Alabama by the numbers
In Alabama, the median worker earns $43,830 a year, the typical home is worth $195,100 and carries $738 of property tax, and the average household pays $185 a month for electricity at 16.77¢ per kilowatt-hour.
South Southeast (non-RTO) / TVA Regulated monopoly
Energy
Alabama is one of the more balanced generation states in the country. Alabama Power operates a large hydro system on the Coosa and Tallapoosa rivers, shares in nuclear generation, runs modern combined-cycle gas plants, and retains some coal. TVA serves the north of the state from its own diversified fleet. That mix means no single fuel price dominates the bill.
The state's rate sits slightly below the national average and has moved modestly. Alabama Power's rates are adjusted through a set of formula mechanisms rather than periodic full rate cases, which produces smaller, more frequent changes and a smoother path than states that litigate large cases every few years.
Summer cooling load is high, and the state's residential usage per household is among the highest in the country, so an average-looking rate still produces a large bill.
Averaged across the twelve months to May 2026, Alabama households used 1,128 kilowatt-hours a month and paid $185. At the state median wage that is about 8.8 hours of work a month to keep the lights on. For heating, a heat pump costs less to run than gas here, by about $3.59 per million BTU.
Work and pay
The median Alabama worker earned $43,830 in 2024, 11.5% below the national median. What distinguishes a state's labour market is rarely its biggest occupations, which are retail and food service everywhere, but what it has disproportionately.
| Occupation | Concentration | Median pay |
|---|---|---|
| Logging Equipment Operators | 6.38× | $48,990 |
| Aerospace Engineers | 6× | $133,080 |
| Furnace, Kiln, Oven, Drier, and Kettle Operators and Tenders | 5.02× | $49,010 |
| Meat, Poultry, and Fish Cutters and Trimmers | 5× | $28,380 |
| Rolling Machine Setters, Operators, and Tenders, Metal and Plastic | 4.9× | $50,950 |
Property tax
The median Alabama homeowner pays $738 a year on a home worth $195,100, an effective rate of 0.38% against a national 0.98%. Nobody sets that rate. It is what falls out of county, city, school district and special district levies applied to an assessed value, so the state figure is a weighted average of 67 counties rather than a posted number.
Cost of living
Prices in Alabama run at 88.8 where the national average is 100, ranking it #45 of 51. Goods sit at 96.4, which is close to national almost everywhere because most goods are shipped and priced nationally. Rents sit at 61.8, and that is where states actually separate from one another. A median wage of $43,830 therefore buys what $49,358 buys nationally.
Metro areas priced separately: Daphne-Fairhope-Foley (94.7) , Huntsville (93.1) , Birmingham (91.6) , Montgomery (89.7) , Columbus (89.3) .
Housing
House prices in Alabama rose 2.8% over the year to 2026 Q2, against a median across all states of +2.7%. Over ten years the index is +94.3%. Prices are at or near their record level.
Metro areas tracked here: Birmingham (+0.8%) .
Who supplies the power
42 utilities report residential service in Alabama, together serving 2.3 million customers. Regulated monopoly.
Alabama: common questions
What does it cost to live in Alabama?
Prices overall run at 88.8 against a national average of 100, with rents at 61.8. The typical home is worth $195,100 and carries $738 a year in property tax, an effective rate of 0.38% against a national 0.98%. Electricity averages $185 a month at 16.77¢ per kilowatt-hour. Against that, the median wage is $43,830.
What is the property tax rate in Alabama?
The effective rate is 0.38% of home value, from a median bill of $738. It is set locally rather than by the state, so the figure is a weighted outcome across 67 counties. County by county rates.
Does a salary go further in Alabama?
The median wage of $43,830 buys what $49,358 buys nationally, once local prices are taken out. A state paying above the national median while charging above it for housing can leave a household no better off, and this is the arithmetic that shows which side of that line Alabama falls on.
Is Alabama expensive for electricity?
It ranks #24 of 51 jurisdictions on price at 16.77¢ per kilowatt-hour, -9.1% against the U.S. average. On the actual bill it ranks 4 of 51, because households there use 1,128 kWh a month against a national 871.
What is the median salary in Alabama?
$43,830 across all occupations, about $21.07 an hour, covering 2,091,480 wage and salary workers as of 2024.
Who supplies electricity in Alabama?
42 utilities report residential service, the largest being Alabama Power Co with 1.3 million customers. Regulated monopoly.
Electricity May 2026, gas 2024, utilities 2024, wages 2024. All figures from federal statistical agencies. Methodology · Sources