Overall
Alabama feels cheaper overall
Alabama has the lower cost-of-living index, beating Texas by 5.7 points on the overall affordability baseline.
See full data →
Quality of Life
Alabama vs Texas: Cost of Living
Alabama is cheaper overall by 5.7 cost-of-living points, but Texas has no state income tax, but Alabama has lower median home values.
National Rankings
Where They Rank Nationally
See where both states fall among all 50 states for cost of living.
Alabama
#5 · 88.6
Texas
#18 · 94.3
Best
Worst
10 Best States — Cost of Living
Lower is better
#1
West Virginia
83.6
West Virginia
#2
Mississippi
85.5
Mississippi
#3
Arkansas
87.6
Arkansas
#4
Kentucky
88.0
Kentucky
#5
Alabama
88.6
Alabama
#6
Oklahoma
88.6
Oklahoma
#7
Missouri
90.0
Missouri
#8
Kansas
90.2
Kansas
#9
Iowa
91.0
Iowa
#10
Ohio
91.0
Ohio
Selected states
#18
Texas
94.3
Texas
Alabama ranks 5th and Texas ranks 18th nationally for cost of living.
Overview
Cost of Living in context
A fast-reading view of the tradeoffs behind the raw cost numbers.
Housing
pay about 1.7x more for a home
Alabama has the lower median home value, while buying in Texas costs materially more at the median.
See full data →Rent Pressure
Alabama puts less pressure on a median paycheck
Median rent takes a smaller share of household income in Alabama than in Texas, which makes monthly budgeting easier.
See full data →Taxes
Texas has no state income tax
Texas gives residents a cleaner paycheck-level tax advantage, while Alabama still taxes income at the state level.
See full data →Cost stack
AlabamaOverall 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
TexasOverall affordability
- Cost of living index
- 94.3
- Regional price parity
- 97.2
- Regular gas price
- $3.824/gal
- Electricity price
- 15.69 c/kWh
Housing
- Median gross rent
- $1,232/mo
- Median home value
- $294,400
- Owner costs w/ mortgage
- $2,211/mo
- Owner costs w/o mortgage
- $703/mo
Taxes
- State income tax
- None (0%)
- State sales tax
- 6.25%
- Property tax
- 1.49%
Income
- Median household income
- $66,963
- Income after median rent
- $4,348
- Minimum wage
- $7.25/hr
Laws
- Gun laws
- Permissive
- Alcohol system
- License State
- Marijuana status
- Medical
What stands out
- Alabama has lower median home values.
- Texas has no state income tax.
- Alabama has the lower overall cost index.
- Texas has the higher median household income.
Affordability ratios
Home value to income
Alabama: 3.18x
Texas: 4.40x
Rent to income
Alabama: 20.2%
Texas: 22.1%
Owner costs to income
Alabama: 14.8%
Texas: 18.0%
Related pages
What this means
Alabama vs Texas: Cost of Living in context
Alabama's cost of living is 88.6, compared with 94.3 in Texas. Composite cost of living index (100 = national average). Lower = more affordable.
Alabama
88.6
Texas
94.3
Difference
5.7 points
People also ask
Alabama vs Texas Cost of Living — common questions
QWhat is Alabama's cost of living?
Alabama's cost of living is 88.6.
QWhat is Texas's cost of living?
Texas's cost of living is 94.3.
QWhich state has a lower cost of living — Alabama or Texas?
Alabama is cheaper overall by 5.7 cost-of-living points, but Texas has no state income tax, but Alabama has lower median home values.
More comparisons: Alabama vs Texas
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Data source and freshness
Data period
2026 incorporated quarterly release
Dataset reviewed
July 23, 2026
Method note
Composite index where 100 equals the national average.