Cost of Living: Allentown, PA vs Ann Arbor, MI (2026)

Allentown

Pennsylvania
79
VS

Ann Arbor

Michigan
121

Allentown is 42% cheaper than Ann Arbor.

$1,269/mo ↓ 18%
Median Rent
$1,552/mo ↑ 22%
$53,403/yr ↓ 34%
Median Income
$81,089/yr ↑ 52%
$188,900 ↓ 57%
Home Value
$435,100 ↑ 130%
$1,243/mo ↓ 24%
Owner Costs
$1,638/mo ↑ 32%
125,320
Population
121,179

Tax Comparison

3.07%
Income Tax
4.25%
6.0%
Sales Tax
6.0%
1.49%
Property Tax
1.38%

Affordability

28.5%
rent-to-income
Affordability
23.0%
rent-to-income

Detailed Comparison

When comparing Allentown, PA and Ann Arbor, MI, the overall cost of living indices are 79 and 121 respectively (national median = 100). Rent is $283/month cheaper in Allentown, saving renters about $3,396/year.

Median household income is $27,686/year higher in Ann Arbor. Home values also differ significantly — the median in Allentown is $188,900 compared to $435,100 in Ann Arbor.

Pennsylvania has a lower income tax rate, making Allentown slightly more tax-friendly.

Frequently Asked Questions

Allentown vs Ann Arbor — common questions

Is Allentown or Ann Arbor cheaper to live in?
Based on our cost index, Allentown is cheaper to live in with an index of 79 compared to 121 (US average = 100).
What is the rent difference between Allentown and Ann Arbor?
Median rent in Allentown is $1,269/month and in Ann Arbor it's $1,552/month — a difference of $283/month.
Which city has higher income, Allentown or Ann Arbor?
Median household income is $53,403 in Allentown and $81,089 in Ann Arbor. Median household income is $27,686/year higher in Ann Arbor.
How do taxes compare between Pennsylvania and Michigan?
Pennsylvania has 3.07% income tax, 6.0% sales tax, and 1.49% property tax. Michigan has 4.25% income tax, 6.0% sales tax, and 1.38% property tax.
Should I move to Allentown or Ann Arbor?
It depends on your priorities. Allentown has a cost index of 79 with median rent of $1,269/mo, while Ann Arbor has a cost index of 121 with rent of $1,552/mo. Consider income potential, tax burden, and lifestyle preferences alongside raw cost data.
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