Birmingham vs Memphis: cost of living compared
Memphis is about the same as Birmingham overall. Memphis (TN) has no state income tax; AL tops out around 5%.
Indexes use a US average of 100: below 100 is cheaper than the national average. Housing and transportation are derived from median home prices, rents and commute times; figures come from BLS, Census ACS, Numbeo and the MIT Living Wage Calculator.
The big picture
When comparing Birmingham and Memphis, the overall cost of living is remarkably similar. Both metros offer a significantly lower cost of living than the national average. The primary difference in expenses between the two cities is driven by housing costs, which are somewhat lower in Memphis. Other major categories like food, transportation, healthcare, and utilities show very little difference, making housing the key factor for budget-conscious movers.
Housing
Housing is noticeably more affordable in Memphis, whether you are looking to buy a home or rent an apartment. Median home prices are lower there, and typical monthly rents for smaller units are also a bit less. Both cities feature a mix of housing types, from historic homes to newer constructions, often with yards. Property taxes and insurance costs can vary, but the initial purchase price and rent figures present a clear advantage for Memphis.
Taxes and everyday costs
A significant difference in daily spending comes from state income tax; Tennessee has no broad state income tax, while Alabama does. Beyond that, costs for groceries, transportation, healthcare, and utilities are quite comparable between the two cities. Commute times are roughly similar for residents in both metros. This means that while many daily expenses are aligned, the absence of a state income tax in Memphis can lead to more disposable income.
Lifestyle trade-offs
Both Birmingham and Memphis are major Southern cities with distinct characters. Birmingham, nestled in the Appalachian foothills, has a slightly more varied topography and a generally humid subtropical climate. Memphis, situated on the Mississippi River, is flatter and experiences a similar climate with hot, humid summers. Both cities offer diverse cultural attractions and a range of outdoor activities. Getting around primarily relies on personal vehicles in both locations, with public transit options available.
Bottom line
For those weighing a move between Birmingham and Memphis, the overall financial impact is quite similar. The most substantial cost difference lies in housing, which is more economical in Memphis. However, the absence of a state income tax in Tennessee could offer a notable advantage for your take-home pay. Ultimately, your personal budget will see similar costs for most everyday necessities, with housing and state income tax being the primary differentiators.
| Measure | Birmingham, AL | Memphis, TN |
|---|---|---|
| Overall cost of living (US avg = 100) | 78 | 78 |
| Housing index | 58 | 54 |
| Transportation index | 88 | 88 |
| Food index | 85 | 85 |
| Healthcare index | 88 | 88 |
| Utilities index | 92 | 92 |
| Misc index | 75 | 78 |
| Median home price | $198,000 | $178,000 |
| Median 1-bedroom rent | $925/mo | $900/mo |
| Average commute | 25 min | 25 min |
Compare any two metros with the free cost of living tool, or see the true monthly cost of a specific Memphis home with the True Cost Calculator.