What is the average salary in Alabama?

1 min readLast updated December 7, 2023by Kate Morgan

From the average salaries by age to what makes a good salary, this article will take you through what you need to know about the average salaries in Alabama.

Want to make your salary go further?

A financial advisor can help you develop a financial plan to meet your goals.

Summary

  • The median income in Alabama is $47,385. The median income for those aged 45 to 64 years old is $56,828, and for those 65 and older, it is $39,986. 

  • The average salary in Hoover is over $76,000, while in Birmingham, it is just over $30,000.

  • Shelby is Alabama’s highest-earning county, with the average salary standing at nearly $79,000.

  • The average hourly salary in Alabama is $22.06.

What is the average salary in Alabama by age? 

Alongside location and occupation, salaries in Alabama are also dependent on age since more senior workers will be paid more. Then, when they retire, their income will dip again as they will rely on retirement savings, pensions and other forms of set income. You can also check out the complete guide to retirement in Alabama here.

The Census Bureau data finds that the median income for householders under 25 is $29,240; for householders aged 25 to 44 years old, it is $54,740; for those aged 45 to 64 years old, it is $56,828; and for those 65 and older it is $39,986. 

What is the average salary in Alabama by city?

City living is often more expensive than living in more rural areas, but it’s also where the money is. Alabama’s own cities can vary in average salary; cities like Hoover command above $75,000, while Birmingham’s average is less than half that.

The US Census Bureau’s latest American Community Survey has calculated the average earnings for the largest cities in Alabama, which you can find ranked below.

CityAverage household income
Hoover $76,469
Hunstville $49,060
Montgomery $43,535
Decatur $42,867
Dothan $42,026
Mobile $39,241
Tuscaloosa $38,762
Auburn $37,406
Birmingham $31,217

Average earnings by city — or any other geographical metric — is just one way of calculating wealth and certainly shouldn’t be the only way you look at your own earning potential in a given place. It doesn’t take into account the type of jobs that people do to earn above or below this average bracket and omits any consideration for the number of people living in a household. However, it’s certainly one way of establishing which place offers good earning opportunities.

What is the average salary in Alabama by county?

Reviewing average salaries in Alabama by city is not necessarily an adequate metric for average salaries across the state, since it’s entirely urban focused. A good idea is to weigh these figures up against the average salary in Alabama by county, as this will take areas outside the main cities into account and offer a broader idea of salary ranges.

The same survey from the US Census Bureau gives further insight this way, with the average household income calculated for each county.

CountyAverage salary
Shelby $78,889
Madison $66,887
Limestone $64,270
St. Clair $62,531
Elmore $62,324
Baldwin $61,756
Autauga $57,982
Coffee $56,799
Jefferson $55,088
Tuscaloosa $54,283

What are the highest paying jobs in Alabama?

There’s another weighty factor that will influence how much you earn if you live in Alabama: your job type. Average salaries for various sectors and job roles can vary massively across the state, so it’s absolutely something to consider when looking at salaries by location.

SoFi Learn has calculated a comprehensive list of annual salaries by occupation area, which you can also find below.  

Occupation Annual mean wage
Management $138,148
Computer & Mathematical $119,872
Legal $117,935
Architecture & Engineering $105,770
Healthcare Practitioners & Technical $105,245
Life, Physical, & Social Science $91,100
Business & Financial Operations $84,198
Arts, Design, Entertainment, Sports, & Media $69,625
Education, Training, & Library $64,168
Construction & Extraction $62,681

What is the average salary in Alabama by hour? 

If Americans work an average of 1,801 hours per year — at 37.5 hours a week — then the average hourly salary in Alabama is $22.06.

Based on these figures, the average monthly income in Alabama amounts to just over $3,300.

What is a ‘good’ salary in Alabama?

The median income in Alabama is $47,385. While salaries in Alabama may not be as high as those in some other states, they still offer a good quality of life. For example, a salary of $75,000 in Birmingham would be considered good as the cost of living in Alabama is lower compared to other states. 

Speak to a financial advisor

Managing your income and how you spend your salary are both huge components of your overall financial plan. How much you spend vs. save now will have a huge impact down the line, especially when it comes to buying a home, sending your kids to college and retiring.

When it comes to these big financial decisions, you don’t have to go it alone. Expert financial advice is on hand. In fact, getting expert advice before you make significant financial decisions can really benefit you in the long term.

Unbiased can help you find your expert financial advisor in as little as 48 hours. Get started today.

Content writer

Kate Morgan

Kate has written for leading publications and blue chip companies over the last 20 years.

Want to make your salary go further?

A financial advisor can help you develop a financial plan to meet your goals.