Cost Of Living in Memphis, AL

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3%

Overall NAT. AVG.

2%

Groceries NAT. AVG.

100%

Housing NAT. AVG.

Date & Last Updated: These cost of living estimates reflect 2026 modeled data using U.S. Census housing inputs and AI-assisted city-level pricing models.

The cost of living index is based on a national average of 100. For example, if the cost of living score is 90, then the estimated cost of living is 10% lower than the national average. If the score is 110, then the estimated cost of living is 10% higher than average. The overall index is calculated using weighted estimates across major everyday expense categories, including housing (30%), groceries (16%), transportation (12%), healthcare (10%), utilities (8%), lifestyle and entertainment (8%), household expenses (8%), and education and childcare (8%). All values are AI-assisted city-level estimates designed for directional comparisons.
Index	Memphis	Alabama	National
Cost of living	97	89	100
Groceries	98	96	100
Health care	94	95	100
Housing	n/a	74	100
Transportation	97	95	100
Utilities	97	97	100
Lifestyle & Entertainment	103	94	100
Household Items	96	96	100
Education & Childcare	99	93	100

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Cost Of Living Quick Facts

The cost of living in Memphis is 10% higher than the Alabama average
The cost of living in Memphis is 3% lower than the national average
Memphis housing is 19% lower than the national average
Alabama general sales tax is 22% lower than the national average
Alabama state income tax is 23% lower than the national average

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Price difference in compared to

Cost of living index
Groceries index
Health care index
Housing index
Transportation index
Utilities index
Lifestyle index
Household index
Educare index

Median Income & Debt-To-Income Ratio

Median Income	Per Year	Per Month	Max Budget (28% DTI)	Max Budget (36% DTI)
Owners	$0	$0	$0	$0
Renters	$0	$0	$0	$0

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%

Nearby cities with low cost of living

City	Population	Cost of Living Index	National Avg.
McMullen, AL	17	97	2.5%
Panola, AL	35	97	2.5%
Aliceville, AL	2,243	83	17.2%
Macon, MS	3,181	83	17.3%
Pickensville, AL	1,015	86	13.5%
Memphis, AL	10	97	2.5%

Cities with similar population

City	Population	Cost of Living Index	National Avg.
Indian Falls, CA	10	118	18.1%
Bolan, IA	10	101	1.0%
Hepburn, IA	10	70	30.4%
Jacksonville, IA	10	97	3.0%
Bassett, KS	10	85	14.8%
Memphis, AL	10	97	2.5%