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

McAllen

Texas
66
VS

Ann Arbor

Michigan
121

McAllen is 45% cheaper than Ann Arbor.

$1,017/mo ↓ 34%
Median Rent
$1,552/mo ↑ 53%
$60,165/yr ↓ 26%
Median Income
$81,089/yr ↑ 35%
$173,800 ↓ 60%
Home Value
$435,100 ↑ 150%
$996/mo ↓ 39%
Owner Costs
$1,638/mo ↑ 64%
143,789
Population
121,179

Tax Comparison

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

Affordability

20.3%
rent-to-income
Affordability
23.0%
rent-to-income

Detailed Comparison

When comparing McAllen, TX and Ann Arbor, MI, the overall cost of living indices are 66 and 121 respectively (national median = 100). Rent is $535/month cheaper in McAllen, saving renters about $6,420/year.

Median household income is $20,924/year higher in Ann Arbor. Home values also differ significantly — the median in McAllen is $173,800 compared to $435,100 in Ann Arbor.

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

Frequently Asked Questions

McAllen vs Ann Arbor — common questions

Is McAllen or Ann Arbor cheaper to live in?
Based on our cost index, McAllen is cheaper to live in with an index of 66 compared to 121 (US average = 100).
What is the rent difference between McAllen and Ann Arbor?
Median rent in McAllen is $1,017/month and in Ann Arbor it's $1,552/month — a difference of $535/month.
Which city has higher income, McAllen or Ann Arbor?
Median household income is $60,165 in McAllen and $81,089 in Ann Arbor. Median household income is $20,924/year higher in Ann Arbor.
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 McAllen or Ann Arbor?
It depends on your priorities. McAllen has a cost index of 66 with median rent of $1,017/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 McAllen details → View Ann Arbor details →

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