Michigan, known as the "Great Lakes State", is a very affordable Great Lakes state with housing well below national average. Here is everything you need to know about the cost of living in the Great Lakes State — from housing and groceries to taxes, utilities, childcare, and what salary you actually need.
Here is what a typical month costs in Michigan for a single person earning the median income of $63,400/year:
Each category shows how Michigan compares to the national average. Green means cheaper, yellow means similar, orange/red means more expensive.
Adjust your salary to see a detailed monthly budget breakdown for living in Michigan.
Select a state to see how much salary you would need there to maintain the same lifestyle you have in Michigan.
The most popular cities for residents and newcomers in Michigan:
Housing is the single biggest expense in Michigan, as it is everywhere. The median home price in Michigan is $235,000, and the median rent for a one-bedroom apartment is $950/month. With a housing cost index of 73, Michigan housing is 27% cheaper than the national average.
Housing in Michigan is a genuine advantage. The low cost of housing frees up income for savings, investments, and discretionary spending that residents of expensive states simply cannot afford.
Michigan has a state income tax rate of 4.25%. On the median household income of $63,400, you will pay approximately $2,695/year in state income tax ($225/month). This is below the national average — a tax advantage for Michigan residents.
The average single person in Michigan spends approximately $385/month on groceries. A family of four can expect to spend $963-$1,155/month. The food cost index of 93 means groceries in Michigan are 7% below the national average.
Gas prices in Michigan average $3.25/gallon. For the average commuter driving 15,000 miles/year at 25 MPG, that is roughly $1,950/year in fuel costs.
Michigan healthcare costs are 5% below the national average (index: 95). The average annual healthcare cost per person in Michigan is approximately $5,700 including premiums and out-of-pocket expenses. Employer-sponsored health insurance covers the majority of working adults.
Infant daycare in Michigan averages $900/month ($10,800/year). This is a substantial but manageable expense for dual-income households. Many families in Michigan find that one parent staying home is more cost-effective when two or more children need daycare.
Michigan is an excellent choice for anyone prioritizing affordability. Your dollar stretches 11% further here than the national average. The trade-off may include fewer big-city amenities in some areas, but cities like Detroit and Grand Rapids offer a good balance of affordability and quality of life.
See all Michigan financial calculators:
Michigan (MI) has a cost of living index of 89, meaning it is 11% cheaper than the US average. Housing is the biggest factor with an index of 73. The median rent is $950/month and the median home price is $235,000. Michigan ranks #9 out of 50 states for affordability (1 = cheapest).
For a single person, a comfortable salary in Michigan is approximately $82,420/year ($6,868/month). For a family of four, aim for $139,480/year. This covers housing at 30% of income, groceries ($385/mo), transportation, healthcare, and a 15% savings rate. The median household income in Michigan is $63,400.
The median rent for a one-bedroom apartment in Michigan is approximately $950/month. A two-bedroom averages $1,283/month. Rent varies significantly by city: Detroit, Grand Rapids, Ann Arbor are the most popular metro areas. Housing in Michigan is affordable compared to the national average.
Michigan is an excellent choice for affordability. With a cost of living 11% below the national average and median rent of just $950/month, your money goes significantly further here. Top cities include Detroit, Grand Rapids, Ann Arbor.
The most affordable areas in Michigan are typically smaller cities and rural areas away from the major metros. Within Michigan, costs can vary 20-40% between the most expensive city (Detroit metro) and more affordable areas. Lansing and Kalamazoo tend to offer lower costs while still providing good amenities and job opportunities.
The average monthly grocery bill in Michigan for a single person is approximately $385 ($963 for a family of four). Michigan food costs are 7% below the national average. Shopping at Walmart, Aldi, and local discount stores can reduce this by 15-25%.
The average monthly electric bill in Michigan is approximately $130. Total utilities (electric, gas, water, internet) average $286/month. Michigan utilities are 1% above the national average. Utility costs are manageable for most households.
Michigan has a state income tax rate of 4.25%. On the median household income of $63,400, that is approximately $2,695/year in state income tax. This is below the national average — a tax advantage.