| Index | Madison | Alabama | National |
| Cost of living | 106 | 89 | 100 |
| Groceries | 96 | 96 | 100 |
| Health care | 94 | 95 | 100 |
| Housing | 132 | 74 | 100 |
| Transportation | 92 | 95 | 100 |
| Utilities | 98 | 97 | 100 |
| Lifestyle & Entertainment | 91 | 94 | 100 |
| Household Items | 94 | 96 | 100 |
| Education & Childcare | 97 | 93 | 100 |
Understanding the cost of living in Madison can help future residents assess whether their current financial situation aligns with the expenses they will encounter. It enables them to plan for potential changes in their budget and lifestyle. The Madison cost of living index is 106, which is 6% higher than the national average. The cost of living index is calculated by taking into account multiple categories, which encompass both the cost of everyday expenditures and larger expenses as well.
The cost of living in Madison closely mirrors the national average in comparison to other cities nationwide. Essential items such as groceries, houshold expenses, health care and utilities are priced at a level consistent with similar urban areas. This means that residents of Madison can anticipate that their daily expenses will remain reasonably in line with those of an average city, contributing to a manageable cost of living.
Housing costs make up a big chunk of the cost of living in Madison, and they usually eat into a large part of your take-home pay. Unfortunately, in this area, both buying a home and renting one costs 32.4% more than the average city. This includes stuff like home prices, rent, mortgage rates, and insurance.
When it comes to knowing a city, its residents are the experts. We conducted a survey with 15 locals to understand their opinions on the cost of living in Madison. The results indicated that 33% found it reasonably priced with decreasing prices of goods and services, while 67% viewed it as quite expensive, with increasing prices.
Wondering if Madison is affordable? It's a question that often comes up when you're thinking about a new city since affordability can really shape your decisions. The cost of living index (covered earlier), housing expenses and income levels all play a part in the affordability equation. In Madison, for example, the median home price is 45.6% higher than what folks pay nationally, and monthly rent is 1.6% higher than the usual rates. Plus, income levels matter too, with Madison boasting a median household income of $139,808, which is 71.9% higher than the national average.
Healthcare: The costs associated with healthcare and insurance premiums can exhibit notable disparities based on the city or state of residence. Access to healthcare facilities, out-of-pocket expenses for medical appointments, dental care charges, prescription medication costs and specialized medical care expenses all contribute to variations in the cost of living. In Madison, healthcare costs are 5.6% lower than the national average.
Taxes: Areas with higher taxes, including sales taxes and income taxes, can contribute to a higher cost of living. Paying more tax for everyday household expenses like clothing and food will result in higher costs, as will paying a higher rate of income tax. The general sales tax rate in Madison starts at 4% and the income tax rates start at 2%.
Groceries: The costs associated with groceries have witnessed substantial increases over the past 2-3 years. In select markets, food prices have escalated by more than 20% during this timeframe, whereas others have seen more restrained upticks. The variances in food expenses can exert a considerable influence on the overall cost of living in a given locale. In Madison, the groceries index is 4% lower than the national average.
The cost of living estimates displayed for Madison are modeled using a U.S. average baseline of 100, helping provide a useful comparison of local living expenses. Housing calculations include U.S. Census home price and rental data, while all other values are AI-assisted estimates based on regional cost patterns, climate, transportation, and everyday spending expectations. These values are intended for directional comparisons across cities.
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| Educare index |
| Median Income | Per Year | Per Month | Max Budget (28% DTI) | Max Budget (36% DTI) |
| Owners | $179,978 | $14,998 | $4,199 | $5,400 |
| Renters | $71,312 | $5,943 | $1,664 | $2,140 |
| State | General Sales Tax | With Max Surtax |
| Alabama | 4% | 13.5% |
| State | Income Tax (Low) | Income Tax (High) |
| Alabama | 2% | 5% |
| City | Population | Cost of Living Index | National Avg. |
| Decatur, AL | 55,434 | 89 | 10.7% |
| Hazel Green, AL | 3,737 | 90 | 9.8% |
| Triana, AL | 2,374 | 91 | 9.0% |
| Athens, AL | 27,586 | 93 | 7.5% |
| Moores Mill, AL | 5,465 | 94 | 5.8% |
| Madison, AL | 52,584 | 106 | 5.9% |
| City | Population | Cost of Living Index | National Avg. |
| Florissant, MO | 52,517 | 89 | 11.2% |
| Wylie, TX | 52,661 | 113 | 13.3% |
| Lacey, WA | 52,421 | 122 | 22.5% |
| Châteauguay, QC | 52,776 | n/a | |
| Smyrna, TN | 52,802 | 103 | 3.0% |
| Madison, AL | 52,584 | 106 | 5.9% |
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