A+
9%
Overall NAT. AVG.
9%
Goods & Services NAT. AVG.
21%
Housing NAT. AVG.
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Date & Last Updated: This data reflects 2023 and was released from C2ER in January, 2024; this is the most current data available.
The cost of living index is based on a national average of 100. For example, if the cost of living is 90, then it is 10% lower than average. If the cost of living is 110, then it is 10% higher than average. The breakdown for each index is as follows: goods & services (33%), groceries (13%), health care (5%), housing (30%), transportation (9%) and utilities (10%). If the cost of living data was unavailable for this city, estimates based upon nearby cities were used.
Index Oxford Alabama National
Cost of living9188100
Goods & Services9196100
Groceries9496100
Health care8087100
Housing7972100
Transportation9291100
Utilities124102100

An Overview of Cost of Living in Oxford, AL

Understanding the cost of living in Oxford can help future residents assess whether their current financial situation aligns with the expenses they will encounter. It enables them to plan for potential changes in their budget and lifestyle. The Oxford cost of living index is 91, which is 9% lower than the national average. The cost of living index is calculated by taking into account multiple categories, which encompass both the cost of everyday expenditures and larger expenses as well.

The cost of living in Oxford aligns closely with the national average when compared to other cities across the nation. Everyday essentials such as groceries, goods and services, health care and utility bills are priced at a level consistent with the average in similar urban areas. Oxford residents can anticipate that their daily expenses won't be significantly higher than those in an average city, ensuring that the cost of living remains manageable.

Is Oxford Affordable?

Is Oxford affordable? This is a pivotal question, especially when mulling over a move, as affordability carries substantial weight in your decision-making process. Factors such as the cost of living index (discussed earlier), housing expenses and income levels all contribute to a location's affordability. For instance, in Oxford, the median home price is 23.4% lower than the national average and monthly rent prices are 15% lower than the typical rates. Additionally, the median income levels play a role in affordability, with Oxford boasting a median household income of $63,156, 14.2% higher than the national average.

What Factors can Influence the Cost of Living in Oxford?

Urbanization: Larger, urban areas boasting abundant amenities and robust employment prospects often exhibit a heightened cost of living, driven by the increased demand for services and residential relocation. Consequently, this leads to elevated home prices and higher rental rates. In contrast, sparsely populated rural locales or regions marked by diminished demand typically offer a more limited range of amenities and experience slower job market expansion. This translates into a more affordable cost of living.

Taxes: Regions that impose higher taxes, including sales and income taxes, can contribute to an increased cost of living. Higher taxes for everyday necessities such as clothing, utilities and food inevitably leads to higher expenditures. Additionally, a higher income tax rate can also play a role in elevating the overall cost of living. In Oxford, the prevailing sales tax rate starts at 4%, and income tax rates kick off at 2%.

Utilities: Much like any other costs, utility expenses can exhibit considerable variations, influenced by factors such as climate, available energy sources, geographic location and state regulations. The costs associated with electricity, water, heating, and waste disposal can vary significantly depending on the city or state in question. In Oxford, the utilities index stands at 23.5% higher than the national average.

Where is the Data From?

The Oxford cost of living data displayed above is derived from the C2ER cost of living index to provide a useful and reasonably accurate measure of living cost differences in urban areas. The index takes into account data from 300 independent researches, covering more than 60 goods and services across 6 different categories, to create an overall index for each area, with 100 being the average. The C2ER index does not include sales or income tax rates in their data, however AreaVibes does include both income and sales tax rates in the overall cost of living score for each area.

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Cost Of Living Quick Facts

  • The cost of living in Oxford is 3% higher than the Alabama average
  • The cost of living in Oxford is 9% lower than the national average
  • Oxford housing is 21% lower than the national average
  • Alabama general sales tax is 22% lower than the national average
  • Alabama state income tax is 23% lower than the national average

Most Affordable Places to Live in and Around Oxford

See all the best places to live around Oxford

Compare Oxford, AL Cost of Living

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      Salary Calculator

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      Price difference in compared to
      Cost of living index
      Goods & Services index
      Groceries index
      Health care index
      Housing index
      Transportation index
      Utilities index

      Median Income & Debt-To-Income Ratio

      Median Income Per Year Per Month Max Budget (28% DTI) Max Budget (36% DTI)
      Owners$70,439$5,870$1,643$2,113
      Renters$37,733$3,144$880$1,132
      A good way to judge both the affordability of the housing and the cost of living in Oxford is by simply calculating the maximum that should be spent on housing, otherwise known as the debt-to-income ratio (DTI). The plan is to avoid spending more than 28 percent of the gross income on costs that pertain to housing and no more than 36 percent on all expenses and debts. Oxford has a median income of about $70,439 for people who own homes. Based on that number, a maximum of $1,643 should be spent on expenses related to housing. Renters have a slightly different median income, which is $37,733. Based on this average, renters should spend no more than $880 on all rental costs if they want to maintain a non-impoverished standard of living.

      Alabama Sales Tax

      State General Sales Tax With Max Surtax
      Alabama 4% 13.5%

      Alabama Income Tax

      State Income Tax (Low) Income Tax (High)
      Alabama 2% 5%

      Goods & Services

      Item Oxford National avg. Difference
      Haircut $16.56$24.2631.8%
      Beauty Salon $35.56$45.5622.0%
      Toothpaste $3.67$3.700.9%
      Shampoo $1.28$1.280.0%
      Movie $11.49$12.135.3%
      Bowling $16.50$18.008.3%

      Groceries

      Item Oxford National avg. Difference
      Ground Beef $5.17$5.8411.5%
      Fried Chicken $1.67$1.576.2%
      Milk $4.56$4.672.3%
      Potatoes $5.40$4.939.4%
      Pizza $10.59$12.0912.4%
      Beer $10.17$10.412.3%

      Health Care

      Item Oxford National avg. Difference
      Optometrist $83.34$125.6833.7%
      Doctor $98.98$135.7827.1%
      Dentist $81.53$113.2928.0%
      Ibuprofen $10.24$10.653.8%
      Lipitor $483.70$468.603.2%

      Housing

      Item Oxford National avg. Difference
      Home Price $141,500.00$184,700.0023.4%
      Avg. Mortgage Payment $1,405.24$2,346.6940.1%
      Apartment Rent $807.00$949.0015.0%

      Transportation

      Item Oxford National avg. Difference
      Gasoline $3.07$3.4611.3%
      Tire Balancing $59.63$59.920.5%

      Utilities

      Item Oxford National avg. Difference
      All Electricity $270.14$193.9939.3%
      Phone $188.01$192.252.2%
      Although the cost of living data is updated regularly, this cost of living information is to be used as estimates only as prices can change on an ongoing basis.

      Nearby cities with low cost of living

      City Population Cost of Living Index National Avg.
      White Plains, AL541964.3%
      Delta, AL118964.3%
      West End-Cobb Town, AL3,4928020.1%
      Hobson City, AL7778019.7%
      Munford, AL1,4658119.1%
      Oxford, AL21,282919.3%

      Cities with similar population

      City Population Cost of Living Index National Avg.
      Birmingham, MI21,27214847.5%
      Beaumont, AB21,267n/a 
      Pickerington, OH21,2571054.6%
      Carrboro, NC21,25412222.3%
      Bellview, FL21,314927.7%
      Oxford, AL21,282919.3%
      Date & Last Updated: This data reflects 2023 and was released from C2ER in January, 2024; this is the most current data available.