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

Paterson

New Jersey
106
VS

Ann Arbor

Michigan
121

Paterson is 12% cheaper than Ann Arbor.

$1,457/mo ↓ 6%
Median Rent
$1,552/mo ↑ 7%
$53,766/yr ↓ 34%
Median Income
$81,089/yr ↑ 51%
$335,400 ↓ 23%
Home Value
$435,100 ↑ 30%
$1,553/mo ↓ 5%
Owner Costs
$1,638/mo ↑ 5%
157,660
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

32.5%
rent-to-income
Affordability
23.0%
rent-to-income

Detailed Comparison

When comparing Paterson, NJ and Ann Arbor, MI, the overall cost of living indices are 106 and 121 respectively (national median = 100). Rent is $95/month cheaper in Paterson, saving renters about $1,140/year.

Median household income is $27,323/year higher in Ann Arbor. Home values also differ significantly — the median in Paterson is $335,400 compared to $435,100 in Ann Arbor.

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

Frequently Asked Questions

Paterson vs Ann Arbor — common questions

Is Paterson or Ann Arbor cheaper to live in?
Based on our cost index, Paterson is cheaper to live in with an index of 106 compared to 121 (US average = 100).
What is the rent difference between Paterson and Ann Arbor?
Median rent in Paterson is $1,457/month and in Ann Arbor it's $1,552/month — a difference of $95/month.
Which city has higher income, Paterson or Ann Arbor?
Median household income is $53,766 in Paterson and $81,089 in Ann Arbor. Median household income is $27,323/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 Paterson or Ann Arbor?
It depends on your priorities. Paterson has a cost index of 106 with median rent of $1,457/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 Paterson details → View Ann Arbor details →

More Comparisons

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