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Alabama cost of living & income (2026)

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.

COL index85100 = US baseline
Est. annual COL$42,500
Median HH income$66,659
Sales tax (comb.)9.46%
Gas (87 octane)$3.571/galJune 2026 AAA
Largest cityHuntsville (225,564)

Taxes & economy

Income tax: Graduated 2%–5%

Sales tax: 4% state (combined avg. ~9.46%)

Major industries: Automotive, aerospace/defense, agriculture, steel, forestry

Climate snapshot

Summer high ~91°F (July) · Winter low ~34°F (January)

Culture (context)

Birmingham Civil Rights Institute / Edmund Pettus Bridge area

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FAQ

What is Alabama's cost of living index?

Alabama's cost-of-living index is 85 (national baseline 100) in this 2026 classroom snapshot.

What is the estimated annual cost of living in Alabama?

The explorer lists an illustrative estimated annual cost of living of about $42,500 for Alabama.

What is median household income in Alabama?

Median household income in Alabama is $66,659 in this dataset.

What is the combined average sales tax rate in Alabama?

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.

Does Alabama have a state income tax?

State income tax in Alabama: Graduated 2%–5%.

What was regular gas in Alabama in this snapshot?

87-octane gas is listed at $3.571 per gallon (AAA, June 2026) in the explorer data.

Sources on the hub: Tax Foundation (sales tax), BEA / ACS (income & COL), AAA gas (June 20, 2026). Educational snapshot — not relocation or tax advice.