Dothan 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.
IndexDothanAlabamaNational
Cost of living index8689100
IndexDothanAlabamaNational
Goods & Services index8798100
Groceries index10198100
Health care index8485100
Housing index7773100
Transportation index9392100
Utilities index8799100
A general overview of the cost of living index for Dothan, AL is displayed above. In Dothan, AL, the overall cost of living index is 86, which is 3% lower than the Alabama average and 14% lower than the U.S. average. The following categories are used to calculate the overall cost of living index: goods/services (33%), housing (30%), groceries (13%), utilities (10%), transportation (9%) and health care (5%). From the list, it is clear that the categories of goods/services and housing are responsible for the largest portions of the overall cost of living index. As a general rule, everyday goods and services provide an accurate measure of the general cost of goods in any given city. In the case of Dothan, AL, the city's goods and services are 11% lower than the Alabama average and 13% lower than the U.S. average.

Did you know?

  • The cost of living in Dothan is 3% lower than the Alabama average.
  • The cost of living in Dothan is 14% lower than the national average.
  • The cost of housing in Dothan is 23% 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.

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Salary Calculator

This is how much you would need to earn in
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Groceries index
Health care index
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Transportation index
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The salary calculator is meant to help you compare your salary in Dothan, AL to your potential earning power in another city. This can help you deduce what your salary would need to be in any given city in order for you to live the same lifestyle that you do in your current city. In other words, if you plan on moving to a city where the cost of living is higher than in Dothan, AL, you'll have to make more money in the new city in order to maintain the lifestyle you currently enjoy. To use the Dothan, AL salary calculator, simply input the new city, then move the adjustable slider to match your current income. Once you've selected your income, the calculator will determine if that income is sufficient to support your standard of living in the new city you entered. The calculator will also supply you with a rundown of living costs in the new city.

Median Income & Debt-To-Income Ratio

Median IncomePer YearPer MonthMax Budget (28% DTI)Max Budget (36% DTI)
Owners$57,516$4,793$1,342$1,726
Renters$25,697$2,141$600$771
If you want to find a good determining factor for the cost of living and the general affordability of housing in Dothan, AL, all you must look at is the percentage of monthly income that should be spent on housing expenses, otherwise known as the debt-to-income ratio (DTI). Generally speaking, no more than 28 percent of your total gross income should be spent on your housing expenses and not more than 36 percent of your gross income on total expenses, including debts. In Dothan, AL, the median monthly income is $57,516 for those who own their own homes. Under the standard rule, that income level would allow for $1,342 to be budgeted for housing expenses each month, at the most. Renters, on the other hand, earn about $25,697, per the median income in the area. That would allow for renters to spend up to $600 on monthly rental expenses.

Alabama Sales Tax

StateGeneral Sales TaxWith Max Surtax
Alabama4%10%

Alabama Income Tax

StateIncome Tax (Low)Income Tax (High)
Alabama2%5%
When you are determining the total cost of living in Dothan, AL you will want to make sure you consider both the Alabama sales tax and the Alabama income tax rates. Sales tax come in the form of taxes levied on both services and goods that are sold. The sales tax rates are different state to state and range from zero sales tax to higher than 7%. The sales tax in Alabama is 4%, with the highest surtax being 10%. Tax that is on income by the government is income tax. Different states have different income tax rates and these rates can be higher or lower dependent on the corresponding tax bracket. The state income tax rates are different state to state and range from no income tax to more than 9% income tax. The income tax rates in Alabama have a range from 2% to 5%.

Goods & Services

ItemDothanNational avg.Difference
Haircut $12.33$14.5915.5%
Beauty Salon $19.07$34.6845.0%
Toothpaste $2.32$2.476.2%
Shampoo $0.95$1.027.0%
Movie $9.88$9.870.1%
Bowling $3.00$4.3931.7%

Groceries

ItemDothanNational avg.Difference
Ground Beef $4.99$4.4811.5%
Fried Chicken $1.42$1.463.0%
Milk $2.68$2.3613.7%
Potatoes $3.32$3.068.4%
Pizza $8.00$9.2413.4%
Beer $7.95$8.637.9%

Health Care

ItemDothanNational avg.Difference
Optometrist $69.00$99.7830.8%
Doctor $70.00$105.0333.4%
Dentist $72.50$88.7018.3%
Ibuprofen $10.15$9.417.8%
Lipitor $308.57$298.503.4%

Housing

ItemDothanNational avg.Difference
Home Price $137,700.00$175,700.0021.6%
Avg. Mortgage Payment $877.13$1,081.0318.9%
Apartment Rent $684.00$920.0025.7%

Transportation

ItemDothanNational avg.Difference
Gasoline $1.99$2.094.7%
Tire Balancing $39.99$45.2911.7%

Utilities

ItemDothanNational avg.Difference
All Electricity$145.28$170.8014.9%
Phone $25.55$28.269.6%
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.
Napier Field, AL39575-25%
Newville, AL42976-24%
Cottonwood, AL1,29677-23%
Grimes, AL52177-23%
Slocomb, AL1,93677-23%
Dothan, AL67,57486-14%

Cities with similar population

City, StatePopulationCost of Living IndexNational Avg.
Weston, FL67,56713535%
Glen Burnie, MD67,5591099%
Flower Mound, TX67,63012121%
Redondo Beach, CA67,51117979%
Flagstaff, AZ67,4191077%
Dothan, AL67,57486-14%
Source: The Dothan, AL cost of living data displayed above is derived from the Council for Community and Economic Research (C2ER) for the fourth quarter of 2015.