Is it cheaper to live in Ann Arbor or Newark?

Newark, NJ is cheaper. Its monthly baseline of $1,230 (1BR rent + utilities) runs about 25% 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 Newark?

To keep rent near the recommended 30% of gross income, you'd want to earn roughly $56,000 a year in Ann Arbor versus $39,000 in Newark.

Which has lower taxes, Ann Arbor or Newark?

Ann Arbor is taxed under Michigan's rules (a top state income tax rate of 4.25% and a 6% state sales tax); Newark under New Jersey's (a top state income tax rate of 10.75% and a 6.625% state sales tax).

Ann Arbor vs Newark Cost of Living 2026

Ann Arbor

Michigan

$1,630/mo est.

Newark

New Jersey

$1,230/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 $1,230 in Newark, NJ. Overall, Newark, NJ is roughly 25% 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 $48,416 in Newark, NJ — about 40% higher in Ann Arbor, MI. Michigan has a top state income tax rate of 4.25% and a 6% state sales tax; New Jersey has a top state income tax rate of 10.75% and a 6.625% state sales tax.

Ann Arbor, MI

Newark, NJ

Rent

Studio

$1,274

$1,111

+13% in Ann Arbor, MI

1 Bedroom

$1,389

$978

+30% in Ann Arbor, MI

2 Bedroom

$1,692

$1,386

+18% in Ann Arbor, MI

3 Bedroom

$1,812

$1,695

+6% in Ann Arbor, MI

Buying a Home

Median Home Value

$435,100

$337,800

+22% in Ann Arbor, MI

Income

Median Household Income

$81,089

$48,416

+40% in Ann Arbor, MI

Metro Median Wage (annual)

$55,380

$61,430

+11% in Newark, NJ

People & Lifestyle

Median Age

27.7 yr

34.8 yr

+7.1 yr in Newark, NJ

Homeownership

45.6%

24.1%

+21.5 pp in Ann Arbor, MI

Bachelor's+ (25+)

77.7%

17.4%

+60.3 pp in Ann Arbor, MI

Avg Commute

19.9 min

33.2 min

+13.3 min in Newark, NJ

Crime (per 100k/yr)

Violent Crime

311

582.5

+87% in Newark, NJ

Property Crime

1,744.5

1,961.8

+12% in Newark, NJ

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

54.9°F

+7.2°F in Newark, NJ

Annual Precipitation

32.8 in

46.3 in

+13.4 in in Newark, NJ

Gas

Regular Gasoline

$3.85/gal

$3.94/gal

+2% in Newark, NJ

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

Utilities

Electricity (¢/kWh)

23.0

24.9

+9% in Newark, NJ

Natural Gas ($/MCF)

$19.72

$17.68

+10% in Ann Arbor, MI

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

Groceries

Milk (gal)

$4.31

about equal

Bread (lb)

$1.66

$1.92

+16% in Newark, NJ

Eggs (doz)

$3.63

$2.19

+40% in Ann Arbor, MI

Ground Beef (lb)

$6.77

$6.90

+2% in Newark, NJ

Chicken (lb)

$2.10

$2.19

+4% in Newark, NJ

Bananas (lb)

$0.62

$0.69

+12% in Newark, NJ

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

State Taxes

Sales Tax (MI / NJ)

6.625%

+0.6 pp in NJ

Income Tax (top rate)

4.25%

10.75%

+6.5 pp in NJ

Ann Arbor vs Newark — FAQ

Is it cheaper to live in Ann Arbor or Newark?: Newark, NJ is cheaper. Its monthly baseline of $1,230 (1BR rent + utilities) runs about 25% 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 Newark?: To keep rent near the recommended 30% of gross income, you'd want to earn roughly $56,000 a year in Ann Arbor versus $39,000 in Newark.
Which has lower taxes, Ann Arbor or Newark?: Ann Arbor is taxed under Michigan's rules (a top state income tax rate of 4.25% and a 6% state sales tax); Newark under New Jersey's (a top state income tax rate of 10.75% and a 6.625% 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).