Median one-bedroom rent across the cities we track is $752 in Michigan versus $1,142 in Tennessee. Overall, Michigan runs roughly 34% cheaper on rent than Tennessee, its main day-to-day cost driver.
Median household income across tracked cities is $39,575 in Michigan and $63,204 in Tennessee — about 37% higher in Tennessee. Michigan has a top state income tax rate of 4.25% and a 6% state sales tax; Tennessee has no state income tax and a 7% state sales tax.
State Taxes
Sales Tax
6%
7%
+1.0 pp in Tennessee
Income Tax (top rate)
4.25%
None
+4.3 pp in Michigan
Housing (median across tracked cities)
Median 1BR Rent
$752
$1,142
+52% in Tennessee
Median Home Value
$76,800
$270,100
+252% in Tennessee
Income (median across tracked cities)
Median Household Income
$39,575
$63,204
+60% in Tennessee
Climate (median across tracked cities)
Avg Annual Temperature
50.3°F
61.3°F
+11.0°F in Tennessee
Michigan vs Tennessee — FAQ
- Is it cheaper to live in Michigan or Tennessee?
- Michigan is cheaper on rent — its median one-bedroom of $752 runs about 34% below Tennessee's $1,142, based on the cities we track in each state.
- How much more do you need to earn to live in Michigan than in Tennessee?
- To keep rent near the recommended 30% of gross income, based on median rent across tracked cities, you'd want to earn roughly $30,000 a year in Michigan versus $46,000 in Tennessee.
- Which has lower taxes, Michigan or Tennessee?
- Michigan has a top state income tax rate of 4.25% and a 6% state sales tax. Tennessee has no state income tax and a 7% state sales tax.
Housing, income, and climate are medians across the 1/2 cities we track in Michigan/Tennessee — not population-weighted statewide figures. Taxes are exact state-level rates. Sources: US Census Bureau, ACS 5-Year; NOAA Climate Normals 1981–2010; Tax Foundation 2026.