Cost of Living: Newark, NJ vs Ann Arbor, MI (2026)

Newark

New Jersey
100
VS

Ann Arbor

Michigan
121

Newark is 17% cheaper than Ann Arbor.

$1,330/mo ↓ 14%
Median Rent
$1,552/mo ↑ 17%
$48,416/yr ↓ 40%
Median Income
$81,089/yr ↑ 67%
$337,800 ↓ 22%
Home Value
$435,100 ↑ 29%
$1,419/mo ↓ 13%
Owner Costs
$1,638/mo ↑ 15%
307,188
Population
121,179

Tax Comparison

10.75%
Income Tax
4.25%
6.625%
State Sales Tax
6.0%
2.23%
Property Tax
1.38%

Affordability

33.0%
rent-to-income
Affordability
23.0%
rent-to-income

Detailed Comparison

When comparing Newark, NJ and Ann Arbor, MI, the overall cost of living indices are 100 and 121 respectively (national median = 100). Rent is $222/month cheaper in Newark, saving renters about $2,664/year.

Median household income is $32,673/year higher in Ann Arbor. Home values also differ significantly — the median in Newark is $337,800 compared to $435,100 in Ann Arbor.

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

Frequently Asked Questions

Newark vs Ann Arbor — common questions

Is Newark or Ann Arbor cheaper to live in?
Based on our cost index, Newark is cheaper to live in with an index of 100 compared to 121 (US average = 100).
What is the rent difference between Newark and Ann Arbor?
Median rent in Newark is $1,330/month and in Ann Arbor it's $1,552/month — a difference of $222/month.
Which city has higher income, Newark or Ann Arbor?
Median household income is $48,416 in Newark and $81,089 in Ann Arbor. Median household income is $32,673/year higher in Ann Arbor.
How do taxes compare between New Jersey and Michigan?
New Jersey has 10.75% income tax, 6.625% sales tax, and 2.23% property tax. Michigan has 4.25% income tax, 6.0% sales tax, and 1.38% property tax.
Should I move to Newark or Ann Arbor?
It depends on your priorities. Newark has a cost index of 100 with median rent of $1,330/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 Newark details → View Ann Arbor details →

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