Cost of Living: Sacramento, CA vs Ann Arbor, MI (2026)

Sacramento

California
132
VS

Ann Arbor

Michigan
121

Sacramento is 9% more expensive than Ann Arbor.

$1,694/mo ↑ 9%
Median Rent
$1,552/mo ↓ 8%
$83,753/yr ↑ 3%
Median Income
$81,089/yr ↓ 3%
$484,600 ↑ 11%
Home Value
$435,100 ↓ 10%
$1,752/mo ↑ 7%
Owner Costs
$1,638/mo ↓ 7%
524,802
Population
121,179

Tax Comparison

13.3%
Income Tax
4.25%
7.25%
State Sales Tax
6.0%
0.71%
Property Tax
1.38%

Affordability

24.3%
rent-to-income
Affordability
23.0%
rent-to-income

Detailed Comparison

When comparing Sacramento, CA and Ann Arbor, MI, the overall cost of living indices are 132 and 121 respectively (national median = 100). Rent is $142/month cheaper in Ann Arbor, saving renters about $1,704/year.

Median household income is $2,664/year higher in Sacramento. Home values also differ significantly — the median in Sacramento is $484,600 compared to $435,100 in Ann Arbor.

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

Frequently Asked Questions

Sacramento vs Ann Arbor — common questions

Is Sacramento or Ann Arbor cheaper to live in?
Based on our cost index, Ann Arbor is cheaper to live in with an index of 121 compared to 132 (US average = 100).
What is the rent difference between Sacramento and Ann Arbor?
Median rent in Sacramento is $1,694/month and in Ann Arbor it's $1,552/month — a difference of $142/month.
Which city has higher income, Sacramento or Ann Arbor?
Median household income is $83,753 in Sacramento and $81,089 in Ann Arbor. Median household income is $2,664/year higher in Sacramento.
How do taxes compare between California and Michigan?
California has 13.3% income tax, 7.25% sales tax, and 0.71% property tax. Michigan has 4.25% income tax, 6.0% sales tax, and 1.38% property tax.
Should I move to Sacramento or Ann Arbor?
It depends on your priorities. Sacramento has a cost index of 132 with median rent of $1,694/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 Sacramento details → View Ann Arbor details →

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