Salaries in Alabama

Compare average salaries across 1 major metro areas in Alabama. Find the highest paying cities and explore salary data for 80+ occupations.

State Average

$72,506

across all occupations

Highest Paying City

$72,506

Birmingham

Minimum Wage

$7.25/hr

Federal minimum

Income Tax

2% - 5%

Progressive

Working in Alabama: Salary Context

Minimum Wage

The minimum wage in Alabama is $7.25/hour (following the federal minimum). The average salary in Alabama is 4.8x the minimum wage. Note: Follows federal minimum wage.

Major Industries

Alabama's economy is driven by Aerospace & Defense, Automotive Manufacturing, Healthcare, with additional strength in Agriculture, Steel Production.

Tax Considerations

Alabama has relatively low income taxes (max 5%), which can boost your take-home pay compared to high-tax states.

Metro Areas in Alabama

#1 in AL

Birmingham, AL

$72,506

avg salary

Top Paying Job: Physician$209,680

Cost of Living: 89.7(100 = national avg)

View all 80 occupations

Compare With Neighboring States

See how salaries in Alabama compare to nearby states. Geographic proximity often means similar job markets and cost of living.

Frequently Asked Questions About Alabama Salaries

What is the average salary in Alabama?

The average salary across all occupations and metro areas in Alabama is approximately $72,506 per year. However, salaries vary significantly by occupation, city, and experience level. Birmingham, AL has the highest average salaries ($72,506) while Birmingham, AL has lower average salaries ($72,506).

What is the minimum wage in Alabama?

The minimum wage in Alabama is $7.25 per hour, following the federal minimum wage. At full-time hours, this equals approximately $15,080 per year before taxes. Note: Follows federal minimum wage.

Does Alabama have state income tax?

Yes, Alabama has state income tax with rates of 2% - 5%. This should be factored into salary comparisons with states that have no income tax.

What industries are biggest in Alabama?

Alabama's major industries include Aerospace & Defense, Automotive Manufacturing, Healthcare, Agriculture, Steel Production. These industries drive employment and salary levels across the state's 1 metro areas. Workers in these sectors may find more job opportunities and higher salaries.