Cost of Living: Madison, WI vs Ann Arbor, MI (2026)

Madison

Wisconsin
103
VS

Ann Arbor

Michigan
121

Madison is 15% cheaper than Ann Arbor.

$1,364/mo ↓ 12%
Median Rent
$1,552/mo ↑ 14%
$76,983/yr ↓ 5%
Median Income
$81,089/yr ↑ 5%
$346,900 ↓ 20%
Home Value
$435,100 ↑ 25%
$1,476/mo ↓ 10%
Owner Costs
$1,638/mo ↑ 11%
275,568
Population
121,179

Tax Comparison

7.65%
Income Tax
4.25%
5.0%
State Sales Tax
6.0%
1.61%
Property Tax
1.38%

Affordability

21.3%
rent-to-income
Affordability
23.0%
rent-to-income

Detailed Comparison

When comparing Madison, WI and Ann Arbor, MI, the overall cost of living indices are 103 and 121 respectively (national median = 100). Rent is $188/month cheaper in Madison, saving renters about $2,256/year.

Median household income is $4,106/year higher in Ann Arbor. Home values also differ significantly — the median in Madison is $346,900 compared to $435,100 in Ann Arbor.

Michigan has a lower income tax rate, making Ann Arbor slightly more tax-friendly.

Frequently Asked Questions

Madison vs Ann Arbor — common questions

Is Madison or Ann Arbor cheaper to live in?
Based on our cost index, Madison is cheaper to live in with an index of 103 compared to 121 (US average = 100).
What is the rent difference between Madison and Ann Arbor?
Median rent in Madison is $1,364/month and in Ann Arbor it's $1,552/month — a difference of $188/month.
Which city has higher income, Madison or Ann Arbor?
Median household income is $76,983 in Madison and $81,089 in Ann Arbor. Median household income is $4,106/year higher in Ann Arbor.
How do taxes compare between Wisconsin and Michigan?
Wisconsin has 7.65% income tax, 5.0% sales tax, and 1.61% property tax. Michigan has 4.25% income tax, 6.0% sales tax, and 1.38% property tax.
Should I move to Madison or Ann Arbor?
It depends on your priorities. Madison has a cost index of 103 with median rent of $1,364/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 Madison details → View Ann Arbor details →

More Comparisons

Other cost of living comparisons for Madison and Ann Arbor

Madison vs. Buffalo Madison vs. Chula Vista Madison vs. Chandler Madison vs. Gilbert Madison vs. Plano Madison vs. North Las Vegas Ann Arbor vs. Lafayette Ann Arbor vs. Berkeley Ann Arbor vs. Rochester Ann Arbor vs. Fairfield Ann Arbor vs. Independence Ann Arbor vs. Hartford