The minimum wage in Birmingham is $7.25/hour in 2026. See how it compares to the MIT living wage of $18.50/hour and local cost of living.
Last updated: May 2026 · Data: MIT Living Wage Calculator, C2ER, U.S. Census, BLS, IRS, state and city sources
Calculate annual, monthly, and weekly income at any hourly wage in Birmingham.
The minimum wage in Birmingham is the federal rate of $7.25/hour. Alabama has not enacted a state minimum wage and prevents cities from setting their own, so the federal minimum of $7.25/hour applies to most private employers in Birmingham. The bigger question for most workers is how that compares to what it actually costs to live in Birmingham. With average 1-bedroom rent near $1,150/month and a cost-of-living index of 88 (US average = 100), the gap between the minimum wage and a true living wage is significant.
| Benchmark (Birmingham, 2026) | Hourly | Annual (full-time) |
|---|---|---|
| Applicable minimum wage | $7.25 | $15,080 |
| MIT living wage (single adult) | $18.50 | $38,480 |
| MIT living wage (family of four, one earner) | $38.00 | $79,040 |
| Federal minimum wage | $7.25 | $15,080 |
| Average rent (1-bedroom, annual) | - | $13,800 |
Living wage figures: MIT Living Wage Calculator for Jefferson County. Minimum wage reflects the rate applicable to most private employers in Birmingham.
Birmingham is the largest city in Alabama and a historic steel and iron center that has reinvented itself around healthcare and biomedical research led by the University of Alabama at Birmingham, banking and financial services, and insurance.
| Local Metric | Birmingham (2026 estimate) |
|---|---|
| Metro population | 200,000 |
| County / jurisdiction | Jefferson County |
| Cost of living index (US avg = 100) | 88 |
| MIT living wage, single adult | $18.50/hour |
| MIT living wage, one earner supporting a family of four | $38.00/hour |
| Applicable minimum wage | $7.25/hour |
| Average rent, 1-bedroom | $1,150/month |
| Average rent, 2-bedroom | $1,400/month |
| Median home price | $220,000 |
| Median household income | $55,000/year |
| Combined sales tax rate | 10% |
| Effective property tax rate | 0.55% of value/year |
Local figures are 2026 estimates compiled from the MIT Living Wage Calculator, the C2ER Cost of Living Index, U.S. Census and Zillow housing data, and city and county sources. Verify current figures before relying on them.
The minimum wage in Birmingham is the federal rate of $7.25/hour. Alabama has not enacted a state minimum wage and prevents cities from setting their own, so the federal minimum of $7.25/hour applies to most private employers in Birmingham. A full-time worker (40 hours/week, 52 weeks) earns about $15,080 per year gross before taxes at that rate.
Not for a single adult. The MIT Living Wage Calculator estimates a single adult in Jefferson County needs about $18.50/hour (roughly $38,480/year) to cover basic costs. That is $11.25/hour above the applicable minimum wage, and a one-earner family of four needs closer to $38.00/hour.
At $7.25/hour, full-time work (2,080 hours/year) produces about $15,080 gross. Part-time at 30 hours/week is roughly $11,310/year. Average 1-bedroom rent in Birmingham is about $1,150/month, or $13,800/year.
Alabama has not enacted a state minimum wage and prevents cities from setting their own, so the federal minimum of $7.25/hour applies to most private employers in Birmingham.
The federal minimum wage is $7.25/hour and has not changed since 2009. Alabama has not enacted a state minimum wage and prevents cities from setting their own, so the federal minimum of $7.25/hour applies in Birmingham.