Cost of Living: Chattanooga vs Montgomery (2026)
Montgomery has a 6% lower overall cost of living than Chattanooga as of Q1 2026. A one-bedroom apartment runs $1,050/mo in Montgomery vs $1,250/mo in Chattanooga — a 19% difference. Chattanooga has no state income tax, giving residents more take-home pay than those in Montgomery (5% rate).
- Montgomery is 6% cheaper overall (COL index: 86 vs 81)
- 1BR rent: $1,050/mo in Montgomery vs $1,250/mo — 16% savings
- Chattanooga has 0% state income tax — saves ~$3,300+/yr at a $75K salary
- Higher median household income: Chattanooga ($51,000/yr vs $44,000/yr)
- Median home price: $195,000 in Montgomery vs $275,000 — 29% difference
| Category | Chattanooga Tennessee | Montgomery Alabama |
|---|---|---|
| 🏠 HousingQ1 2026 | ||
| Studio rent/mo | $1,000 | $850Best |
| 1BR rent/mo | $1,250 | $1,050Best |
| 2BR rent/mo | $1,650 | $1,400Best |
| Median home price | $275K | $195KBest |
| 🛒 Food & GroceriesQ1 2026 | ||
| Groceries index (100 = US avg) | 94 | 93Best |
| Budget meal (1 person) | $12 | $11Best |
| Mid-range dinner (2) | $50 | $46Best |
| 🚌 TransportationQ1 2026 | ||
| Monthly transit pass/mo | $45 | $38Best |
| Gas price/gal | $3.05 | $2.98Best |
| Car insurance/mo | $145Best | $148 |
| ⚡ UtilitiesQ1 2026 | ||
| Monthly utilities bundle/mo | $165Best | $170 |
| Internet/mo | $58Best | $58 |
| 💰 Income & TaxesQ1 2026 | ||
| Median household income/yr | $51KBest | $44K |
| State income tax% | 0.0%Best | 5.0% |
| Sales tax (combined)% | 9.5% | 9.2%Best |
| 🎬 LeisureQ1 2026 | ||
| Movie ticket | $14.00 | $13.00Best |
| Gym membership/mo | $33 | $30Best |
| Beer at restaurant | $5.50 | $5.00Best |
| 📊 OverviewQ1 2026 | ||
| Overall COL index (100 = US avg) | 86 | 81Best |
| Walk score / 100 | 28Best | 24 |
Frequently asked questions
Is Chattanooga cheaper than Montgomery?
No. Montgomery is 6% cheaper than Chattanooga based on overall cost of living indices (81 vs 86, where 100 = US average).
What is the average rent in Chattanooga vs Montgomery?
As of Q1 2026, the median 1-bedroom rent in Chattanooga is $1,250/month and in Montgomery is $1,050/month. Chattanooga is more expensive by 19%.
How much do I need to earn in Montgomery to match a $75,000 salary in Chattanooga?
To maintain a similar lifestyle, you would need approximately $70,640/year in Montgomery to match a $75,000 salary in Chattanooga. This estimate is based on overall cost of living indices and does not account for individual spending patterns.
Which city has lower taxes — Chattanooga or Montgomery?
Chattanooga has the lower state income tax rate at 0% vs 5%. Chattanooga has no state income tax at all, which can save thousands of dollars per year depending on your income. Note that sales tax and local taxes also vary — see the full breakdown in the table above.
Is it worth moving from Chattanooga to Montgomery?
It depends on your priorities. Montgomery offers lower overall costs and tax advantages, but both cities have different job markets, weather, and lifestyle trade-offs. Use the comparison table above to evaluate rent, groceries, transportation, and income potential side by side based on your specific budget.
Data sourced from Zillow, BLS, Numbeo, Tax Foundation, and US Census ACS · Updated Q1 2026 · For general guidance only
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