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

San Jose

California
254
VS

Ann Arbor

Michigan
121

San Jose is 110% more expensive than Ann Arbor.

$2,617/mo ↑ 69%
Median Rent
$1,552/mo ↓ 41%
$141,565/yr ↑ 75%
Median Income
$81,089/yr ↓ 43%
$1,187,800 ↑ 173%
Home Value
$435,100 ↓ 63%
$2,775/mo ↑ 69%
Owner Costs
$1,638/mo ↓ 41%
990,054
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

22.2%
rent-to-income
Affordability
23.0%
rent-to-income

Detailed Comparison

When comparing San Jose, CA and Ann Arbor, MI, the overall cost of living indices are 254 and 121 respectively (national median = 100). Rent is $1,065/month cheaper in Ann Arbor, saving renters about $12,780/year.

Median household income is $60,476/year higher in San Jose. Home values also differ significantly — the median in San Jose is $1,187,800 compared to $435,100 in Ann Arbor.

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

Frequently Asked Questions

San Jose vs Ann Arbor — common questions

Is San Jose 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 254 (US average = 100).
What is the rent difference between San Jose and Ann Arbor?
Median rent in San Jose is $2,617/month and in Ann Arbor it's $1,552/month — a difference of $1,065/month.
Which city has higher income, San Jose or Ann Arbor?
Median household income is $141,565 in San Jose and $81,089 in Ann Arbor. Median household income is $60,476/year higher in San Jose.
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 San Jose or Ann Arbor?
It depends on your priorities. San Jose has a cost index of 254 with median rent of $2,617/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 San Jose details → View Ann Arbor details →

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