Cost of Living: Phoenix, AZ vs Ann Arbor, MI (2026)

Phoenix

Arizona
109
VS

Ann Arbor

Michigan
121

Phoenix is 10% cheaper than Ann Arbor.

$1,458/mo ↓ 6%
Median Rent
$1,552/mo ↑ 6%
$77,041/yr ↓ 5%
Median Income
$81,089/yr ↑ 5%
$381,900 ↓ 12%
Home Value
$435,100 ↑ 14%
$1,430/mo ↓ 13%
Owner Costs
$1,638/mo ↑ 15%
1,624,832
Population
121,179

Tax Comparison

2.5%
Income Tax
4.25%
5.6%
State Sales Tax
6.0%
0.62%
Property Tax
1.38%

Affordability

22.7%
rent-to-income
Affordability
23.0%
rent-to-income

Detailed Comparison

When comparing Phoenix, AZ and Ann Arbor, MI, the overall cost of living indices are 109 and 121 respectively (national median = 100). Rent is $94/month cheaper in Phoenix, saving renters about $1,128/year.

Median household income is $4,048/year higher in Ann Arbor. Home values also differ significantly — the median in Phoenix is $381,900 compared to $435,100 in Ann Arbor.

Arizona has a lower income tax rate, making Phoenix slightly more tax-friendly.

Frequently Asked Questions

Phoenix vs Ann Arbor — common questions

Is Phoenix or Ann Arbor cheaper to live in?
Based on our cost index, Phoenix is cheaper to live in with an index of 109 compared to 121 (US average = 100).
What is the rent difference between Phoenix and Ann Arbor?
Median rent in Phoenix is $1,458/month and in Ann Arbor it's $1,552/month — a difference of $94/month.
Which city has higher income, Phoenix or Ann Arbor?
Median household income is $77,041 in Phoenix and $81,089 in Ann Arbor. Median household income is $4,048/year higher in Ann Arbor.
How do taxes compare between Arizona and Michigan?
Arizona has 2.5% income tax, 5.6% sales tax, and 0.62% property tax. Michigan has 4.25% income tax, 6.0% sales tax, and 1.38% property tax.
Should I move to Phoenix or Ann Arbor?
It depends on your priorities. Phoenix has a cost index of 109 with median rent of $1,458/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 Phoenix details → View Ann Arbor details →

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