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

Memphis

Tennessee
68
VS

Ann Arbor

Michigan
121

Memphis is 44% cheaper than Ann Arbor.

$1,123/mo ↓ 28%
Median Rent
$1,552/mo ↑ 38%
$51,211/yr ↓ 37%
Median Income
$81,089/yr ↑ 58%
$157,100 ↓ 64%
Home Value
$435,100 ↑ 177%
$1,087/mo ↓ 34%
Owner Costs
$1,638/mo ↑ 51%
629,063
Population
121,179

Tax Comparison

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

Affordability

26.3%
rent-to-income
Affordability
23.0%
rent-to-income

Detailed Comparison

When comparing Memphis, TN and Ann Arbor, MI, the overall cost of living indices are 68 and 121 respectively (national median = 100). Rent is $429/month cheaper in Memphis, saving renters about $5,148/year.

Median household income is $29,878/year higher in Ann Arbor. Home values also differ significantly — the median in Memphis is $157,100 compared to $435,100 in Ann Arbor.

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

Frequently Asked Questions

Memphis vs Ann Arbor — common questions

Is Memphis or Ann Arbor cheaper to live in?
Based on our cost index, Memphis is cheaper to live in with an index of 68 compared to 121 (US average = 100).
What is the rent difference between Memphis and Ann Arbor?
Median rent in Memphis is $1,123/month and in Ann Arbor it's $1,552/month — a difference of $429/month.
Which city has higher income, Memphis or Ann Arbor?
Median household income is $51,211 in Memphis and $81,089 in Ann Arbor. Median household income is $29,878/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 Memphis or Ann Arbor?
It depends on your priorities. Memphis has a cost index of 68 with median rent of $1,123/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 Memphis details → View Ann Arbor details →

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