Economy in Alabama

Alabama is a great place to live for many reasons. It is home to some recognizable companies such as Regions Financial Corporation headquartered in Birmingham and Hibbett Sports based in Birmingham. In addition, the state has lower than average costs of living compared to the rest of the US. An example of this is the average 2 bedroom rent which is $940 compared to the national average of $1,430. Similarly, Alabama's Grocery Cost Index is 94 versus 100 in the US. As a result, Alabama offers good value for money and provides an ideal place to settle down.

Alabama has an unemployment rate of 3.4%. The US average is 6.0%.

Alabama has seen the job market increase by 1.8% over the last year. Future job growth over the next ten years is predicted to be 32.4%, which is lower than the US average of 33.5%.

Tax Rates for Alabama
- The Sales Tax Rate for Alabama is 8.4%. The US average is 7.3%.
- The Income Tax Rate for Alabama is 5.0%. The US average is 4.6%.
- Tax Rates can have a big impact when Comparing Cost of Living.

Income and Salaries for Alabama
- The average income of a Alabama resident is $23,936 a year. The US average is $28,555 a year.
- The Median household income of a Alabama resident is $54,943 a year. The US average is $69,021 a year.