Cost of Living: Louisville, KY vs Ann Arbor, MI (2026)

Louisville

Kentucky
74
VS

Ann Arbor

Michigan
121

Louisville is 39% cheaper than Ann Arbor.

$1,069/mo ↓ 31%
Median Rent
$1,552/mo ↑ 45%
$64,731/yr ↓ 20%
Median Income
$81,089/yr ↑ 25%
$221,500 ↓ 49%
Home Value
$435,100 ↑ 96%
$1,118/mo ↓ 32%
Owner Costs
$1,638/mo ↑ 47%
627,210
Population
121,179

Tax Comparison

4.0%
Income Tax
4.25%
6.0%
State Sales Tax
6.0%
0.83%
Property Tax
1.38%

Affordability

19.8%
rent-to-income
Affordability
23.0%
rent-to-income

Detailed Comparison

When comparing Louisville, KY and Ann Arbor, MI, the overall cost of living indices are 74 and 121 respectively (national median = 100). Rent is $483/month cheaper in Louisville, saving renters about $5,796/year.

Median household income is $16,358/year higher in Ann Arbor. Home values also differ significantly — the median in Louisville is $221,500 compared to $435,100 in Ann Arbor.

Kentucky has a lower income tax rate, making Louisville slightly more tax-friendly.

Frequently Asked Questions

Louisville vs Ann Arbor — common questions

Is Louisville or Ann Arbor cheaper to live in?
Based on our cost index, Louisville is cheaper to live in with an index of 74 compared to 121 (US average = 100).
What is the rent difference between Louisville and Ann Arbor?
Median rent in Louisville is $1,069/month and in Ann Arbor it's $1,552/month — a difference of $483/month.
Which city has higher income, Louisville or Ann Arbor?
Median household income is $64,731 in Louisville and $81,089 in Ann Arbor. Median household income is $16,358/year higher in Ann Arbor.
How do taxes compare between Kentucky and Michigan?
Kentucky has 4.0% income tax, 6.0% sales tax, and 0.83% property tax. Michigan has 4.25% income tax, 6.0% sales tax, and 1.38% property tax.
Should I move to Louisville or Ann Arbor?
It depends on your priorities. Louisville has a cost index of 74 with median rent of $1,069/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 Louisville details → View Ann Arbor details →

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