City comparison
Memphis, TN vs Montgomery, AL
What a paycheck is really worth in each city: prices, rent, state taxes and federal GS pay.
Key findings
- Prices in Memphis, TN are 2.8% higher than in Montgomery, AL. Someone earning $100,000 in Montgomery, AL would need about $102,800 in Memphis, TN to live the same way.
- Rent is the bigger story: a typical 1-bedroom costs $1,154 a month in Memphis, TN versus $870 in Montgomery, AL. On $100,000, that's 17% of take-home pay in Memphis, TN and 14% in Montgomery, AL.
- On $100,000, estimated state income tax is about $4,735 a year higher in Montgomery, AL than in Memphis, TN.
- Both cities are in the same federal pay area (Rest of U.S.), so a GS-13 step 1 earns $106,437 in either. A transfer from Memphis, TN to Montgomery, AL changes real buying power by +2.8%, purely from prices.
- Memphis, TN: price level 92.2 (cheaper)
- Montgomery, AL: price level 89.7 (much cheaper)
Map drawn from Census Bureau state boundaries and metro locations9,10; dot colours show BEA price levels2.
Side by side
| Memphis, TN | Montgomery, AL | |
|---|---|---|
| Price level (U.S. = 100)2 | 92.2 | 89.7 |
| $100,000 is worth, in the other city2 | $97,291 in Montgomery | $102,784 in Memphis |
| Typical 1-bedroom rent3 | $1,154/mo | $870/mo |
| Take-home on $100,00014,15,8 | $79,180 | $74,445 |
| State income tax on $100,000 (estimate)8 | $0 (TN) | $4,735 (AL) |
| Rent burden on $100,000 | 17% | 14% |
| Median pay, all jobs4 | $46,890 | $44,950 |
| Federal locality pay area7 | Rest of U.S. | Rest of U.S. |
Rent areas: Memphis, TN-MS-AR HUD Metro FMR Area and Montgomery, AL MSA. Metro areas: Memphis, TN-MS-AR and Montgomery, AL.
What costs more or less
| Price level (U.S. = 100) | Memphis | Montgomery |
|---|---|---|
| Housing (rent) | 79.8 | 64.3 |
| Goods | 96.2 | 96.4 |
| Utilities | 74.1 | 84.9 |
| Other services | 95.4 | 96.7 |
| Overall | 92.2 | 89.7 |
Moving with the same $100,000 salary
Memphis, TN → Montgomery, AL
Same pay goes further
Buying power +2.8%; rent takes 14% of take-home; state tax +$4,735/yr.
77 Strong offer
Montgomery, AL → Memphis, TN
Same pay buys less
Buying power −2.7%; rent takes 17% of take-home; state tax −$4,735/yr.
60 Fair offer
Federal employees: GS pay
Both metros are in the Rest of U.S. locality pay area, so GS salaries are identical. The last column shows what a transfer from Memphis, TN to Montgomery, AL at the same grade and step does to real buying power.
| Grade5,2 | Memphis, TN | Montgomery, AL | Real change, Memphis → Montgomery |
|---|---|---|---|
| GS-9 step 1 | $61,722 | $61,722 | +2.8% |
| GS-11 step 1 | $74,678 | $74,678 | +2.8% |
| GS-12 step 1 | $89,508 | $89,508 | +2.8% |
| GS-13 step 1 | $106,437 | $106,437 | +2.8% |
| GS-14 step 1 | $125,776 | $125,776 | +2.8% |
Pay for common jobs
| Median annual pay4 | Memphis, TN | Montgomery, AL | Montgomery pay in Memphis dollars |
|---|---|---|---|
| Information Security Analysts | $97,370 | $113,270 | $116,424 (+19.6%) |
| Software Developers | $125,580 | $110,620 | $113,700 (−9.5%) |
| Accountants and Auditors | $76,960 | $75,040 | $77,129 (+0.2%) |
| Registered Nurses | $81,500 | $79,570 | $81,785 (+0.4%) |
"Not published" means BLS doesn't release an estimate for that job in that metro.