Bessemer cost of living index

In the event that the cost of living data was unavailable for this city, estimates based upon nearby cities were used. Each cost of living index is based on a national average of 100. If the amount is below 100, it is lower than the national average. If the amount is above 100, it is higher than the national average.
IndexBessemerAlabamaNational
Cost of living index8589100
IndexBessemerAlabamaNational
Goods & Services index9998100
Groceries index10298100
Health care index8185100
Housing index5973100
Transportation index8992100
Utilities index9399100
Displayed above is a general overview of the Bessemer, AL cost of living index. The overall cost of living index in Bessemer, AL is 85, which is 5% lower than the Alabama average and 15% lower than the national average. The cost of living index is created from the following categories: goods/services (33%), groceries (13%), health care (5%), housing (30%), transportation (9%) and utilities (10%). As you can see, goods/services and housing make up the majority of the overall cost of living index. Everyday goods and services can be a good indicator of the general cost of goods in a given city. In this case, the goods and services in Bessemer, AL are 1% higher than the Alabama average and 1% lower than the national average.

Did you know?

  • The cost of living in Bessemer is 5% lower than the Alabama average.
  • The cost of living in Bessemer is 15% lower than the national average.
  • The cost of housing in Bessemer is 41% lower than the national average.
  • Alabama general sales tax is 21% lower than the national average.
  • Alabama state income tax is 10% lower than the national average.

Find Real Estate Listings In Bessemer

Location
Price
Bedrooms
Bathrooms
 

New Real Estate Listings In Bessemer

Compare Bessemer, AL Cost of living To Other Cities

Salary Calculator

This is how much you would need to earn in
Price difference in compared to
Cost of living index
Goods & Services index
Groceries index
Health care index
Housing index
Transportation index
Utilities index
Using the salary calculator lets you compare the salary you earn in Bessemer, AL to what it is in other cities. It will let you know what your earnings would have to be in another city to have the same standard of living, as determined by the cost of living in each city. For example, if the cost of living in the area you want to move to is higher than the cost of living in Bessemer, AL, you have to earn a higher income in order to still have the same standard of living. To operate the Bessemer, AL salary calculator, put in the name of the other city, then move the slider to the point that represents the current income. The salary calculator will take care of the rest and tell you how much more or less you must earn in the new city. A Total breakdown of the cost of living is also provided.

Median Income & Debt-To-Income Ratio

Median IncomePer YearPer MonthMax Budget (28% DTI)Max Budget (36% DTI)
Owners$42,044$3,504$981$1,261
Renters$19,064$1,589$445$572
A good way to judge both the affordability of the housing and the cost of living is by simply calculating the maximum that a person should spend on housing in Bessemer, AL, otherwise known as the debt-to-income ratio (DTI). The safest way to live in the city is to avoid spending more than 28 percent of the gross income that one earns on costs that pertain to housing and no more than 36 percent on all expenses and debts. Bessemer, AL has a median income of about $42,044 for people who own homes. Based on that number, a person should spend a maximum of $981 on expenses related to housing. Renters have a slightly different median income, which is $19,064. Based on this average, renters should spend no more than $445 on all of their rental costs if they want to maintain a non-impoverished standard of living.

Alabama Sales Tax

StateGeneral Sales TaxWith Max Surtax
Alabama4%10%

Alabama Income Tax

StateIncome Tax (Low)Income Tax (High)
Alabama2%5%
When assessing the complete cost of living in Bessemer, AL, the Alabama income tax and the Alabama sales tax percentages should unquestionably be taken into consideration. Sales taxes aren't just levies imposed onto sold goods, but they also include taxes that are charged when services are provided for a fee. The rates are different from state to state and can run has high as 7 percent. Some states have no sales tax at all. The Alabama maximum surtax is 10%, and the Alabama sales tax is 4%. By contrast, income tax is an unfortunate obligation that is charged by the government against earnings. Just like sales taxes, the rates for income taxes differ from state to state. They also decrease or increase according to the individual's tax bracket. Tax rates can run as high as 9 percent, with a minimum of zero. Income tax rates range from 2% to 5% in Alabama.

Goods & Services

ItemBessemerNational avg.Difference
Haircut $14.50$14.590.6%
Beauty Salon $29.50$34.6814.9%
Toothpaste $2.49$2.470.7%
Shampoo $0.92$1.0210.0%
Movie $10.06$9.871.9%
Bowling $4.65$4.395.9%

Groceries

ItemBessemerNational avg.Difference
Ground Beef $4.47$4.480.2%
Fried Chicken $1.34$1.468.5%
Milk $2.29$2.362.8%
Potatoes $4.38$3.0643.1%
Pizza $10.00$9.248.2%
Beer $7.93$8.638.1%

Health Care

ItemBessemerNational avg.Difference
Optometrist $109.33$99.789.6%
Doctor $86.00$105.0318.1%
Dentist $65.67$88.7026.0%
Ibuprofen $7.69$9.4118.3%
Lipitor $247.00$298.5017.3%

Housing

ItemBessemerNational avg.Difference
Home Price $90,500.00$175,700.0048.5%
Avg. Mortgage Payment $846.13$1,081.0321.7%
Apartment Rent $712.00$920.0022.6%

Transportation

ItemBessemerNational avg.Difference
Gasoline $1.90$2.098.9%
Tire Balancing $37.90$45.2916.3%

Utilities

ItemBessemerNational avg.Difference
All Electricity$166.92$170.802.3%
Phone $24.33$28.2613.9%
Although the cost of living data is updated regularly, this cost of living information is to be used as estimates only as prices can change on an ongoing basis.

Nearby cities with low cost of living

City, StatePopulationCost of Living IndexNational Avg.
McDonald Chapel, AL51478-22%
Lipscomb, AL2,33180-20%
Mulga, AL95280-20%
Brantleyville, AL94180-20%
North Johns, AL21281-19%
Bessemer, AL27,20285-15%

Cities with similar population

City, StatePopulationCost of Living IndexNational Avg.
Milton, MA27,20416060%
Fortuna Foothills, AZ27,1811022%
Lake Jackson, TX27,22491-9%
Glen Cove, NY27,16115757%
Bergenfield, NJ27,15714343%
Bessemer, AL27,20285-15%
Source: The Bessemer, AL cost of living data displayed above is derived from the Council for Community and Economic Research (C2ER) for the fourth quarter of 2015.