50 states · AL
Quick answer: Alabama has a cost-of-living index of 85 (100 = national baseline), an illustrative estimated annual cost of living of about $42,500, median household income of $66,659, combined average sales tax about 9.46%, and regular gas about $3.571/gal in the June 2026 AAA snapshot used on the hub.
Income tax: Graduated 2%–5%
Sales tax: 4% state (combined avg. ~9.46%)
Major industries: Automotive, aerospace/defense, agriculture, steel, forestry
Summer high ~91°F (July) · Winter low ~34°F (January)
Birmingham Civil Rights Institute / Edmund Pettus Bridge area
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What this means for you: a basket priced at 100 on the national baseline is indexed at 85 in Alabama. A salary that buys that basket at the baseline would need about 85% of that salary to buy the same basket here. That is index math from this snapshot, not a tax-equalized offer and not your rent.
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Alabama's cost-of-living index is 85 (national baseline 100) in this 2026 classroom snapshot.
The explorer lists an illustrative estimated annual cost of living of about $42,500 for Alabama.
Median household income in Alabama is $66,659 in this dataset.
The combined average sales tax rate shown for Alabama is 9.46%. State and local rules vary; see the Tax Foundation citation on the hub.
State income tax in Alabama: Graduated 2%–5%.
87-octane gas is listed at $3.571 per gallon (AAA, June 2026) in the explorer data.
The index is 85 against a US baseline of 100. A salary that buys a basket at the baseline would need about 85% of that salary to buy the same basket in Alabama in this snapshot. It is not a tax bill, a rent quote, or financial advice.
Sources: Tax Foundation (sales tax), BEA / ACS (income & COL), AAA gas (June 20, 2026). Educational, not financial, tax, or relocation advice.