Average Salary in Alabama (2025)

Understanding the average salary in Alabama (2025) is important for local workers businesses and for anyone planning to move to the state. Alabama located in the Southeastern US offers one of the lower costs of living in America which makes salaries go further compared to expensive states. However its wages are also lower than the national averages showing the balance between affordability and earnings.

In this detailed guide we’ll cover salary data industry wise wages minimum wage comparisons salary trends 2025 and also how cost of living vs salary impacts life in Alabama.

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Average Salary in Alabama: An Overview

In 2025 the average salary in Alabama is about $52000 per year (roughly $4330 per month). This is slightly below the US average salary of $63000 but the living costs make up a big difference.

• Median Salary: $47000 / year
• Top 10% Earners: More than $100000 / year
• Entry Level Workers: Around $28000 – $32000 / year

So while the pay is modest compared to California or New York everyday life in Alabama is cheaper and in many ways easier.

👉 For national perspective see our Average Salary in USA (2025) guide.

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Industry Wise Salary Breakdown in Alabama (2025)

Salaries in Alabama vary depending on the industry but here’s a closer look at 2025 figures

• Healthcare (Doctors Nurses Therapists) $60000 to $120000 / year
• Technology & IT $70000 to $110000 / year
• Engineering & Manufacturing $65000 to $95000 / year
• Education (Teachers Professors) $42000 to $60000 / year
• Finance & Business Services $55000 to $90000 / year
• Hospitality & Retail $28000 to $38000 / year

Healthcare and manufacturing dominate Alabama’s economy while tech salaries are rising but still far below Silicon Valley levels.

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Minimum Wage in Alabama (2025)

Alabama is one of the few US states that does not have its own minimum wage law. Because of this the federal minimum wage of $7.25/hour applies in 2025.

This is quite low compared to states like California ($16/hr) or New York ($15/hr). Many workers in hospitality and retail earn close to this figure which impacts household earnings. Still since housing food and utilities cost less here it feels a little more manageable day to day.

🔗 Looking beyond Alabama? Read about the Average Salary in Alaska (2025).

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Cost of Living vs Salary in Alabama

One of Alabama’s key benefits is its lower cost of living which helps make wages stretch further.

• Housing: The median home price in 2025 is around $220000 well below the US median.
• Rent: A one bedroom apartment averages $950/month in Birmingham and even less in smaller towns.
• Groceries & Utilities: Around 10 to 15% cheaper than the national benchmark.

For example earning $52000/year in Alabama can feel similar to making $65000 to $70000/year in states with higher costs. Huntsville however is getting more expensive as demand grows due to aerospace and tech industries.

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Salary Trends in Alabama (2025)

Looking ahead Alabama’s wages in 2025 are showing some clear patterns

• Technology & Aerospace (Huntsville hub) salaries rising strongly due to NASA and defense contracts
• Healthcare & Nursing increasing demand pushes salaries upward
• Manufacturing stable with slight growth from automotive plants
• Retail & Hospitality stagnant wages still hovering near minimum

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How Alabama Salaries Compare to National Averages

When compared with national numbers Alabama wages are smaller but the value is higher after cost adjustments.

• A tech worker making $80000 in Alabama enjoys a similar lifestyle to someone earning about $110000 in California.
• Healthcare salaries are lower than the US average but still competitive given living costs.

On a global scale salaries in Alabama remain higher than those in developing economies attracting international students and workers.

👉 For national perspective see our Average Salary in USA (2025) guide.

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Conclusion

To sum it up the average salary in Alabama (2025) stands at around $52000 per year. It is less than the US average but compensated by the state’s low cost of living. Industries like healthcare tech and manufacturing are strong while retail and hospitality remain challenged by the minimum wage ceiling.

For workers businesses and expats knowing the relationship between average wage in Alabama minimum wage rules and cost of living is crucial to making smart career or relocation choices.

👉 For a full comparison, visit our Average Salary Worldwide (2025) guide.