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

Austin

Texas
134
VS

Ann Arbor

Michigan
121

Austin is 11% more expensive than Ann Arbor.

$1,655/mo ↑ 7%
Median Rent
$1,552/mo ↓ 6%
$91,461/yr ↑ 13%
Median Income
$81,089/yr ↓ 11%
$512,700 ↑ 18%
Home Value
$435,100 ↓ 15%
$1,747/mo ↑ 7%
Owner Costs
$1,638/mo ↓ 6%
967,862
Population
121,179

Tax Comparison

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

Affordability

21.7%
rent-to-income
Affordability
23.0%
rent-to-income

Detailed Comparison

When comparing Austin, TX and Ann Arbor, MI, the overall cost of living indices are 134 and 121 respectively (national median = 100). Rent is $103/month cheaper in Ann Arbor, saving renters about $1,236/year.

Median household income is $10,372/year higher in Austin. Home values also differ significantly — the median in Austin is $512,700 compared to $435,100 in Ann Arbor.

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

Frequently Asked Questions

Austin vs Ann Arbor — common questions

Is Austin or Ann Arbor cheaper to live in?
Based on our cost index, Ann Arbor is cheaper to live in with an index of 121 compared to 134 (US average = 100).
What is the rent difference between Austin and Ann Arbor?
Median rent in Austin is $1,655/month and in Ann Arbor it's $1,552/month — a difference of $103/month.
Which city has higher income, Austin or Ann Arbor?
Median household income is $91,461 in Austin and $81,089 in Ann Arbor. Median household income is $10,372/year higher in Austin.
How do taxes compare between Texas and Michigan?
Texas has 0% income tax, 6.25% sales tax, and 1.6% property tax. Michigan has 4.25% income tax, 6.0% sales tax, and 1.38% property tax.
Should I move to Austin or Ann Arbor?
It depends on your priorities. Austin has a cost index of 134 with median rent of $1,655/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.
View Austin details → View Ann Arbor details →

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