Cost of Living: Minneapolis, MN vs Ann Arbor, MI (2026)

Minneapolis

Minnesota
102
VS

Ann Arbor

Michigan
121

Minneapolis is 16% cheaper than Ann Arbor.

$1,329/mo ↓ 14%
Median Rent
$1,552/mo ↑ 17%
$80,269/yr ↓ 1%
Median Income
$81,089/yr ↑ 1%
$345,600 ↓ 21%
Home Value
$435,100 ↑ 26%
$1,513/mo ↓ 8%
Owner Costs
$1,638/mo ↑ 8%
426,845
Population
121,179

Tax Comparison

9.85%
Income Tax
4.25%
6.875%
State Sales Tax
6.0%
1.11%
Property Tax
1.38%

Affordability

19.9%
rent-to-income
Affordability
23.0%
rent-to-income

Detailed Comparison

When comparing Minneapolis, MN and Ann Arbor, MI, the overall cost of living indices are 102 and 121 respectively (national median = 100). Rent is $223/month cheaper in Minneapolis, saving renters about $2,676/year.

Median household income is $820/year higher in Ann Arbor. Home values also differ significantly — the median in Minneapolis is $345,600 compared to $435,100 in Ann Arbor.

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

Frequently Asked Questions

Minneapolis vs Ann Arbor — common questions

Is Minneapolis or Ann Arbor cheaper to live in?
Based on our cost index, Minneapolis is cheaper to live in with an index of 102 compared to 121 (US average = 100).
What is the rent difference between Minneapolis and Ann Arbor?
Median rent in Minneapolis is $1,329/month and in Ann Arbor it's $1,552/month — a difference of $223/month.
Which city has higher income, Minneapolis or Ann Arbor?
Median household income is $80,269 in Minneapolis and $81,089 in Ann Arbor. Median household income is $820/year higher in Ann Arbor.
How do taxes compare between Minnesota and Michigan?
Minnesota has 9.85% income tax, 6.875% sales tax, and 1.11% property tax. Michigan has 4.25% income tax, 6.0% sales tax, and 1.38% property tax.
Should I move to Minneapolis or Ann Arbor?
It depends on your priorities. Minneapolis has a cost index of 102 with median rent of $1,329/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.
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