Cost of Living: Waco, TX vs Ann Arbor, MI (2026)

Waco

Texas
72
VS

Ann Arbor

Michigan
121

Waco is 40% cheaper than Ann Arbor.

$1,098/mo ↓ 29%
Median Rent
$1,552/mo ↑ 41%
$51,468/yr ↓ 37%
Median Income
$81,089/yr ↑ 58%
$199,600 ↓ 54%
Home Value
$435,100 ↑ 118%
$1,094/mo ↓ 33%
Owner Costs
$1,638/mo ↑ 50%
141,925
Population
121,179

Tax Comparison

0%
Income Tax
4.25%
6.25%
State Sales Tax
6.0%
1.6%
Property Tax
1.38%

Affordability

25.6%
rent-to-income
Affordability
23.0%
rent-to-income

Detailed Comparison

When comparing Waco, TX and Ann Arbor, MI, the overall cost of living indices are 72 and 121 respectively (national median = 100). Rent is $454/month cheaper in Waco, saving renters about $5,448/year.

Median household income is $29,621/year higher in Ann Arbor. Home values also differ significantly — the median in Waco is $199,600 compared to $435,100 in Ann Arbor.

Texas has no state income tax, giving Waco residents a significant tax advantage over Michigan's 4.25% rate.

Frequently Asked Questions

Waco vs Ann Arbor — common questions

Is Waco or Ann Arbor cheaper to live in?
Based on our cost index, Waco is cheaper to live in with an index of 72 compared to 121 (US average = 100).
What is the rent difference between Waco and Ann Arbor?
Median rent in Waco is $1,098/month and in Ann Arbor it's $1,552/month — a difference of $454/month.
Which city has higher income, Waco or Ann Arbor?
Median household income is $51,468 in Waco and $81,089 in Ann Arbor. Median household income is $29,621/year higher in Ann Arbor.
How do taxes compare between Texas and Michigan?
Texas has 0% income tax, 6.25% sales tax, and 1.6% property tax. Michigan has 4.25% income tax, 6.0% sales tax, and 1.38% property tax.
Should I move to Waco or Ann Arbor?
It depends on your priorities. Waco has a cost index of 72 with median rent of $1,098/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 Waco details → View Ann Arbor details →

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