Is it cheaper to live in Ann Arbor or Worcester?

Worcester, MA is cheaper. Its monthly baseline of $1,340 (1BR rent + utilities) runs about 18% 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 Worcester?

To keep rent near the recommended 30% of gross income, you'd want to earn roughly $56,000 a year in Ann Arbor versus $41,000 in Worcester.

Which has lower taxes, Ann Arbor or Worcester?

Ann Arbor is taxed under Michigan's rules (a top state income tax rate of 4.25% and a 6% state sales tax); Worcester under Massachusetts's (a top state income tax rate of 9.00% and a 6.25% state sales tax).

Ann Arbor vs Worcester Cost of Living 2026

Ann Arbor

Michigan

$1,630/mo est.

Worcester

Massachusetts

$1,340/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 $1,340 in Worcester, MA. Overall, Worcester, MA is roughly 18% 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 $67,544 in Worcester, MA — about 17% higher in Ann Arbor, MI. Michigan has a top state income tax rate of 4.25% and a 6% state sales tax; Massachusetts has a top state income tax rate of 9.00% and a 6.25% state sales tax.

Ann Arbor, MI

Worcester, MA

Rent

Studio

$1,274

$1,087

+15% in Ann Arbor, MI

1 Bedroom

$1,389

$1,028

+26% in Ann Arbor, MI

2 Bedroom

$1,692

$1,476

+13% in Ann Arbor, MI

3 Bedroom

$1,812

$1,675

+8% in Ann Arbor, MI

Buying a Home

Median Home Value

$435,100

$339,500

+22% in Ann Arbor, MI

Income

Median Household Income

$81,089

$67,544

+17% in Ann Arbor, MI

Metro Median Wage (annual)

$55,380

$57,830

+4% in Worcester, MA

People & Lifestyle

Median Age

27.7 yr

34.1 yr

+6.4 yr in Worcester, MA

Homeownership

45.6%

42.4%

+3.2 pp in Ann Arbor, MI

Bachelor's+ (25+)

77.7%

34.1%

+43.6 pp in Ann Arbor, MI

Avg Commute

19.9 min

25.1 min

+5.2 min in Worcester, MA

Crime (per 100k/yr)

Violent Crime

311

640.2

+106% in Worcester, MA

Property Crime

1,744.5

1,580.3

+9% in Ann Arbor, MI

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

47.9°F

+0.2°F in Worcester, MA

Annual Precipitation

32.8 in

48.1 in

+15.3 in in Worcester, MA

Gas

Regular Gasoline

$3.85/gal

$4.07/gal

+6% in Worcester, MA

Area: Midwest (PADD 2) vs Massachusetts.

Utilities

Electricity (¢/kWh)

23.0

29.6

+29% in Worcester, MA

Natural Gas ($/MCF)

$19.72

$30.66

+55% in Worcester, MA

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 Worcester, MA

Eggs (doz)

$3.63

$2.19

+40% in Ann Arbor, MI

Ground Beef (lb)

$6.77

$6.90

+2% in Worcester, MA

Chicken (lb)

$2.10

$2.19

+4% in Worcester, MA

Bananas (lb)

$0.62

$0.69

+12% in Worcester, MA

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

State Taxes

Sales Tax (MI / MA)

6.25%

+0.3 pp in MA

Income Tax (top rate)

4.25%

9.00%

+4.8 pp in MA

Ann Arbor vs Worcester — FAQ

Is it cheaper to live in Ann Arbor or Worcester?: Worcester, MA is cheaper. Its monthly baseline of $1,340 (1BR rent + utilities) runs about 18% 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 Worcester?: To keep rent near the recommended 30% of gross income, you'd want to earn roughly $56,000 a year in Ann Arbor versus $41,000 in Worcester.
Which has lower taxes, Ann Arbor or Worcester?: Ann Arbor is taxed under Michigan's rules (a top state income tax rate of 4.25% and a 6% state sales tax); Worcester under Massachusetts's (a top state income tax rate of 9.00% and a 6.25% 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).