Overall
Alabama feels cheaper overall
Alabama has the lower cost-of-living index, beating Texas by 5.7 points on the overall affordability baseline.
View detailed comparison
Cost of Living Comparison
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
A fast-reading view of the tradeoffs behind the raw cost numbers.
Living Costs
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.
View detailed comparisonRent 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.
View detailed comparisonTaxes
Texas has no state income tax
Texas gives residents a cleaner paycheck-level tax advantage, while Alabama still taxes income at the state level.
View detailed comparisonCost 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 with mortgage
-
Owner costs without mortgage
-
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
Texas
Overall 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 with mortgage
-
Owner costs without mortgage
-
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
Related Pages
What This Means
Alabama vs Texas: Cost of Living in context
Alabama has a cost of living of 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
Q What is Alabama's cost of living?
Alabama's cost of living is 88.6.
Q What is Texas's cost of living?
Texas's cost of living is 94.3.
Q Which 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
Grouped tabs keep the deep-dive links tighter and easier to scan.
Explore Each State
Alabama Symbols
Texas Symbols
Sources: Core demographic data comes from the 2020 U.S. Census, with land area from U.S. Census Bureau TIGER files. Income, housing, affordability, and tax fields are maintained in our comparison dataset; purchasing-power figures use BEA Regional Price Parities. Minimum wage data comes from the U.S. Department of Labor, gas prices from AAA, and electricity rates from the U.S. Energy Information Administration. Political control and election fields use 2024 presidential results together with National Conference of State Legislatures data. Gun-law labels use the Giffords scorecard, alcohol system data comes from NABCA, and marijuana status uses NCSL's state cannabis laws tracker.