A comprehensive side-by-side comparison of taxes, cost of living, housing, income, and insurance costs between Alabama and Tennessee.
State 1
AL
State 2
TN
No Income Tax State
Tennessee has no state income tax, which can mean significant savings for residents compared to Alabama (5.00% top rate).
| Category | Alabama | Tennessee |
|---|---|---|
| Income Tax Rate | 5.00% | No Income TaxBetter |
| Property Tax Rate | 0.37%Better | 0.64% |
| Property Tax (on Median Home) | $777/yrBetter | $1,856/yr |
| Sales Tax Rate | 4.00%Better | 7.00% |
| Cost of Living Index | 89Better | 90 |
| Median Home Price | $210,000Better | $290,000 |
| Median Household Income | $56,500 | $59,700Better |
| Avg. Auto Insurance | $1,560/yrBetter | $1,680/yr |
| Avg. Home Insurance | $1,850/yrBetter | $1,900/yr |
Index relative to national average (100)
Alabama
$210,000
Property Tax: $777/yr
Tennessee
$290,000
Property Tax: $1,856/yr
Alabama homes are 27.6% cheaper than Tennessee homes.
Alabama
$56,500
Tennessee
$59,700
Tennessee households earn $3,200 more per year on average.
| Type | Alabama | Tennessee | Difference |
|---|---|---|---|
| Auto Insurance | $1,560/yr | $1,680/yr | $120/yr |
| Home Insurance | $1,850/yr | $1,900/yr | $50/yr |
| Total Insurance | $3,410/yr | $3,580/yr | $170/yr |
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
Tennessee
21.3
More Affordable
Alabama offers lower property tax, lower sales tax, lower cost of living, more affordable housing compared to Tennessee. Meanwhile, Tennessee offers lower income tax, higher median income. Overall, Tennessee edges ahead in our weighted financial comparison.
Alabama Advantages
Tennessee Advantages