What Is the Average Salary in Alabama Compared to the National Average?
Alabama’s cost of living runs significantly below the national average, which affects how far salaries stretch. According to Federal Reserve Economic Data (FRED), Alabama’s median household income was $60,660 in 2023, the most recent year with complete data. The IncomeByZipCode analysis shows Alabama’s median household income is approximately 21% lower than the U.S. median of $78,538.
| Alabama Income Metric | Value | vs. National | Source |
|---|---|---|---|
| Mean Annual Wage (All Occupations) | $57,292 | Below national avg | AL Dept of Labor (June 2025) |
| Median Household Income | $60,660 | -21% | FRED / Census (2023) |
| Entry-Level Mean Wage | $27,814 | — | AL Dept of Labor (June 2025) |
| Experienced Worker Mean Wage | $72,030 | — | AL Dept of Labor (June 2025) |
| Total Employed | 2,091,480 | — | AL Dept of Labor (June 2025) |
What Are the Highest Paying Jobs in Alabama?
Management and executive positions command the highest salaries in Alabama. According to the Alabama Department of Labor’s official wage data, Chief Executives earn a mean annual salary of $213,721, with experienced executives reaching $264,000+.
Top 10 Highest Paying Occupations in Alabama
| Rank | Occupation | Mean Annual Salary | Entry Level | Experienced |
|---|---|---|---|---|
| 1 | Chief Executives | $213,721 | $111,893 | $264,635 |
| 2 | Top Executives (General) | $137,547 | $57,893 | $177,374 |
| 3 | Management Occupations | $122,408 | $61,062 | $153,082 |
| 4 | Physicians/Surgeons | $200,000+ | Varies | $250,000+ |
| 5 | Dentists | $180,000+ | Varies | $220,000+ |
| 6 | Pharmacists | $125,000+ | $110,000 | $140,000+ |
| 7 | Software Engineers (Senior) | $128,303 | $102,000 | $154,000 |
| 8 | Nurse Practitioners | $110,000+ | $95,000 | $125,000+ |
| 9 | Engineering Managers | $140,000+ | $100,000 | $170,000+ |
| 10 | IT Managers | $130,000+ | $90,000 | $160,000+ |
Source: Alabama Department of Labor OES Data (June 2025), PayScale, Levels.fyi
How Much Do Healthcare Workers Earn in Alabama?
Healthcare is one of Alabama’s largest employment sectors, with Registered Nurses consistently ranking among the top in-demand positions. According to the Alabama Department of Labor, Registered Nurses were among the top jobs in December 2024.
Registered Nurse (RN) Salaries
According to Becker’s Hospital Review analysis of BLS May 2024 data, Alabama RN wages are below the national average in raw dollars but offer strong purchasing power due to lower cost of living. Vivian.com reports the average RN salary at approximately $28.96/hour.
| Healthcare Position | Average Hourly | Average Annual | Source |
|---|---|---|---|
| Registered Nurse (RN) | $28.96 | $60,237 | Vivian / BLS 2024 |
| Licensed Practical Nurse (LPN) | $21-$24 | $43,680-$49,920 | BLS Estimates |
| Nurse Practitioner | $50-$60 | $104,000-$124,800 | BLS Estimates |
| Medical Assistant | $15-$18 | $31,200-$37,440 | BLS Estimates |
| Pharmacy Technician | $16-$19 | $33,280-$39,520 | BLS Estimates |
What Do Tech Professionals Earn in Alabama?
Huntsville has emerged as a major tech hub, ranking #1 among emerging North American tech markets according to CBRE’s Tech Talent report, with 17.9% job growth over five years. The tech sector benefits from NASA, Boeing, and defense contractors.
Software Engineer Salaries by Experience Level
According to PayScale’s 2025 Huntsville data, Software Engineers earn varying salaries based on experience:
| Experience Level | Average Base Salary | Total Compensation | Source |
|---|---|---|---|
| Entry-Level (0-1 years) | $76,564 | $76,564 | PayScale 2025 |
| Early Career (1-4 years) | $81,977 | $81,977 | PayScale 2025 |
| Mid-Level | $85,346 | $90,000+ | PayScale 2025 |
| Senior Software Engineer | $128,303 | $153,000 | PayScale / Levels.fyi |
| Median Total Comp (All Levels) | — | $111,275 | Levels.fyi (Huntsville) |
Levels.fyi reports the median total compensation for Software Engineers in Huntsville at $111,275, with the 75th percentile reaching $132,000 and top earners (90th percentile) at $160,000.
Why Is Huntsville a Tech Hotspot?
Huntsville’s cost of living runs approximately 12% below the national average, making tech salaries stretch further than in traditional tech hubs like San Francisco or Seattle. Major employers include NASA’s Marshall Space Flight Center, Boeing, Lockheed Martin, and a growing number of startups.
How Much Do Teachers Earn in Alabama?
Alabama teacher salaries have been increasing in recent years. According to the official Alabama State Minimum Salary Schedule for FY 2025, teacher pay is structured by education level and years of experience.
Alabama Teacher Salary Schedule (FY 2025)
| Experience | Bachelor’s (BS) | Master’s (MS) | Specialist (Ed.S.) | Doctoral (DO) |
|---|---|---|---|---|
| 0-2 years | $47,600 | $51,875 | $55,936 | $59,995 |
| 3 years | $49,616 | $57,058 | $61,521 | $65,982 |
| 10 years | $54,000+ | $62,000+ | $67,000+ | $72,000+ |
| 15+ years | $58,000+ | $67,000+ | $72,000+ | $78,000+ |
Source: Alabama Achieves – State Minimum Salary Schedule 2024-2025
According to USAFacts analysis of BLS data, Alabama pre-K through 12th grade teachers earn between $48,800 and $60,500 per year in 2024, with preschool teachers at the lower end and high school teachers at the higher end.
What Do Skilled Trades Workers Earn in Alabama?
Skilled trades remain in high demand across Alabama, particularly in construction, manufacturing, and automotive industries. The state’s growing manufacturing sector, including automotive plants from Mercedes-Benz, Honda, Hyundai, and Toyota suppliers, drives demand for skilled workers.
Skilled Trades Salary Ranges
| Trade | Entry Level | Experienced | Top Earners |
|---|---|---|---|
| Electrician | $35,000 | $55,000 | $75,000+ |
| Plumber | $32,000 | $52,000 | $70,000+ |
| HVAC Technician | $33,000 | $50,000 | $68,000+ |
| Welder | $32,000 | $48,000 | $65,000+ |
| Automotive Technician | $30,000 | $48,000 | $65,000+ |
| Construction Manager | $55,000 | $80,000 | $110,000+ |
Source: BLS Occupational Employment Statistics, Alabama Department of Labor
How Do Salaries Vary by City in Alabama?
Salaries vary significantly across Alabama’s metropolitan areas. The Bureau of Labor Statistics’ Q1 2025 County Employment and Wages report for Alabama provides regional wage data.
Birmingham Metropolitan Area
As Alabama’s largest metro, Birmingham’s May 2024 BLS occupational data shows strong wages in healthcare, finance, and professional services. The area serves as Alabama’s banking and medical center.
Huntsville Metropolitan Area
The Huntsville metro area leads Alabama in tech and engineering salaries, driven by aerospace and defense industries. Software engineers and aerospace engineers command premium wages compared to other Alabama cities.
Mobile Metropolitan Area
The Mobile area features strong wages in shipbuilding, maritime industries, and healthcare. Airbus’s manufacturing facility has also boosted aerospace employment.
Highest-Income Communities
According to Alabama Demographics 2025 data, the richest city in Alabama is Mountain Brook with an average household income of $302,510. Data Commons rankings confirm Mountain Brook, Meadowbrook, and Trussville among the highest-income cities.
| City | Average Household Income | Region |
|---|---|---|
| Mountain Brook | $302,510 | Birmingham Metro |
| Meadowbrook | $150,000+ | Birmingham Metro |
| Trussville | $100,000+ | Birmingham Metro |
| Madison | $95,000+ | Huntsville Metro |
| Vestavia Hills | $120,000+ | Birmingham Metro |
Source: Alabama Demographics, U.S. Census Bureau 2023 data
What Is Alabama’s Minimum Wage?
According to the National Conference of State Legislatures and Workstream’s Alabama wage data, Alabama follows the federal minimum wage of $7.25 per hour. The state does not have its own minimum wage law that exceeds the federal rate.
Living Wage vs. Minimum Wage
The MIT Living Wage Calculator for Alabama provides data on what workers actually need to meet basic expenses. According to World Population Review’s 2025 data, Alabama’s living wage requirements are lower than most states due to affordable housing and cost of living.
| Wage Type | Hourly Rate | Annual (Full-time) | Source |
|---|---|---|---|
| Minimum Wage | $7.25 | $15,080 | Federal/NCSL |
| Living Wage (Single Adult) | $17-$19 | $35,360-$39,520 | MIT Living Wage Calculator |
| Living Wage (1 Adult, 1 Child) | $32-$35 | $66,560-$72,800 | MIT Living Wage Calculator |
| Comfortable Salary (Single) | $24-$34 | $50,000-$70,000 | Playroll Analysis |
According to Playroll’s 2025 analysis, a salary in the range of $50,000 to $70,000 is generally considered comfortable for a single person in Alabama.
Frequently Asked Questions About Alabama Salaries
What is the average salary in Alabama?
According to the Alabama Department of Labor’s June 2025 data, the mean annual wage across all occupations is $57,292. Entry-level positions average $27,814, while experienced workers earn an average of $72,030.
What is considered a good salary in Alabama?
According to Playroll’s analysis, a salary between $50,000 and $70,000 is considered comfortable for a single person in Alabama. High-paying fields like engineering, healthcare, and tech can offer salaries reaching $100,000 or more.
What is Alabama’s median household income?
According to Federal Reserve Economic Data (FRED), Alabama’s median household income was $60,660 in 2023. This is approximately 21% below the national median of $78,538.
What are the highest paying jobs in Alabama?
Chief Executives ($213,721), physicians, surgeons, and senior software engineers ($128,303 in Huntsville) rank among the highest-paying positions according to Alabama Department of Labor and PayScale data.
How much do nurses make in Alabama?
According to Vivian.com and BLS data, the average RN hourly wage in Alabama is approximately $28.96, translating to about $60,237 annually. Nurse Practitioners earn significantly more, typically $104,000 to $125,000.
How much do teachers make in Alabama?
According to the official Alabama State Minimum Salary Schedule for FY 2025, starting teachers with a Bachelor’s degree earn $47,600, while those with Master’s degrees start at $51,875. Salaries increase with experience and additional education.
Is Huntsville a good place for tech jobs?
Yes, Huntsville ranks #1 among emerging North American tech markets according to CBRE’s Tech Talent report, with 17.9% job growth over five years. Software engineers earn a median of $106,410-$111,275, and the cost of living is 12% below the national average.
What is the minimum wage in Alabama?
Alabama follows the federal minimum wage of $7.25 per hour. The state does not have its own minimum wage law that exceeds the federal rate.
Where can I find official Alabama salary data?
The Alabama Department of Labor publishes occupational employment and wage estimates. The Bureau of Labor Statistics also provides metro-area data for Birmingham, Huntsville, and Mobile.
Which Alabama city has the highest incomes?
Mountain Brook has the highest average household income at $302,510 according to Alabama Demographics 2025 data. Other high-income communities include Vestavia Hills, Meadowbrook, and Madison in the Huntsville area.
Alabama Salaries
Alabama offers competitive salaries when adjusted for cost of living, particularly in growing sectors like technology, healthcare, and aerospace. Huntsville’s emergence as a top tech market provides opportunities for software engineers and technical professionals to earn strong salaries in an affordable area.
Key salary resources for job seekers include the Alabama Department of Labor’s wage data, Bureau of Labor Statistics state estimates, and city-specific reports for Birmingham, Huntsville, and Mobile.