Quality of Life

Alabama vs Arizona: Cost of Living

Alabama is cheaper overall by 14.5 cost-of-living points, but Alabama has lower median home values.

Alabama

AL · South

Winner

88.6

Composite cost of living index (100 = national average). Lower = more affordable.

Arizona

AZ · West

103.1

Composite cost of living index (100 = national average). Lower = more affordable.

Visual comparison

Alabama88.6

Arizona103.1

Difference: 14.5 points — Alabama leads.

National Rankings

Where They Rank Nationally

See where both states fall among all 50 states for cost of living.

Alabama #5 · 88.6

Arizona #29 · 103.1

Best Worst

10 Best States — Cost of Living

Lower is better

West Virginia

83.6

Mississippi

85.5

Arkansas

87.6

Kentucky

88.0

Alabama

88.6

Oklahoma

88.6

Missouri

90.0

Kansas

90.2

Iowa

91.0

#10

Ohio

91.0

Selected states

#29

Arizona

103.1

Alabama ranks 5th and Arizona ranks 29th nationally for cost of living.

Overview

Cost of Living in context

A fast-reading view of the tradeoffs behind the raw cost numbers.

Overall

Alabama feels cheaper overall

Alabama has the lower cost-of-living index, beating Arizona by 14.5 points on the overall affordability baseline.

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Housing

pay about 1.9x more for a home

Alabama has the lower median home value, while buying in Arizona costs materially more at the median.

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Rent Pressure

Alabama puts less pressure on a median paycheck

Median rent takes a smaller share of household income in Alabama than in Arizona, which makes monthly budgeting easier.

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Taxes

Arizona keeps more income after state tax

Arizona has the lower top state income tax rate, which softens the total cost picture even when prices are close.

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Cost stack

Alabama

Overall affordability

Cost of living index: 88.6
Regional price parity: 87.2
Regular gas price: $3.840/gal
Electricity price: 16.06 c/kWh

Housing

Median gross rent: $925/mo
Median home value: $174,600
Owner costs w/ mortgage: $1,500/mo
Owner costs w/o mortgage: $469/mo

Taxes

State income tax: 5.00%
State sales tax: 4.00%
Property tax: 0.38%

Income

Median household income: $54,943
Income after median rent: $3,654
Minimum wage: $7.25/hr

Laws

Gun laws: Permissive
Alcohol system: Control State
Marijuana status: Medical

Arizona

Overall affordability

Cost of living index: 103.1
Regional price parity: 99.2
Regular gas price: $4.742/gal
Electricity price: 15.61 c/kWh

Housing

Median gross rent: $1,311/mo
Median home value: $327,400
Owner costs w/ mortgage: $1,893/mo
Owner costs w/o mortgage: $560/mo

Taxes

State income tax: 2.50%
State sales tax: 5.60%
Property tax: 0.48%

Income

Median household income: $72,581
Income after median rent: $4,737
Minimum wage: $14.35/hr

Laws

Gun laws: Permissive
Alcohol system: License State
Marijuana status: Legal

What stands out

Alabama has lower median home values.
Alabama has the lower overall cost index.
Arizona has the higher median household income.
Alabama looks more attainable on home value to income ratio.

Affordability ratios

Owner costs to income

Alabama: 14.8%

Arizona: 16.6%

What this means