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Birmingham, AL Cost of Living

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14%
Overall NAT. AVG.
1%
Goods & Services NAT. AVG.
43%
Housing NAT. AVG.
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Date & Last Updated: This data reflects 2022 and was released from C2ER in January, 2022; this is the most current data available.
The cost of living index is based on a national average of 100. For example, if the cost of living is 90, then it is 10% lower than average. If the cost of living is 110, then it is 10% higher than average. The breakdown for each index is as follows: goods & services (33%), groceries (13%), health care (5%), housing (30%), transportation (9%) and utilities (10%). If the cost of living data was unavailable for this city, estimates based upon nearby cities were used.
Index Birmingham Alabama National
Cost of living8688100
Goods & Services10194100
Groceries9698100
Health care9891100
Housing5772100
Transportation9793100
Utilities101101100

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Key findings

  • The cost of living in Birmingham is 2% lower than the Alabama average
  • The cost of living in Birmingham is 14% lower than the national average
  • Birmingham housing is 43% lower than the national average
  • Alabama general sales tax is 21% lower than the national average
  • Alabama state income tax is 19% lower than the national average

Most Affordable Places to Live in and Around Birmingham

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Compare Birmingham, AL Cost of Living

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      The best places in Alabama

      Here are the best places to live in AlabamaSee the best places to live in & around BirminghamThese are the 10 most affordable cities in AlabamaTop 10 cities in Alabama with the best education system

      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

      Median Income & Debt-To-Income Ratio

      Median Income Per Year Per Month Max Budget (28% DTI) Max Budget (36% DTI)
      Owners$45,369$3,781$1,059$1,361
      Renters$22,983$1,915$536$690
      A good indicator of the general affordability of housing in Birmingham, AL, 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 Birmingham, the median monthly income is $45,369 for those who own their own homes. Under the standard rule, that income level would allow for $1,059 to be budgeted for housing expenses each month, at the most. Renters, on the other hand, earn about $22,983, per the median income in the area. That would allow for renters to spend up to $536 on monthly rental expenses.

      Alabama Sales Tax

      State General Sales Tax With Max Surtax
      Alabama 4% 13.5%

      Alabama Income Tax

      State Income Tax (Low) Income Tax (High)
      Alabama 2% 5%

      Goods & Services

      Item Birmingham National avg. Difference
      Haircut $16.36$20.2719.3%
      Beauty Salon $35.78$40.3911.4%
      Toothpaste $2.24$2.364.9%
      Shampoo $0.90$1.0816.4%
      Movie $12.68$10.9915.4%
      Bowling $14.44$15.496.8%

      Groceries

      Item Birmingham National avg. Difference
      Ground Beef $4.55$4.305.9%
      Fried Chicken $1.59$1.4013.6%
      Milk $2.06$2.206.6%
      Potatoes $2.98$3.227.3%
      Pizza $9.72$10.749.5%
      Beer $9.50$9.601.1%

      Health Care

      Item Birmingham National avg. Difference
      Optometrist $92.19$109.7316.0%
      Doctor $89.17$118.3424.7%
      Dentist $121.47$100.9420.3%
      Ibuprofen $8.69$9.9312.5%
      Lipitor $458.85$469.532.3%

      Housing

      Item Birmingham National avg. Difference
      Home Price $87,100.00$184,700.0052.8%
      Avg. Mortgage Payment $1,052.65$1,229.6214.4%
      Apartment Rent $744.00$949.0021.6%

      Transportation

      Item Birmingham National avg. Difference
      Gasoline $2.46$2.719.2%
      Tire Balancing $55.79$51.867.6%

      Utilities

      Item Birmingham National avg. Difference
      All Electricity $176.43$170.843.3%
      Phone $185.19$187.181.1%
      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 Population Cost of Living Index National Avg.
      Cardiff, AL58990.7%
      Mount Olive CDP (Coosa County), AL2758019.5%
      Lipscomb, AL2,4378118.8%
      Mulga, AL9678118.5%
      Brighton, AL2,8688317.1%
      Birmingham, AL212,4248613.5%

      Cities with similar population

      City Population Cost of Living Index National Avg.
      Oakville, ON212,353n/a 
      Spokane, WA212,078990.6%
      Des Moines, IA212,8598514.8%
      Rochester, NY210,2918812.4%
      San Bernardino, CA214,5811065.9%
      Birmingham, AL212,4248613.5%
      Date & Last Updated: This data reflects 2022 and was released from C2ER in January, 2022; this is the most current data available.
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