Is it cheaper to live in Madison or Salem?

Salem, OR is cheaper. Its monthly baseline of $1,170 (1BR rent + utilities) runs about 17% below Madison, WI's $1,410, mainly because of rent.

How much more do you need to earn to live in Madison than in Salem?

To keep rent near the recommended 30% of gross income, you'd want to earn roughly $49,000 a year in Madison versus $40,000 in Salem.

Which has lower taxes, Madison or Salem?

Madison is taxed under Wisconsin's rules (a top state income tax rate of 7.65% and a 5% state sales tax); Salem under Oregon's (a top state income tax rate of 9.90% and no state sales tax).

Madison vs Salem Cost of Living 2026

Madison

Wisconsin

$1,410/mo est.

Salem

Oregon

$1,170/mo est.

Monthly estimate = 1BR rent + electricity + gas

A one-person monthly baseline (1BR rent plus typical utilities) runs $1,410 in Madison, WI versus $1,170 in Salem, OR. Overall, Salem, OR is roughly 17% cheaper to live in day-to-day than Madison, WI, driven mainly by rent.

Median household income is $76,983 in Madison, WI and $71,900 in Salem, OR — about 7% higher in Madison, WI. Wisconsin has a top state income tax rate of 7.65% and a 5% state sales tax; Oregon has a top state income tax rate of 9.90% and no state sales tax.

Madison, WI

Salem, OR

Rent

Studio

$1,018

$1,075

+6% in Salem, OR

1 Bedroom

$1,219

$989

+19% in Madison, WI

2 Bedroom

$1,432

$1,337

+7% in Madison, WI

3 Bedroom

$1,766

$1,778

+1% in Salem, OR

Buying a Home

Median Home Value

$346,900

$382,400

+10% in Salem, OR

Income

Median Household Income

$76,983

$71,900

+7% in Madison, WI

Metro Median Wage (annual)

$58,080

$55,310

+5% in Madison, WI

People & Lifestyle

Median Age

31.8 yr

35.7 yr

+3.9 yr in Salem, OR

Homeownership

46.6%

55.7%

+9.1 pp in Salem, OR

Bachelor's+ (25+)

59.2%

31.4%

+27.8 pp in Madison, WI

Avg Commute

19.4 min

22.4 min

+3.0 min in Salem, OR

Crime (per 100k/yr)

Violent Crime

259.5

540.6

+108% in Salem, OR

Property Crime

1,884.5

2,878.6

+53% in Salem, OR

FBI Crime Data Explorer. Offenses per 100,000 residents per year; agency reporting practices vary, so this is approximate.

Climate

Avg Annual Temperature

46.5°F

53.0°F

+6.5°F in Salem, OR

Annual Precipitation

34.5 in

39.7 in

+5.2 in in Salem, OR

Gas

Regular Gasoline

$3.94/gal

$5.09/gal

+29% in Salem, OR

Area: Midwest (PADD 2) vs West Coast (PADD 5).

Utilities

Electricity (¢/kWh)

19.7

16.3

+18% in Madison, WI

Natural Gas ($/MCF)

$11.79

$20.59

+75% in Salem, OR

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

Groceries

Milk (gal)

$4.31

$4.82

+12% in Salem, OR

Bread (lb)

$1.66

$2.04

+23% in Salem, OR

Eggs (doz)

$3.63

$2.19

+40% in Madison, WI

Ground Beef (lb)

$6.77

$7.36

+9% in Salem, OR

Chicken (lb)

$2.10

$2.01

+4% in Madison, WI

Bananas (lb)

$0.62

$0.70

+14% in Salem, OR

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

State Taxes

Sales Tax (WI / OR)

None

+5.0 pp in WI

Income Tax (top rate)

7.65%

9.90%

+2.3 pp in OR

Madison vs Salem — FAQ

Is it cheaper to live in Madison or Salem?: Salem, OR is cheaper. Its monthly baseline of $1,170 (1BR rent + utilities) runs about 17% below Madison, WI's $1,410, mainly because of rent.
How much more do you need to earn to live in Madison than in Salem?: To keep rent near the recommended 30% of gross income, you'd want to earn roughly $49,000 a year in Madison versus $40,000 in Salem.
Which has lower taxes, Madison or Salem?: Madison is taxed under Wisconsin's rules (a top state income tax rate of 7.65% and a 5% state sales tax); Salem under Oregon's (a top state income tax rate of 9.90% and no 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).