Cost of Living: Chattanooga, TN vs Ann Arbor, MI (2026)

Chattanooga

Tennessee
81
VS

Ann Arbor

Michigan
121

Chattanooga is 33% cheaper than Ann Arbor.

$1,155/mo ↓ 26%
Median Rent
$1,552/mo ↑ 34%
$61,028/yr ↓ 25%
Median Income
$81,089/yr ↑ 33%
$259,200 ↓ 40%
Home Value
$435,100 ↑ 68%
$1,112/mo ↓ 32%
Owner Costs
$1,638/mo ↑ 47%
182,832
Population
121,179

Tax Comparison

0%
Income Tax
4.25%
7.0%
State Sales Tax
6.0%
0.64%
Property Tax
1.38%

Affordability

22.7%
rent-to-income
Affordability
23.0%
rent-to-income

Detailed Comparison

When comparing Chattanooga, TN and Ann Arbor, MI, the overall cost of living indices are 81 and 121 respectively (national median = 100). Rent is $397/month cheaper in Chattanooga, saving renters about $4,764/year.

Median household income is $20,061/year higher in Ann Arbor. Home values also differ significantly — the median in Chattanooga is $259,200 compared to $435,100 in Ann Arbor.

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

Frequently Asked Questions

Chattanooga vs Ann Arbor — common questions

Is Chattanooga or Ann Arbor cheaper to live in?
Based on our cost index, Chattanooga is cheaper to live in with an index of 81 compared to 121 (US average = 100).
What is the rent difference between Chattanooga and Ann Arbor?
Median rent in Chattanooga is $1,155/month and in Ann Arbor it's $1,552/month — a difference of $397/month.
Which city has higher income, Chattanooga or Ann Arbor?
Median household income is $61,028 in Chattanooga and $81,089 in Ann Arbor. Median household income is $20,061/year higher in Ann Arbor.
How do taxes compare between Tennessee and Michigan?
Tennessee has 0% income tax, 7.0% sales tax, and 0.64% property tax. Michigan has 4.25% income tax, 6.0% sales tax, and 1.38% property tax.
Should I move to Chattanooga or Ann Arbor?
It depends on your priorities. Chattanooga has a cost index of 81 with median rent of $1,155/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 Chattanooga details → View Ann Arbor details →

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