Table of Contents
Michigan at a Glance
| Metric | Value | National Rank |
|---|---|---|
| Population (2024) | 10.0 million | 10th |
| Median household income | $66,986 | Below average |
| Median home price | $250,000 | Below average |
| Cost of living index | 90 | Below average |
| State income tax | 4.25% flat | Average |
| Sales tax | 6% | Average |
| Property tax (effective rate) | 1.38% | Above average |
Income and Housing by City
| City/Area | Median Income | Median Home Price | Median Rent (2BR) |
|---|---|---|---|
| Ann Arbor | $73,000 | $410,000 | $1,700 |
| Grand Rapids | $62,000 | $290,000 | $1,350 |
| Detroit (metro) | $58,000 | $225,000 | $1,200 |
| Detroit (city) | $37,000 | $90,000 | $1,000 |
| Lansing | $50,000 | $200,000 | $1,100 |
| Traverse City | $62,000 | $380,000 | $1,500 |
| Kalamazoo | $47,000 | $210,000 | $1,050 |
| Flint | $32,000 | $85,000 | $850 |
Michigan highlights:
- Detroit city has median home prices under $100K — among the cheapest in any major US city
- Ann Arbor is the outlier: university town with $410K median and higher COL
- Grand Rapids is the fastest-growing metro with balanced affordability
- Traverse City is a vacation/remote-work hotspot with rising prices
Taxes
Michigan has a simple 4.25% flat income tax plus some cities levy additional local income taxes (Detroit: 2.4% residents, 1.2% non-residents).
| Income | Federal | MI State Tax | City Tax (Detroit) | FICA | Take-Home |
|---|---|---|---|---|---|
| $75,000 | $8,760 | $3,188 | $1,800 | $5,738 | $55,515 |
| $100,000 | $13,615 | $4,250 | $2,400 | $7,650 | $72,085 |
Property tax warning: Michigan’s effective rate of 1.38% is above average, and some areas (Detroit, Wayne County) exceed 2%.
Michigan Pros and Cons
| Financial Pros | Financial Cons |
|---|---|
| 10% below national COL | Below-average median income |
| Very affordable housing outside Ann Arbor | High property taxes in some areas |
| No city income tax (most cities) | Auto insurance is very expensive |
| Great Lakes recreation | Cold winters (heating costs) |
| Growing tech/healthcare sectors | Some areas have declining population |
Related: Cost of Living by State | State Income Tax Rates | Average Rent by State
