Cost of Living: Raleigh, NC vs Birmingham, AL (2026)

Raleigh

North Carolina
110
VS

Birmingham

Alabama
62

Raleigh is 77% more expensive than Birmingham.

$1,468/mo ↑ 40%
Median Rent
$1,047/mo ↓ 29%
$82,424/yr ↑ 86%
Median Income
$44,376/yr ↓ 46%
$377,800 ↑ 173%
Home Value
$138,600 ↓ 63%
$1,487/mo ↑ 50%
Owner Costs
$991/mo ↓ 33%
470,763
Population
199,322

Tax Comparison

4.5%
Income Tax
5.0%
4.75%
State Sales Tax
4.0%
0.8%
Property Tax
0.41%

Affordability

21.4%
rent-to-income
Affordability
28.3%
rent-to-income

Detailed Comparison

When comparing Raleigh, NC and Birmingham, AL, the overall cost of living indices are 110 and 62 respectively (national median = 100). Rent is $421/month cheaper in Birmingham, saving renters about $5,052/year.

Median household income is $38,048/year higher in Raleigh. Home values also differ significantly — the median in Raleigh is $377,800 compared to $138,600 in Birmingham.

North Carolina has a lower income tax rate, making Raleigh slightly more tax-friendly.

Frequently Asked Questions

Raleigh vs Birmingham — common questions

Is Raleigh 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 Raleigh and Birmingham?
Median rent in Raleigh is $1,468/month and in Birmingham it's $1,047/month — a difference of $421/month.
Which city has higher income, Raleigh or Birmingham?
Median household income is $82,424 in Raleigh and $44,376 in Birmingham. Median household income is $38,048/year higher in Raleigh.
How do taxes compare between North Carolina and Alabama?
North Carolina has 4.5% income tax, 4.75% sales tax, and 0.8% property tax. Alabama has 5.0% income tax, 4.0% sales tax, and 0.41% property tax.
Should I move to Raleigh or Birmingham?
It depends on your priorities. Raleigh has a cost index of 110 with median rent of $1,468/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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