Cost of Living: Ann Arbor, MI vs Allen, TX (2026)

Ann Arbor

Michigan
121
VS

Allen

Texas
137

Ann Arbor is 12% cheaper than Allen.

$1,552/mo ↓ 17%
Median Rent
$1,877/mo ↑ 21%
$81,089/yr ↓ 37%
Median Income
$129,130/yr ↑ 59%
$435,100 ↑ 1%
Home Value
$429,900 ↓ 1%
$1,638/mo ↓ 21%
Owner Costs
$2,083/mo ↑ 27%
121,179
Population
107,684

Tax Comparison

4.25%
Income Tax
0%
6.0%
State Sales Tax
6.25%
1.38%
Property Tax
1.6%

Affordability

23.0%
rent-to-income
Affordability
17.4%
rent-to-income

Detailed Comparison

When comparing Ann Arbor, MI and Allen, TX, the overall cost of living indices are 121 and 137 respectively (national median = 100). Rent is $325/month cheaper in Ann Arbor, saving renters about $3,900/year.

Median household income is $48,041/year higher in Allen. Home values also differ significantly — the median in Ann Arbor is $435,100 compared to $429,900 in Allen.

Texas has no state income tax, giving Allen residents a significant tax advantage over Michigan's 4.25% rate.

Frequently Asked Questions

Ann Arbor vs Allen — common questions

Is Ann Arbor or Allen cheaper to live in?
Based on our cost index, Ann Arbor is cheaper to live in with an index of 121 compared to 137 (US average = 100).
What is the rent difference between Ann Arbor and Allen?
Median rent in Ann Arbor is $1,552/month and in Allen it's $1,877/month — a difference of $325/month.
Which city has higher income, Ann Arbor or Allen?
Median household income is $81,089 in Ann Arbor and $129,130 in Allen. Median household income is $48,041/year higher in Allen.
How do taxes compare between Michigan and Texas?
Michigan has 4.25% income tax, 6.0% sales tax, and 1.38% property tax. Texas has 0% income tax, 6.25% sales tax, and 1.6% property tax.
Should I move to Ann Arbor or Allen?
It depends on your priorities. Ann Arbor has a cost index of 121 with median rent of $1,552/mo, while Allen has a cost index of 137 with rent of $1,877/mo. Consider income potential, tax burden, and lifestyle preferences alongside raw cost data.
View Ann Arbor details → View Allen details →

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