AL (2026)

Phoenix

Arizona
109
VS

Birmingham

Alabama
62

Phoenix is 76% more expensive than Birmingham.

$1,458/mo ↑ 39%
Median Rent
$1,047/mo ↓ 28%
$77,041/yr ↑ 74%
Median Income
$44,376/yr ↓ 42%
$381,900 ↑ 176%
Home Value
$138,600 ↓ 64%
$1,430/mo ↑ 44%
Owner Costs
$991/mo ↓ 31%
1,624,832
Population
199,322

Tax Comparison

2.5%
Income Tax
5.0%
5.6%
State Sales Tax
4.0%
0.62%
Property Tax
0.41%

Affordability

22.7%
rent-to-income
Affordability
28.3%
rent-to-income

Detailed Comparison

When comparing Phoenix, AZ and Birmingham, AL, the overall cost of living indices are 109 and 62 respectively (national median = 100). Rent is $411/month cheaper in Birmingham, saving renters about $4,932/year.

Median household income is $32,665/year higher in Phoenix. Home values also differ significantly — the median in Phoenix is $381,900 compared to $138,600 in Birmingham.

Arizona has a lower income tax rate, making Phoenix slightly more tax-friendly.

Frequently Asked Questions

Phoenix vs Birmingham — common questions

Is Phoenix or Birmingham cheaper to live in?
Based on our cost index, Birmingham is cheaper to live in with an index of 62 compared to 109 (US average = 100).
What is the rent difference between Phoenix and Birmingham?
Median rent in Phoenix is $1,458/month and in Birmingham it's $1,047/month — a difference of $411/month.
Which city has higher income, Phoenix or Birmingham?
Median household income is $77,041 in Phoenix and $44,376 in Birmingham. Median household income is $32,665/year higher in Phoenix.
How do taxes compare between Arizona and Alabama?
Arizona has 2.5% income tax, 5.6% sales tax, and 0.62% property tax. Alabama has 5.0% income tax, 4.0% sales tax, and 0.41% property tax.
Should I move to Phoenix or Birmingham?
It depends on your priorities. Phoenix has a cost index of 109 with median rent of $1,458/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.
View Phoenix details → View Birmingham details →

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