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 Pelham, AL is displayed above for your reference. Residents in Pelham, AL enjoy a cost of living index of 94. This index is 5% higher than the Alabama average, and 6% 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 Pelham, AL, the average cost of goods and services is 5% lower than it is in Alabama, and it is 8% lower than the national average.
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The cost of living in Pelham is 5% higher than the Alabama average.
The cost of living in Pelham is 6% lower than the national average.
The cost of housing in Pelham is 4% 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.
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
The salary calculator allows you to compare how much your current salary in Pelham, AL would be worth in another city. In other words, the salary calculator will adjust the figure you enter for cost of living so that you can determine how much more or much less you would need to earn while maintaining your current quality of living. If you are considering relocating to a more expensive city than Pelham, AL, the calculator will tell you how much more you need to earn so you can assess job offers more accurately. The Pelham, AL salary calculator is easy to use. All you do is enter the name of another city, then move the slider to your current income. After that, the salary calculator will crunch the numbers for you and give you the information you need about the place you are considering going. Additionally, it will show a detailed breakdown of the cost of living.
Median Income & Debt-To-Income Ratio
Max Budget (28% DTI)
Max Budget (36% DTI)
The affordability of the housing market in Pelham, AL as well as the overall cost of living can be indicated accurately by what percent of the monthly income is spent on housing related costs. This is konwn as the debt-to-income ratio (DTI). The overall rule of thumb is that no more than 28% of your gross income should ever be used on the overall costs related to housing and no more than 36% of gross income on all expenses and debts. Among Pelham, AL homeowners, the median income is $79,189. This indicates that a monthly maximum of $1,848 should be spent by homeowners on all housing related costs. Renters have a median income of $46,391. This indicates that renters should have a maximum of $1,082 used for their rent related monthly costs.
Alabama Sales Tax
General Sales Tax
With Max Surtax
Alabama Income Tax
Income Tax (Low)
Income Tax (High)
The Alabama sales tax and Alabama income tax rates should definitely be considered when determining the overall cost of living in Pelham, AL. Sales taxes are taxes that are imposed onto goods and services sold. Sales taxes do vary by state and can range from no tax at all to upwards of 7%. The Alabama sales tax is 4% and the maximum surtax is 13.5%. Income tax is the tax imposed on income by the government. The income tax rates will vary by state and will also increase or decrease depending on the corresponding tax bracket. State income tax rates can range from anywhere from no tax at all to more than 9%. The Alabama income tax rates range from 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.