Alabama vs Arizona: Tax & Cost of Living Comparison
A comprehensive side-by-side comparison of taxes, cost of living, housing, income, and insurance costs between Alabama and Arizona.
State 1
Alabama
AL
State 2
Arizona
AZ
| Category | Alabama | Arizona |
|---|---|---|
| Income Tax Rate | 5.00% | 2.50%Better |
| Property Tax Rate | 0.37%Better | 0.62% |
| Property Tax (on Median Home) | $777/yrBetter | $2,449/yr |
| Sales Tax Rate | 4.00%Better | 5.60% |
| Cost of Living Index | 89Better | 103 |
| Median Home Price | $210,000Better | $395,000 |
| Median Household Income | $56,500 | $68,000Better |
| Avg. Auto Insurance | $1,560/yrBetter | $1,860/yr |
| Avg. Home Insurance | $1,850/yrBetter | $1,950/yr |
Cost of Living Comparison
Index relative to national average (100)
Median Home Price
Alabama
$210,000
Property Tax: $777/yr
Arizona
$395,000
Property Tax: $2,449/yr
Alabama homes are 46.8% cheaper than Arizona homes.
Median Household Income
Alabama
$56,500
Arizona
$68,000
Arizona households earn $11,500 more per year on average.
Insurance Costs
| Type | Alabama | Arizona | Difference |
|---|---|---|---|
| Auto Insurance | $1,560/yr | $1,860/yr | $300/yr |
| Home Insurance | $1,850/yr | $1,950/yr | $100/yr |
| Total Insurance | $3,410/yr | $3,810/yr | $400/yr |
Overall Financial Comparison
Weighted score combining income tax, property tax, sales tax, cost of living, housing, insurance, and income. A lower score indicates better overall financial affordability.
Alabama
39.3
Arizona
36.5
More Affordable
The Bottom Line
Alabama offers lower property tax, lower sales tax, lower cost of living, more affordable housing compared to Arizona. Meanwhile, Arizona offers lower income tax, higher median income. Overall, Arizona edges ahead in our weighted financial comparison.
Alabama Advantages
- +Lower property tax
- +Lower sales tax
- +Lower cost of living
- +More affordable housing
Arizona Advantages
- +Lower income tax
- +Higher median income