Living Cost Compare
Ann Arbor

Michigan

$1,630/mo est.

vs
Philadelphia

Pennsylvania

$1,430/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 $1,430 in Philadelphia, PA. Overall, Philadelphia, PA is roughly 12% 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 $60,698 in Philadelphia, PA — about 25% higher in Ann Arbor, MI. Michigan has a top state income tax rate of 4.25% and a 6% state sales tax; Pennsylvania has a top state income tax rate of 3.07% and a 6% state sales tax.

Ann Arbor, MI
Philadelphia, PA

Rent

Studio
$1,274
$1,126
+12% in Ann Arbor, MI
1 Bedroom
$1,389
$1,189
+14% in Ann Arbor, MI
2 Bedroom
$1,692
$1,394
+18% in Ann Arbor, MI
3 Bedroom
$1,812
$1,406
+22% in Ann Arbor, MI

Buying a Home

Median Home Value
$435,100
$232,400
+47% in Ann Arbor, MI

Income

Median Household Income
$81,089
$60,698
+25% in Ann Arbor, MI
Metro Median Wage (annual)
$55,380
$54,310
+2% in Ann Arbor, MI

People & Lifestyle

Median Age
27.7 yr
35.1 yr
+7.4 yr in Philadelphia, PA
Homeownership
45.6%
52.3%
+6.7 pp in Philadelphia, PA
Bachelor's+ (25+)
77.7%
34.6%
+43.1 pp in Ann Arbor, MI
Avg Commute
19.9 min
32.0 min
+12.1 min in Philadelphia, PA

Crime (per 100k/yr)

Violent Crime
311
917.1
+195% in Philadelphia, PA
Property Crime
1,744.5
4,615.3
+165% in Philadelphia, PA

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 Philadelphia, PA
Annual Precipitation
32.8 in
48.5 in
+15.7 in in Philadelphia, PA

Gas

Regular Gasoline
$3.85/gal
$3.94/gal
+2% in Philadelphia, PA

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

Public Transit

Base Fare (one-way)
—
$2.50

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

Utilities

Electricity (¢/kWh)
23.0
21.7
+5% in Ann Arbor, MI
Natural Gas ($/MCF)
$19.72
$26.08
+32% in Philadelphia, PA

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

Groceries

Milk (gal)
$4.31
$4.31
about equal
Bread (lb)
$1.66
$1.92
+16% in Philadelphia, PA
Eggs (doz)
$3.63
$2.19
+40% in Ann Arbor, MI
Ground Beef (lb)
$6.77
$6.90
+2% in Philadelphia, PA
Chicken (lb)
$2.10
$2.19
+4% in Philadelphia, PA
Bananas (lb)
$0.62
$0.69
+12% in Philadelphia, PA

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

State Taxes

Sales Tax (MI / PA)
6%
6%
about equal
Income Tax (top rate)
4.25%
3.07%
+1.2 pp in MI

Ann Arbor vs Philadelphia — FAQ

Is it cheaper to live in Ann Arbor or Philadelphia?
Philadelphia, PA is cheaper. Its monthly baseline of $1,430 (1BR rent + utilities) runs about 12% 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 Philadelphia?
To keep rent near the recommended 30% of gross income, you'd want to earn roughly $56,000 a year in Ann Arbor versus $48,000 in Philadelphia.
Which has lower taxes, Ann Arbor or Philadelphia?
Ann Arbor is taxed under Michigan's rules (a top state income tax rate of 4.25% and a 6% state sales tax); Philadelphia under Pennsylvania's (a top state income tax rate of 3.07% 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).