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.
An overview of the general cost of living index for Hamilton, AL is displayed above for your reference. Residents in Hamilton, AL enjoy a cost of living index of 75. This index is 16% lower than the Alabama average, and 25% lower than the national average. The following categories are used when determining the cost of living index for any given city: health care (5%), transportation (9%), utilities (10%), groceries (13%), housing (30%), and goods/services (33%). Clearly, housing and goods/services make up the majority of the formula for calculating the cost of living index. Because of this, the general cost of living for any given area can be estimated by looking at the cost of everyday goods in that area. For those living in Hamilton, AL, the average cost of goods and services is 16% lower than it is in Alabama, and it is 19% lower than the national average.
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Did you know?
The cost of living in Hamilton is 16% lower than the Alabama average.
The cost of living in Hamilton is 25% lower than the national average.
The cost of housing in Hamilton is 46% 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.
Compare Hamilton, AL Cost of living To Other Cities
This is how much you would need to earn in Price difference in compared to
Cost of living index
Goods & Services index
Health care index
Use the salary calculator to compare your current salary in Hamilton, AL to any other city. The salary calculator will tell you how much you would need to earn in any given city to maintain the same standard of living based on the cost of living in each city. For example, if the cost of living in the city you are looking to relocate to is higher than the cost of living in Hamilton, AL, then you would need to earn more income in order to maintain the same standard of living. To use the Hamilton, AL salary calculator, simply enter in the name of the new city, then adjust the slider to your current income. The salary calculator will do the rest and let you know if you need to earn more or less in the new city. You will also see a complete breakdown of the cost of living.
Median Income & Debt-To-Income Ratio
Max Budget (28% DTI)
Max Budget (36% DTI)
One can approximate the cost of living and the housing affordability in Hamilton, 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 Hamilton, AL have a median income of $50,261. Therefore, the amount that a consumer should spend on housing costs should be no more than $1,173 per month to avoid calamity and poverty. The renters in the city have an income of about $21,813, which would make their monthly maximum allowable rental costs $509.
Alabama Sales Tax
General Sales Tax
With Max Surtax
Alabama Income Tax
Income Tax (Low)
Income Tax (High)
For those who live in Hamilton, AL and want to know what the true cost of living is, they ought to look at both the Alabama income tax rate and the Alabama sales tax rate. By sales tax, we mean the taxes that are included whenever a person is purchasing any goods or services. The amount that is taxed depends upon the particular state, where some states have a sales tax of zero percent while others can have a tax higher than seven percent. In Alabama, the sales tax is 4%, while the most you'll pay in surtax is 13.5%. There is also income tax to consider, which is based upon the amount of money made in a year. Just like sales tax, income tax depends upon the particular state but also depends upon what tax bracket the person is in. Income tax for the state can be higher than nine percent in some states to zero percent in others. For those that live in Alabama, the income tax rate ranges between 2% to 5%.
Goods & Services
Avg. Mortgage Payment
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.