Alabama vs Texas: Tax & Cost of Living Comparison
A comprehensive side-by-side comparison of taxes, cost of living, housing, income, and insurance costs between Alabama and Texas.
State 1
Alabama
AL
State 2
Texas
TX
No Income Tax State
Texas has no state income tax, which can mean significant savings for residents compared to Alabama (5.00% top rate).
| Category | Alabama | Texas |
|---|---|---|
| Income Tax Rate | 5.00% | No Income TaxBetter |
| Property Tax Rate | 0.37%Better | 1.68% |
| Property Tax (on Median Home) | $777/yrBetter | $5,040/yr |
| Sales Tax Rate | 4.00%Better | 6.25% |
| Cost of Living Index | 89Better | 93 |
| Median Home Price | $210,000Better | $300,000 |
| Median Household Income | $56,500 | $67,700Better |
| Avg. Auto Insurance | $1,560/yrBetter | $2,100/yr |
| Avg. Home Insurance | $1,850/yrBetter | $2,700/yr |
Cost of Living Comparison
Index relative to national average (100)
Median Home Price
Alabama
$210,000
Property Tax: $777/yr
Texas
$300,000
Property Tax: $5,040/yr
Alabama homes are 30.0% cheaper than Texas homes.
Median Household Income
Alabama
$56,500
Texas
$67,700
Texas households earn $11,200 more per year on average.
Insurance Costs
| Type | Alabama | Texas | Difference |
|---|---|---|---|
| Auto Insurance | $1,560/yr | $2,100/yr | $540/yr |
| Home Insurance | $1,850/yr | $2,700/yr | $850/yr |
| Total Insurance | $3,410/yr | $4,800/yr | $1,390/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
Texas
23.8
More Affordable
The Bottom Line
Alabama offers lower property tax, lower sales tax, lower cost of living, more affordable housing compared to Texas. Meanwhile, Texas offers lower income tax, higher median income. Overall, Texas edges ahead in our weighted financial comparison.
Alabama Advantages
- +Lower property tax
- +Lower sales tax
- +Lower cost of living
- +More affordable housing
Texas Advantages
- +Lower income tax
- +Higher median income