Michigan · Population 21,612 · Updated March 2026
How far your income goes in Birmingham
State-level tax rates that affect your costs
Birmingham has a significantly higher cost of living than most US cities, driven largely by premium housing costs. With a cost index of 175 (where 100 equals the national median), Birmingham residents can expect to pay median rent of $1,891/month while earning a median household income of $153,125/year.
The median home value in Birmingham, MI is $712,700, with typical monthly owner costs around $2,422 including mortgage, insurance, and taxes. The median rent-to-income ratio of 14.8% means housing is relatively affordable here — well below the 30% threshold that HUD considers cost-burdened.
Michigan has a moderate income tax rate of 4.25%. Combined with a 6.0% sales tax rate and 1.38% effective property tax rate, the overall tax environment is a factor in the total cost of living in Birmingham.
Common questions about living costs in Birmingham