Wealth Index
Less wealthy than 88% of states in US
The wealth index reflects the overall economic prosperity and financial well-being of a state's residents based on income levels, employment rates, and income inequality metrics.
Wealthiest and Least Wealthy Counties in Alabama
- Shelby County (114% of U.S. avg)
- Madison County (107% of U.S. avg)
- Baldwin County (101% of U.S. avg)
- Perry County (64% of U.S. avg)
- Greene County (64% of U.S. avg)
- Sumter County (67% of U.S. avg)
Ranked by the Map AI Wealth Index, which combines income, employment, and income inequality metrics.
Income Statistics Overview
| Metric | Alabama | US Average |
|---|---|---|
| Median Household Income | $62,318 | $78,145 |
| Median Personal Income | $53,379 | $61,726 |
| Average income growth | 4.8% | 5.1% |
| Six-Figure Earners | 9.0% | 13.2% |
The median household income in Alabama is about 20% lower than in US. Income has been growing slower in Alabama (4.8%/yr) than in US (5.1%/yr).
About 9% of adults in Alabama earn six figures ($100,000 or more) a year, lower than the US average of 13%.
Median Household Income 2009–2023 Trend
Median Household Income Over Time
Median household income in Alabama grew by 51.0% from 2009 to 2023, reaching $62,318 in 2023. That's an average of about 4.8% per year.
Economic Inequality in Alabama | Gender Pay Gap | Gini Coefficient
| Metric | Alabama | US Average |
|---|---|---|
| Gini Coefficient | 0.572 | 0.570 |
| Male Median Income | $61,248 | $67,746 |
| Female Median Income | $45,616 | $54,793 |
| Gender Pay Gap | 25.5% | 19.1% |
The Gini coefficient measures how evenly income is shared between richer and poorer households, from 0 (everyone earns the same) to 1 (one household earns nearly everything). The lower the number, the more equally income is distributed. In Alabama, it is 0.572, about the same as US's 0.570, so income here is about as evenly distributed as there.
Men's income is about 34% more than women's income in Alabama. Over a 35-year career, a 34% wage gap accumulates to roughly $547,120 in unearned income for female workers in the area.
Income by Sex Over Time
Since 2009, the income gap between men and women in Alabama has narrowed from about 27% to 26% in 2023. In dollar terms, the gap has widened by $4,134 since 2009.
Employment
| Metric | Alabama | US Average |
|---|---|---|
| Unemployment Rate | 4.8% | 5.2% |
| Working from Home | 7.8% | 13.4% |
| Commute time (minutes) | 22 | 22 |
Approximately 112,833 people are unemployed in Alabama.
The average commute time in Alabama is 22 minutes, about the same as in US.
Unemployment Rate Over Time
Since 2011, the unemployment rate in Alabama has fallen from 9.5% to 4.8% in 2023.
Conclusion
Considering all these factors, Alabama has an overall wealth index grade of C, making it about on par with the country as a whole.
Frequently Asked Questions
Common questions about income and wealth in Alabama.
How Wealthy Is Alabama?
Alabama has a wealth index grade of C. The wealth index grades areas from A+ (best) to F- by combining income levels, employment rates, and income inequality; a C grade means residents are close to the U.S. average. The median household income is $62,318, about 20% lower than the US average of $78,145.
What is the current median household income in Alabama?
As of 2023, the median household income in Alabama is $62,318.
What was the median household income in Alabama in 2023?
In 2023, the median household income in Alabama was $62,318.
What was the median household income in Alabama in 2020?
In 2020, the median household income in Alabama was $52,189.
What is the Gini coefficient in Alabama?
The Gini coefficient in Alabama is 0.572. It measures income inequality on a scale from 0 (everyone earns the same) to 1 (one household earns everything). That is almost the same as the US average of 0.570, so income is distributed about as equally as in the country overall.
How has the income gap between men and women changed in Alabama?
Since 2009, the income gap between men and women in Alabama has narrowed from about 27% to 26% in 2023. In dollar terms, the gap has widened by $4,134 since 2009.