Madison 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.
IndexMadisonAlabamaNational
Cost of living index10789100
IndexMadisonAlabamaNational
Goods & Services index10496100
Groceries index9597100
Health care index9687100
Housing index12073100
Transportation index9592100
Utilities index103104100
A general overview of the cost of living index for Madison, AL is displayed above. In Madison, AL, the overall cost of living index is 107, which is 19% higher than the Alabama average and 7% higher 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 Madison, AL, the city's goods and services are 8% higher than the Alabama average and 4% higher than the U.S. average.

Did you know?

  • The cost of living in Madison is 19% higher than the Alabama average.
  • The cost of living in Madison is 7% higher than the national average.
  • The cost of housing in Madison is 20% higher 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

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Groceries index
Health care index
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The salary calculator allows you to compare how much your current salary in Madison, AL would be worth in another city. In other words, the salary calculator will adjust the figure you enter for cost of living so that you can determine how much more or much less you would need to earn while maintaining your current quality of living. If you are considering relocating to a more expensive city than Madison, AL, the calculator will tell you how much more you need to earn so you can assess job offers more accurately. The Madison, AL salary calculator is easy to use. All you do is enter the name of another city, then move the slider to your current income. After that, the salary calculator will crunch the numbers for you and give you the information you need about the place you are considering going. Additionally, it will show a detailed breakdown of the cost of living.

Median Income & Debt-To-Income Ratio

Median IncomePer YearPer MonthMax Budget (28% DTI)Max Budget (36% DTI)
Owners$114,942$9,579$2,682$3,449
Renters$44,250$3,688$1,032$1,328
One can approximate the cost of living and the housing affordability in Madison, AL by the percentage of a person’s income that he or she spends on the monthly housing, otherwise known as the debt-to-income ratio (DTI). To stay on the safe side and keep one’s head above the water, a consumer should never spend more than 28 percent of his or her gross income on housing-related expenses and costs and not more than 36 percent of income on all expenses and debts. Homeowners in Madison, AL have a median income of $114,942. Therefore, the amount that a consumer should spend on housing costs should be no more than $2,682 per month to avoid calamity and poverty. The renters in the city have an income of about $44,250, which would make their monthly maximum allowable rental costs $1,032.

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 Madison, 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

ItemMadisonNational avg.Difference
Haircut $18.14$15.5616.5%
Beauty Salon $36.16$36.110.1%
Toothpaste $1.86$2.4724.9%
Shampoo $0.85$0.9612.3%
Movie $9.95$10.131.7%
Bowling $4.99$4.745.4%

Groceries

ItemMadisonNational avg.Difference
Ground Beef $4.32$3.988.5%
Fried Chicken $1.24$1.4111.9%
Milk $1.71$2.0617.0%
Potatoes $3.64$2.9822.2%
Pizza $11.66$9.4723.0%
Beer $7.88$8.7910.4%

Health Care

ItemMadisonNational avg.Difference
Optometrist $115.84$101.0414.6%
Doctor $78.89$107.4426.6%
Dentist $94.90$90.425.0%
Ibuprofen $8.10$9.2812.7%
Lipitor $448.58$426.505.2%

Housing

ItemMadisonNational avg.Difference
Home Price $231,700.00$175,700.0031.9%
Avg. Mortgage Payment $751.51$1,133.2333.7%
Apartment Rent $857.00$920.006.8%

Transportation

ItemMadisonNational avg.Difference
Gasoline $1.86$1.996.8%
Tire Balancing $45.62$45.760.3%

Utilities

ItemMadisonNational avg.Difference
All Electricity$147.70$163.819.8%
Phone $34.33$28.3920.9%
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.
Decatur, AL55,64187-13%
Triana, AL49992-8%
Hazel Green, AL3,27293-7%
Athens, AL23,33590-10%
Huntsville, AL184,13297-3%
Madison, AL44,8661077%

Cities with similar population

City, StatePopulationCost of Living IndexNational Avg.
North Highlands, CA44,8991033%
West Seneca, NY44,90287-13%
Barnstable Town, MA44,75013333%
Summerville, SC44,7171055%
Draper, UT44,65612222%
Madison, AL44,8661077%
Source: The Madison, AL cost of living data displayed above is derived from the Council for Community and Economic Research (C2ER) for the fourth quarter of 2016.