Cost of Living in Michigan
Things cost about ▼ 4% less in Michigan than the national average.
What Things Cost in Michigan
Compared to the US national average
See raw index numbers
US national average = 100. Source: BEA Regional Price Parities 2023.
Michigan has undergone a remarkable transformation. A decade after Detroit's bankruptcy, the state offers some of the best cost-of-living value in the Midwest. Grand Rapids has emerged as one of America's most livable mid-size cities, with a thriving healthcare and manufacturing economy, craft breweries, and housing prices that are a fraction of comparable cities elsewhere. Ann Arbor brings University of Michigan prestige and a cosmopolitan feel. Detroit itself has seen genuine revitalization in its core neighborhoods, with houses available at prices that would not buy a parking space in San Francisco. The statewide cost of living runs about 9% below the national average.
Michigan at a Glance
Taxes in Michigan
Michigan's state income tax tops out at 4.25% flat. The combined sales tax averages 6%. Property taxes run about 1.32% of home value, which on a $220,000 median home means roughly $2,904/year.
Cities in Michigan
Ranked from least to most expensive. Index 100 = national average.
Explore Michigan
FAQ About Michigan
Grand Rapids is consistently rated among the best mid-size cities in America. It has a strong economy (healthcare, manufacturing, food production), affordable housing with median prices around $280,000, excellent breweries and restaurants, and easy access to Lake Michigan beaches. The cost of living is below the national average. The main trade-offs are cold winters and a smaller cultural scene compared to a major metro.
Extremely. Detroit has some of the lowest housing costs of any major American city, with median home prices well under $95,900 in many neighborhoods. The revitalized core (Midtown, Corktown, downtown) is more expensive but still affordable by big-city standards. The 2.4% city income tax is a unique cost factor. The city has real challenges with services and safety in some areas, but the affordability is genuine.
Michigan has a flat 4.25% state income tax. Most cities have no local income tax, but Detroit charges 2.4% for residents. Sales tax is 6%. Property taxes average about 1.38%, which is above the national average and can be a significant ongoing cost for homeowners. Auto insurance, while recently reformed, remains more expensive than the national average.