Is it cheaper to live in Ann Arbor or Tacoma?

Tacoma, WA is cheaper. Its monthly baseline of $1,500 (1BR rent + utilities) runs about 8% below Ann Arbor, MI's $1,630, mainly because of electricity costs.

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

To keep rent near the recommended 30% of gross income, you'd want to earn roughly $56,000 a year in Ann Arbor versus $53,000 in Tacoma.

Which has lower taxes, Ann Arbor or Tacoma?

Ann Arbor is taxed under Michigan's rules (a top state income tax rate of 4.25% and a 6% state sales tax); Tacoma under Washington's (no state income tax and a 6.5% state sales tax).

Ann Arbor vs Tacoma Cost of Living 2026

Ann Arbor

Michigan

$1,630/mo est.

Tacoma

Washington

$1,500/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 $1,500 in Tacoma, WA. Overall, Tacoma, WA is roughly 8% cheaper to live in day-to-day than Ann Arbor, MI, driven mainly by electricity costs.

Median household income is $81,089 in Ann Arbor, MI and $83,857 in Tacoma, WA — about 3% higher in Tacoma, WA. Michigan has a top state income tax rate of 4.25% and a 6% state sales tax; Washington has no state income tax and a 6.5% state sales tax.

Ann Arbor, MI

Tacoma, WA

Rent

Studio

$1,274

$1,178

+8% in Ann Arbor, MI

1 Bedroom

$1,389

$1,332

+4% in Ann Arbor, MI

2 Bedroom

$1,692

$1,693

+0% in Tacoma, WA

3 Bedroom

$1,812

$2,094

+16% in Tacoma, WA

Buying a Home

Median Home Value

$435,100

$454,600

+4% in Tacoma, WA

Income

Median Household Income

$81,089

$83,857

+3% in Tacoma, WA

Metro Median Wage (annual)

$55,380

$72,610

+31% in Tacoma, WA

People & Lifestyle

Median Age

27.7 yr

37.3 yr

+9.6 yr in Tacoma, WA

Homeownership

45.6%

56.5%

+10.9 pp in Tacoma, WA

Bachelor's+ (25+)

77.7%

33.5%

+44.2 pp in Ann Arbor, MI

Avg Commute

19.9 min

29.0 min

+9.1 min in Tacoma, WA

Crime (per 100k/yr)

Violent Crime

311

1,064.4

+242% in Tacoma, WA

Property Crime

1,744.5

5,695.2

+226% in Tacoma, WA

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

52.1°F

+4.4°F in Tacoma, WA

Annual Precipitation

32.8 in

43.0 in

+10.2 in in Tacoma, WA

Gas

Regular Gasoline

$3.85/gal

$5.26/gal

+37% in Tacoma, WA

Area: Midwest (PADD 2) vs Washington.

Utilities

Electricity (¢/kWh)

23.0

14.9

+35% in Ann Arbor, MI

Natural Gas ($/MCF)

$19.72

$21.34

+8% in Tacoma, WA

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

Groceries

Milk (gal)

$4.31

$4.82

+12% in Tacoma, WA

Bread (lb)

$1.66

$2.04

+23% in Tacoma, WA

Eggs (doz)

$3.63

$2.19

+40% in Ann Arbor, MI

Ground Beef (lb)

$6.77

$7.36

+9% in Tacoma, WA

Chicken (lb)

$2.10

$2.01

+4% in Ann Arbor, MI

Bananas (lb)

$0.62

$0.70

+14% in Tacoma, WA

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

State Taxes

Sales Tax (MI / WA)

6.5%

+0.5 pp in WA

Income Tax (top rate)

4.25%

None

+4.3 pp in MI

Ann Arbor vs Tacoma — FAQ

Is it cheaper to live in Ann Arbor or Tacoma?: Tacoma, WA is cheaper. Its monthly baseline of $1,500 (1BR rent + utilities) runs about 8% below Ann Arbor, MI's $1,630, mainly because of electricity costs.
How much more do you need to earn to live in Ann Arbor than in Tacoma?: To keep rent near the recommended 30% of gross income, you'd want to earn roughly $56,000 a year in Ann Arbor versus $53,000 in Tacoma.
Which has lower taxes, Ann Arbor or Tacoma?: Ann Arbor is taxed under Michigan's rules (a top state income tax rate of 4.25% and a 6% state sales tax); Tacoma under Washington's (no state income tax and a 6.5% 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).