Montgomery, AL Cost Of Living

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Montgomery 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.
Index	Montgomery	Alabama	National
Cost of living index	89	89	100
Index	Montgomery	Alabama	National
Goods & Services index	97	98	100
Groceries index	100	96	100
Health care index	83	91	100
Housing index	70	72	100
Transportation index	92	91	100
Utilities index	100	103	100

An overview of the general cost of living index for Montgomery, AL is displayed above for your reference. Residents in Montgomery, AL enjoy a cost of living index of 89. This index is 1% lower than the Alabama average, and 11% 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 Montgomery, AL, the average cost of goods and services is 1% lower than it is in Alabama, and it is 3% lower than the national average.

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The cost of living in Montgomery is 1% lower than the Alabama average.
The cost of living in Montgomery is 11% lower than the national average.
The cost of housing in Montgomery is 30% 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.

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Cost of living index
Goods & Services index
Groceries index
Health care index
Housing index
Transportation index
Utilities index

Use the salary calculator to compare your current salary in Montgomery, 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 Montgomery, AL, then you would need to earn more income in order to maintain the same standard of living. To use the Montgomery, 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

Median Income	Per Year	Per Month	Max Budget (28% DTI)	Max Budget (36% DTI)
Owners	$59,148	$4,929	$1,380	$1,775
Renters	$27,458	$2,288	$641	$824

One can approximate the cost of living and the housing affordability in Montgomery, 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 Montgomery, AL have a median income of $59,148. Therefore, the amount that a consumer should spend on housing costs should be no more than $1,380 per month to avoid calamity and poverty. The renters in the city have an income of about $27,458, which would make their monthly maximum allowable rental costs $641.

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%

When assessing the complete cost of living in Montgomery, AL, the Alabama income tax and the Alabama sales tax percentages should unquestionably be taken into consideration. Sales taxes aren't just levies imposed onto sold goods, but they also include taxes that are charged when services are provided for a fee. The rates are different from state to state and can run has high as 7 percent. Some states have no sales tax at all. The Alabama maximum surtax is 13.5%, and the Alabama sales tax is 4%. By contrast, income tax is an unfortunate obligation that is charged by the government against earnings. Just like sales taxes, the rates for income taxes differ from state to state. They also decrease or increase according to the individual's tax bracket. Tax rates can run as high as 9 percent, with a minimum of zero. Income tax rates range from 2% to 5% in Alabama.

Goods & Services

Item	Montgomery	National avg.	Difference
Haircut	$17.20	$17.49	1.7%
Beauty Salon	$44.60	$38.17	16.8%
Toothpaste	$1.90	$2.32	18.1%
Shampoo	$0.93	$1.01	8.1%
Movie	$8.53	$10.72	20.5%
Bowling	$15.00	$13.86	8.2%

Groceries

Item	Montgomery	National avg.	Difference
Ground Beef	$3.21	$3.90	17.7%
Fried Chicken	$1.41	$1.40	1.0%
Milk	$2.40	$1.96	22.3%
Potatoes	$3.66	$3.18	15.0%
Pizza	$10.89	$10.39	4.8%
Beer	$9.69	$9.23	5.0%

Health Care

Item	Montgomery	National avg.	Difference
Optometrist	$86.00	$106.34	19.1%
Doctor	$94.00	$115.25	18.4%
Dentist	$65.00	$98.38	33.9%
Ibuprofen	$10.60	$9.26	14.5%
Lipitor	$476.07	$466.47	2.1%

Housing

Item	Montgomery	National avg.	Difference
Home Price	$116,600.00	$184,700.00	36.9%
Avg. Mortgage Payment	$1,108.92	$1,273.32	12.9%
Apartment Rent	$827.00	$949.00	12.9%

Transportation

Item	Montgomery	National avg.	Difference
Gasoline	$2.40	$2.59	7.5%
Tire Balancing	$46.59	$48.90	4.7%

Utilities

Item	Montgomery	National avg.	Difference
All Electricity	$168.77	$167.60	0.7%
Phone	$178.98	$163.42	9.5%

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, State	Population	Cost of Living Index	National Avg.
Elmore, AL	1,890	84	-16%
Coosada, AL	1,185	91	-9%
Wetumpka, AL	7,654	91	-9%
Millbrook, AL	15,045	92	-8%
Pine Level, AL	3,918	92	-8%
Montgomery, AL	201,717	89	-11%

Cities with similar population

City, State	Population	Cost of Living Index	National Avg.
Moreno Valley, CA	202,061	116	16%
Aurora, IL	200,907	100	0%
Columbus, GA	200,303	96	-4%
Fayetteville, NC	203,670	91	-9%
Yonkers, NY	199,725	132	32%
Montgomery, AL	201,717	89	-11%

Source: The Montgomery, AL cost of living data displayed above is derived from the Council for Community and Economic Research (C2ER) for 2019.

Montgomery, AL Cost of Living