Is it cheaper to live in Ann Arbor or Denver?

Ann Arbor, MI is cheaper. Its monthly baseline of $1,630 (1BR rent + utilities) runs about 7% below Denver, CO's $1,760, mainly because of rent.

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

To keep rent near the recommended 30% of gross income, you'd want to earn roughly $56,000 a year in Ann Arbor versus $63,000 in Denver.

Which has lower taxes, Ann Arbor or Denver?

Ann Arbor is taxed under Michigan's rules (a top state income tax rate of 4.25% and a 6% state sales tax); Denver under Colorado's (a top state income tax rate of 4.40% and a 2.9% state sales tax).

Ann Arbor vs Denver Cost of Living 2026

Ann Arbor

Michigan

$1,630/mo est.

Denver

Colorado

$1,760/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 $1,760 in Denver, CO. Overall, Ann Arbor, MI is roughly 7% cheaper to live in day-to-day than Denver, CO, driven mainly by rent.

Median household income is $81,089 in Ann Arbor, MI and $91,681 in Denver, CO — about 12% higher in Denver, CO. Michigan has a top state income tax rate of 4.25% and a 6% state sales tax; Colorado has a top state income tax rate of 4.40% and a 2.9% state sales tax.

Ann Arbor, MI

Denver, CO

Rent

Studio

$1,274

$1,497

+18% in Denver, CO

1 Bedroom

$1,389

$1,583

+14% in Denver, CO

2 Bedroom

$1,692

$1,958

+16% in Denver, CO

3 Bedroom

$1,812

$2,269

+25% in Denver, CO

Buying a Home

Median Home Value

$435,100

$586,700

+35% in Denver, CO

Income

Median Household Income

$81,089

$91,681

+13% in Denver, CO

Metro Median Wage (annual)

$55,380

$62,320

+13% in Denver, CO

People & Lifestyle

Median Age

27.7 yr

35.2 yr

+7.5 yr in Denver, CO

Homeownership

45.6%

49.1%

+3.5 pp in Denver, CO

Bachelor's+ (25+)

77.7%

55.6%

+22.1 pp in Ann Arbor, MI

Avg Commute

19.9 min

25.4 min

+5.5 min in Denver, CO

Crime (per 100k/yr)

Violent Crime

311

999.3

+221% in Denver, CO

Property Crime

1,744.5

4,781.1

+174% in Denver, CO

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

50.2°F

+2.5°F in Denver, CO

Annual Precipitation

32.8 in

15.6 in

+17.2 in in Ann Arbor, MI

Gas

Regular Gasoline

$3.85/gal

$4.16/gal

+8% in Denver, CO

Area: Midwest (PADD 2) vs Denver.

Public Transit

Base Fare (one-way)

—

$2.75

Adult base one-way fare — — vs RTD (2026).

Utilities

Electricity (¢/kWh)

23.0

17.1

+25% in Ann Arbor, MI

Natural Gas ($/MCF)

$19.72

$15.05

+24% in Ann Arbor, MI

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

Groceries

Milk (gal)

$4.31

$4.82

+12% in Denver, CO

Bread (lb)

$1.66

$2.04

+23% in Denver, CO

Eggs (doz)

$3.63

$2.19

+40% in Ann Arbor, MI

Ground Beef (lb)

$6.77

$7.36

+9% in Denver, CO

Chicken (lb)

$2.10

$2.01

+4% in Ann Arbor, MI

Bananas (lb)

$0.62

$0.70

+14% in Denver, CO

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

State Taxes

Sales Tax (MI / CO)

2.9%

+3.1 pp in MI

Income Tax (top rate)

4.25%

4.40%

+0.2 pp in CO

Ann Arbor vs Denver — FAQ

Is it cheaper to live in Ann Arbor or Denver?: Ann Arbor, MI is cheaper. Its monthly baseline of $1,630 (1BR rent + utilities) runs about 7% below Denver, CO's $1,760, mainly because of rent.
How much more do you need to earn to live in Ann Arbor than in Denver?: To keep rent near the recommended 30% of gross income, you'd want to earn roughly $56,000 a year in Ann Arbor versus $63,000 in Denver.
Which has lower taxes, Ann Arbor or Denver?: Ann Arbor is taxed under Michigan's rules (a top state income tax rate of 4.25% and a 6% state sales tax); Denver under Colorado's (a top state income tax rate of 4.40% and a 2.9% 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).