Cost of Living in Ann Arbor, MI

How far does a $70,000 salary go in Ann Arbor? Estimated income taxes on that gross salary total approximately $10,216 per year — combining federal taxes with Michigan's state income tax. Subtract rent for a 2-bedroom apartment ($1,656/month based on HUD Fair Market Rents for the Ann Arbor metro area) and the estimated annual take-home is $39,912, or roughly $3,326 per month for everything else: food, transportation, savings, and discretionary spending.

The Ann Arbor metro has a cost of living index of 112.1 according to the Bureau of Economic Analysis Regional Price Parities (national average = 100). At 12% above average, Ann Arbor is a noticeably expensive metro — groceries, services, and everyday purchases cost more than in most of the country.

At a $70,000 salary, the estimated 2-bedroom rent in Ann Arbor represents approximately 28% of gross income. That approaches the 30% threshold commonly used to define affordability. A smaller unit or a higher salary would improve the picture.