Alabama Income Statistics
Alabama Wealth Score
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.
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C
Alabama Below averageLess wealthy than 88% of states in US
Source: Map AI Methodology
Wealthiest and Least Wealthy Counties in Alabama
- Shelby County (114% of U.S. avg)
- Madison County (108% of U.S. avg)
- Baldwin County (101% of U.S. avg)
- Perry County (65% of U.S. avg)
- Greene County (65% 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 | $64,544 | $80,455 |
| Median Personal Income | $52,756 | $60,758 |
| Average Yearly Income Growth | 4.7% | 4.8% |
| Six-Figure Earners | 9.6% | 13.9% |
| $200k+ Households | 7.8% | 13.2% |
The median household income in Alabama is about 20% lower than in US. Income has been growing slower in Alabama (4.7%/yr) than in US (4.8%/yr).
About 10% of adults in Alabama earn six figures ($100,000 or more) a year, lower than the US average of 14%.
Median Household Income 2009–2024 Trend
Median Household Income Over Time
Median household income in Alabama grew by 56.4% from 2009 to 2024, reaching $64,544 in 2024. That's an average of about 4.7% per year.
Income Inequality and the Gender Pay Gap in Alabama
| Metric | Alabama | US Average |
|---|---|---|
| Gini Coefficient | 0.560 | 0.552 |
| Male Median Income | $62,840 | $69,667 |
| Female Median Income | $47,036 | $56,850 |
| Gender Pay Gap | 25.1% | 18.4% |
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 0.560, higher than US's 0.552, so income is less evenly distributed here than 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 $553,140 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 25% in 2024. In dollar terms, the gap has widened by $4,309 since 2009.
Employment
| Metric | Alabama | US Average |
|---|---|---|
| Unemployment Rate | 4.7% | 5.2% |
| Working from Home | 8.8% | 15.0% |
| Commute time (minutes) | 22 | 22 |
Approximately 111,251 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 4.7% in 2024. Over that period the rate peaked at 10.7% in 2013.
Alabama Wealth Compared With Nearby States
Alabama is typical in size for this group, 5,083,438 residents against a local median of 4,610,276, so the measures below are close to a like for like comparison. Alabama sits close to the middle of its own neighbourhood. No measure below is more than 15% off the local median, so the choice between these states turns on things this data does not capture.
The largest of those small differences is unemployment, 8% below the local median at 4.7% against 5.1%. Alabama has the 2nd lowest unemployment of the 6 areas compared here.
| Area | Population | Median household income | Income growthAverage yearly change in median household income since 2016. Each year is measured in its own dollars, so this is growth before inflation. | Unemployment | Income inequalityGini coefficient: 0 would mean every household earns the same, 1 that a single household earns everything. The lower the number, the more equally income is shared here. |
|---|---|---|---|---|---|
| Alabama | 5,083,438 | $64,544 #3/6 | 4.7%/yr #3/6 | 4.7% #2/6 | 0.560 #3/6 |
| Mississippi | 2,946,497 | $56,669 | 4.3%/yr | 5.7% | 0.566 |
| Tennessee | 7,058,506 | $69,901 | 5.2%/yr | 4.6% | 0.542 |
| Georgia | 10,939,918 | $77,523 | 5.3%/yr | 5.1% | 0.561 |
| Kentucky | 4,533,530 | $64,312 | 4.6%/yr | 4.8% | 0.547 |
| Louisiana | 4,610,276 | $60,934 | 3.7%/yr | 6.2% | 0.574 |
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 $64,544, about 20% lower than the US average of $80,455.
How has median household income changed in Alabama?
Between 2009 and 2024, the median household income in Alabama rose 56%, from $41,265 to $64,544. Over the same years, income here kept pace with the U.S. as a whole: +56% against +57%.
What was the median household income in Alabama in 2023?
In 2023, the median household income in Alabama was $62,326, up 5% from $59,613 in 2022. The US median that year was $78,147.
What was the median household income in Alabama in 2020?
In 2020, the median household income in Alabama was $52,196. By 2024 it had risen 24% to $64,544.
What is the Gini coefficient in Alabama?
The Gini coefficient in Alabama is 0.560. It measures income inequality on a scale from 0 (everyone earns the same) to 1 (one household earns everything). That is higher than the US average of 0.552, so income is distributed less equally than 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 25% in 2024. In dollar terms, the gap has widened by $4,309 since 2009.
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