Is it cheaper to live in Ann Arbor or Annapolis?

Ann Arbor, MI is cheaper. Its monthly baseline of $1,630 (1BR rent + utilities) runs about 11% below Annapolis, MD's $1,830, mainly because of rent.

How much more do you need to earn to live in Ann Arbor than in Annapolis?

To keep rent near the recommended 30% of gross income, you'd want to earn roughly $56,000 a year in Ann Arbor versus $64,000 in Annapolis.

Which has lower taxes, Ann Arbor or Annapolis?

Ann Arbor is taxed under Michigan's rules (a top state income tax rate of 4.25% and a 6% state sales tax); Annapolis under Maryland's (a top state income tax rate of 6.50% and a 6% state sales tax).

Ann Arbor vs Annapolis Cost of Living 2026

Ann Arbor

Michigan

$1,630/mo est.

Annapolis

Maryland

$1,830/mo est.

Monthly estimate = 1BR rent + electricity + gas

A one-person monthly baseline (1BR rent plus typical utilities) runs $1,630 in Ann Arbor, MI versus $1,830 in Annapolis, MD. Overall, Ann Arbor, MI is roughly 11% cheaper to live in day-to-day than Annapolis, MD, driven mainly by rent.

Median household income is $81,089 in Ann Arbor, MI and $104,257 in Annapolis, MD — about 22% higher in Annapolis, MD. Michigan has a top state income tax rate of 4.25% and a 6% state sales tax; Maryland has a top state income tax rate of 6.50% and a 6% state sales tax.

Ann Arbor, MI

Annapolis, MD

Rent

Studio

$1,274

$1,239

+3% in Ann Arbor, MI

1 Bedroom

$1,389

$1,598

+15% in Annapolis, MD

2 Bedroom

$1,692

$1,864

+10% in Annapolis, MD

3 Bedroom

$1,812

$2,232

+23% in Annapolis, MD

Buying a Home

Median Home Value

$435,100

$510,200

+17% in Annapolis, MD

Income

Median Household Income

$81,089

$104,257

+29% in Annapolis, MD

Metro Median Wage (annual)

$55,380

$59,070

+7% in Annapolis, MD

People & Lifestyle

Median Age

27.7 yr

40.9 yr

+13.2 yr in Annapolis, MD

Homeownership

45.6%

59.8%

+14.2 pp in Annapolis, MD

Bachelor's+ (25+)

77.7%

53.7%

+24.0 pp in Ann Arbor, MI

Avg Commute

19.9 min

28.7 min

+8.8 min in Annapolis, MD

Crime (per 100k/yr)

Violent Crime

311

806

+159% in Annapolis, MD

Property Crime

1,744.5

2,111.5

+21% in Annapolis, MD

FBI Crime Data Explorer. Offenses per 100,000 residents per year; agency reporting practices vary, so this is approximate.

Climate

Avg Annual Temperature

47.7°F

57.1°F

+9.4°F in Annapolis, MD

Annual Precipitation

32.8 in

—

Gas

Regular Gasoline

$3.85/gal

$3.94/gal

+2% in Annapolis, MD

Area: Midwest (PADD 2) vs East Coast (PADD 1).

Utilities

Electricity (¢/kWh)

23.0

21.8

+5% in Ann Arbor, MI

Natural Gas ($/MCF)

$19.72

$22.57

+14% in Annapolis, MD

Residential, state-level averages (EIA). MCF = 1,000 cubic feet.

Groceries

Milk (gal)

$4.31

$4.00

+7% in Ann Arbor, MI

Bread (lb)

$1.66

$1.75

+5% in Annapolis, MD

Eggs (doz)

$3.63

$2.21

+39% in Ann Arbor, MI

Ground Beef (lb)

$6.77

$6.45

+5% in Ann Arbor, MI

Chicken (lb)

$2.10

$1.90

+9% in Ann Arbor, MI

Bananas (lb)

$0.62

about equal

Average prices — Midwest vs South (BLS). Regional where available, otherwise U.S. average.

State Taxes

Sales Tax (MI / MD)

about equal

Income Tax (top rate)

4.25%

6.50%

+2.3 pp in MD

Ann Arbor vs Annapolis — FAQ

Is it cheaper to live in Ann Arbor or Annapolis?: Ann Arbor, MI is cheaper. Its monthly baseline of $1,630 (1BR rent + utilities) runs about 11% below Annapolis, MD's $1,830, mainly because of rent.
How much more do you need to earn to live in Ann Arbor than in Annapolis?: To keep rent near the recommended 30% of gross income, you'd want to earn roughly $56,000 a year in Ann Arbor versus $64,000 in Annapolis.
Which has lower taxes, Ann Arbor or Annapolis?: Ann Arbor is taxed under Michigan's rules (a top state income tax rate of 4.25% and a 6% state sales tax); Annapolis under Maryland's (a top state income tax rate of 6.50% and a 6% state sales tax).

Sources: US Census Bureau, ACS 5-Year (rent, income, home value, demographics); NOAA Climate Normals 1981–2010 (climate); EIA weekly retail (gas); Tax Foundation 2026 (state taxes).