Living Cost Compare
Ann Arbor

Michigan

$1,630/mo est.

vs
Sacramento

California

$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 Sacramento, CA. Overall, Ann Arbor, MI is roughly 7% cheaper to live in day-to-day than Sacramento, CA, driven mainly by electricity costs.

Median household income is $81,089 in Ann Arbor, MI and $83,753 in Sacramento, CA — about 3% higher in Sacramento, CA. Michigan has a top state income tax rate of 4.25% and a 6% state sales tax; California has a top state income tax rate of 13.30% and a 7.25% state sales tax.

Ann Arbor, MI
Sacramento, CA

Rent

Studio
$1,274
$1,259
+1% in Ann Arbor, MI
1 Bedroom
$1,389
$1,418
+2% in Sacramento, CA
2 Bedroom
$1,692
$1,742
+3% in Sacramento, CA
3 Bedroom
$1,812
$1,973
+9% in Sacramento, CA

Buying a Home

Median Home Value
$435,100
$484,600
+11% in Sacramento, CA

Income

Median Household Income
$81,089
$83,753
+3% in Sacramento, CA
Metro Median Wage (annual)
$55,380
$59,750
+8% in Sacramento, CA

People & Lifestyle

Median Age
27.7 yr
35.7 yr
+8.0 yr in Sacramento, CA
Homeownership
45.6%
51.5%
+5.9 pp in Sacramento, CA
Bachelor's+ (25+)
77.7%
36.4%
+41.3 pp in Ann Arbor, MI
Avg Commute
19.9 min
25.6 min
+5.7 min in Sacramento, CA

Crime (per 100k/yr)

Violent Crime
311
756.6
+143% in Sacramento, CA
Property Crime
1,744.5
2,615.3
+50% in Sacramento, CA

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
61.0°F
+13.3°F in Sacramento, CA
Annual Precipitation
32.8 in
18.5 in
+14.3 in in Ann Arbor, MI

Gas

Regular Gasoline
$3.85/gal
$5.52/gal
+43% in Sacramento, CA

Area: Midwest (PADD 2) vs California.

Public Transit

Base Fare (one-way)
—
$2.50

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

Utilities

Electricity (¢/kWh)
23.0
34.7
+51% in Sacramento, CA
Natural Gas ($/MCF)
$19.72
$20.33
+3% in Sacramento, CA

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

Groceries

Milk (gal)
$4.31
$4.82
+12% in Sacramento, CA
Bread (lb)
$1.66
$2.04
+23% in Sacramento, CA
Eggs (doz)
$3.63
$2.19
+40% in Ann Arbor, MI
Ground Beef (lb)
$6.77
$7.36
+9% in Sacramento, CA
Chicken (lb)
$2.10
$2.01
+4% in Ann Arbor, MI
Bananas (lb)
$0.62
$0.70
+14% in Sacramento, CA

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

State Taxes

Sales Tax (MI / CA)
6%
7.25%
+1.3 pp in CA
Income Tax (top rate)
4.25%
13.30%
+9.1 pp in CA

Ann Arbor vs Sacramento — FAQ

Is it cheaper to live in Ann Arbor or Sacramento?
Ann Arbor, MI is cheaper. Its monthly baseline of $1,630 (1BR rent + utilities) runs about 7% below Sacramento, CA's $1,760, mainly because of electricity costs.
How much more do you need to earn to live in Ann Arbor than in Sacramento?
To keep rent near the recommended 30% of gross income, you'd want to earn roughly $56,000 a year in Ann Arbor versus $57,000 in Sacramento.
Which has lower taxes, Ann Arbor or Sacramento?
Ann Arbor is taxed under Michigan's rules (a top state income tax rate of 4.25% and a 6% state sales tax); Sacramento under California's (a top state income tax rate of 13.30% and a 7.25% 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).