Michigan · Population 107,846 · Updated March 2026
How far your income goes in Dearborn
State-level tax rates that affect your costs
Dearborn is significantly cheaper than the national average, making it an attractive option for budget-conscious individuals and families. With a cost index of 79 (where 100 equals the national median), Dearborn residents can expect to pay median rent of $1,264/month while earning a median household income of $65,192/year.
The median home value in Dearborn, MI is $205,900, with typical monthly owner costs around $1,174 including mortgage, insurance, and taxes. The median rent-to-income ratio of 23.3% 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 Dearborn.
Common questions about living costs in Dearborn
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