Is it cheaper to live in Ann Arbor or Bozeman?

Bozeman, MT is cheaper. Its monthly baseline of $1,360 (1BR rent + utilities) runs about 17% below Ann Arbor, MI's $1,630, mainly because of rent.

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

To keep rent near the recommended 30% of gross income, you'd want to earn roughly $56,000 a year in Ann Arbor versus $49,000 in Bozeman.

Which has lower taxes, Ann Arbor or Bozeman?

Ann Arbor is taxed under Michigan's rules (a top state income tax rate of 4.25% and a 6% state sales tax); Bozeman under Montana's (a top state income tax rate of 5.65% and no state sales tax).

Ann Arbor vs Bozeman Cost of Living 2026

Ann Arbor

Michigan

$1,630/mo est.

Bozeman

Montana

$1,360/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 $1,360 in Bozeman, MT. Overall, Bozeman, MT is roughly 17% cheaper to live in day-to-day than Ann Arbor, MI, driven mainly by rent.

Median household income is $81,089 in Ann Arbor, MI and $79,903 in Bozeman, MT — about 1% higher in Ann Arbor, MI. Michigan has a top state income tax rate of 4.25% and a 6% state sales tax; Montana has a top state income tax rate of 5.65% and no state sales tax.

Ann Arbor, MI

Bozeman, MT

Rent

Studio

$1,274

$1,064

+16% in Ann Arbor, MI

1 Bedroom

$1,389

$1,214

+13% in Ann Arbor, MI

2 Bedroom

$1,692

$1,528

+10% in Ann Arbor, MI

3 Bedroom

$1,812

$2,057

+14% in Bozeman, MT

Buying a Home

Median Home Value

$435,100

$614,900

+41% in Bozeman, MT

Income

Median Household Income

$81,089

$79,903

+1% in Ann Arbor, MI

Metro Median Wage (annual)

$55,380

$54,830

+1% in Ann Arbor, MI

People & Lifestyle

Median Age

27.7 yr

28.6 yr

+0.9 yr in Bozeman, MT

Homeownership

45.6%

44.6%

+1.0 pp in Ann Arbor, MI

Bachelor's+ (25+)

77.7%

65.1%

+12.6 pp in Ann Arbor, MI

Avg Commute

19.9 min

15.4 min

+4.5 min in Ann Arbor, MI

Crime (per 100k/yr)

Violent Crime

311

451.2

+45% in Bozeman, MT

Property Crime

1,744.5

1,808.3

+4% in Bozeman, MT

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

45.3°F

+2.4°F in Ann Arbor, MI

Annual Precipitation

32.8 in

14.0 in

+18.8 in in Ann Arbor, MI

Gas

Regular Gasoline

$3.85/gal

$4.27/gal

+11% in Bozeman, MT

Area: Midwest (PADD 2) vs Rocky Mountain (PADD 4).

Utilities

Electricity (¢/kWh)

23.0

15.1

+34% in Ann Arbor, MI

Natural Gas ($/MCF)

$19.72

$10.12

+49% in Ann Arbor, MI

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

Groceries

Milk (gal)

$4.31

$4.82

+12% in Bozeman, MT

Bread (lb)

$1.66

$2.04

+23% in Bozeman, MT

Eggs (doz)

$3.63

$2.19

+40% in Ann Arbor, MI

Ground Beef (lb)

$6.77

$7.36

+9% in Bozeman, MT

Chicken (lb)

$2.10

$2.01

+4% in Ann Arbor, MI

Bananas (lb)

$0.62

$0.70

+14% in Bozeman, MT

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

State Taxes

Sales Tax (MI / MT)

None

+6.0 pp in MI

Income Tax (top rate)

4.25%

5.65%

+1.4 pp in MT

Ann Arbor vs Bozeman — FAQ

Is it cheaper to live in Ann Arbor or Bozeman?: Bozeman, MT is cheaper. Its monthly baseline of $1,360 (1BR rent + utilities) runs about 17% below Ann Arbor, MI's $1,630, mainly because of rent.
How much more do you need to earn to live in Ann Arbor than in Bozeman?: To keep rent near the recommended 30% of gross income, you'd want to earn roughly $56,000 a year in Ann Arbor versus $49,000 in Bozeman.
Which has lower taxes, Ann Arbor or Bozeman?: Ann Arbor is taxed under Michigan's rules (a top state income tax rate of 4.25% and a 6% state sales tax); Bozeman under Montana's (a top state income tax rate of 5.65% and no 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).