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Cost of Living Comparison for Madison, WI
Local data pre-filled
Madison's cost of living index is 102 — 2% more expensive than the national average. This factors in housing, groceries, utilities, transportation, and healthcare. Use this calculator to see how your purchasing power would change if you moved to another city.
✓ Calculator below is pre-filled with Madison local data
Data as of · Sources: Zillow, Census ACS, Tax Foundation, Freddie Mac
Wisconsin Financial Snapshot (2026) — Cost of Living Comparison
Cost-of-living index and median income anchor the budget math for the cost of living comparison in Wisconsin. Every row cites a primary public dataset. Numbers reflect the most recent vintage available; refresh cadence is documented in the methodology.
How the Cost of Living Comparison Math Works Under Wisconsin Law
Your cost of living comparison in Wisconsin is driven by the BEA Regional Price Parity (RPP) — a purchasing-power index where US = 100. The all-items RPP tells you how far a dollar goes statewide vs the national average; housing-only RPP isolates the rent/mortgage side, which is the single biggest budget line for most households[1].
When the all-items RPP is above 100, the same expense basket costs more to maintain in Wisconsin. The 50/30/20 rule (needs/wants/savings) bends toward needs in high-RPP states and toward savings in low-RPP states.
Calc-specific note: COL index normalises everything to US = 100. Housing RPP + all-items RPP are the two dimensions that move together.
Worked example — Wisconsin
Wisconsin's BEA all-items RPP measures how far a dollar goes vs US = 100. $100 of mainstream-basket spending in Wisconsin costs $(RPP) in the US average. Housing RPP is usually the biggest swing component — run the housing tile separately when comparing metros.
Local context: Madison, WI
Housing economics in Madison, WI. The median home value runs 23.8% above the U.S. baseline for Madison, WI is $443,056 per Zillow's home-value index. Median rent runs $1,673 a month per Zillow ZORI, cheaper than the national $1,850 baseline. Effective property tax sits at 1.80% of assessed value, meaningfully higher than the 0.99% national average tracked by the Tax Foundation. Lenders in Madison, WI have quoted 6.30% on the 30-year fixed product over the trailing four-week window per Freddie Mac PMMS — the prevailing posted rate before any borrower-specific lock-ins.
Income and tax climate. Wisconsin's top marginal state income tax bracket lands at 7.65% — compared to the volume-weighted national average around 4-5%. BEA's Regional Price Parity scores Madison, WI at 102.0 (national = 100), meaning a dollar in Madison, WI buys 98¢ of national purchasing power.
How Madison, WI's cost basis informs the comparison. The cost-of-living comparison calculator weights housing, transportation, food, healthcare, and miscellaneous expenses using BEA Regional Price Parity for shelter and Council for Community and Economic Research C2ER index components for non-shelter categories. Housing is the dominant swing factor in most cross-state comparisons; the next-largest driver is state and local tax burden. Madison, WI's housing index plus its tax overlay together typically explain 70-80% of the variance against any other location you might compare against.
Local context as of 2026-06-27. Live data sources are listed in the Sources section below; each metric carries its own retrieval date.
Madison versus the U.S. baseline
How does Madison, WI stack up against the national average on the metrics that drive the calculators on this page? The table below pairs the Madison, WI-specific reading against the U.S. baseline so you can see at a glance whether your local scenario runs above or below typical. Three to five percentage points of difference on most of these inputs translates into meaningful changes in calculator output — for example, a 50-basis-point difference in mortgage rate moves the monthly payment on a $400,000 30-year loan by roughly $130.
| Metric | Madison, WI | U.S. baseline | Difference |
|---|---|---|---|
| Median home value[zillow] | $443,056 | $358,000 | 23.8% |
| Median monthly rent[zillow] | $1,673 | $1,850 | -9.6% |
| Property tax (effective)[tax-foundation] | 1.80% | 0.99% | 81.8% |
| State top marginal income tax[tax-foundation] | 7.65% | ~4.08% (volume-weighted) | 3.6 pp |
| State cost-of-living index[bea-rpp] | 102.0 | 100.0 | 2.0 pts |
How to use the Cost of Living Comparison
Walk through using the Cost of Living Comparison with Madison, WI-specific defaults pre-loaded from primary sources.
- Enter your Madison numbersFill in the cost of living comparison inputs. Defaults reflect Madison, WI 2026: median home $443,056, median rent $1,673/mo, 1.80% effective property tax.
- Apply the local 2026 inputsThe median home value in Madison is $443,056 (Zillow ZHVI), with median monthly rent running $1,673/mo.
- Compare against Madison contextMonthly PITI on the $443,056 median home in Madison is ~$3,224/mo — vs a $1,673/mo median rent.
How Wisconsin Compares to Neighboring States
Moving one state over changes the cost of living comparison numbers. Compare median home value (Zillow ZHVI), top marginal income tax rate, effective property tax rate, and the BEA all-items Regional Price Parity across Wisconsin and its border states.
| State | Median home | Top inc tax | Prop tax rate | RPP (US=100) |
|---|---|---|---|---|
| Wisconsin (this page) | $295,000 | 7.65% | 1.85% | 93.2 |
| check Illinois | $275,000 | 4.95% | 2.23% | 98.8 |
| Iowa | $215,000 | 3.80% | 1.50% | 88.8 |
| Michigan equivalent | $245,000 | 4.25% | 1.58% | 94.3 |
| Minnesota side-by-side | $335,000 | 9.85% | 1.12% | 98.3 |
Sources: Zillow ZHVI[1], state Departments of Revenue / Tax Foundation[2], Tax Foundation property taxes[3], BEA Regional Price Parities[4].
What Changes Your Result in Wisconsin
- Wisconsin cost-of-living drag:Line-item costs in Wisconsin deviate from the US mean by whatever the BEA all-items RPP deviates from 100. Weight your budget toward the state average rather than the national average.
Related Calculations for Wisconsin
These calculators share inputs with the cost of living comparison formula, so pair them to pressure-test your answer from multiple angles.
- Wisconsin Rent Affordability Calculator — rent is the biggest COL line.
How Madison Compares to the National Average
Understanding how Madison stacks up helps you calibrate your financial planning.
| Metric | Madison, WI | US Average | Difference |
|---|---|---|---|
| Median Home Price | $443,056 | $420,800 | +5.3% |
| Median Monthly Rent | $1,673 | $1,713 | -2.3% |
| Median Household Income | $86,827 | $74,580 | +16.4% |
| Property Tax Rate | 1.80% | 1.10% | +63.6% |
| Cost of Living Index | 102 | 100 | +2.0% |
Sources: U.S. Census Bureau, BLS, Zillow, NAR (2024–2025). Green = favorable for residents; red = less favorable.
Madison Financial Snapshot
- Population (Metro)
- 680,000
- Unemployment
- 2.4%
- Avg Commute
- 22 min
- Median Age
- 31.6
- Price-to-Rent Ratio
- 22.1x
- Annual Property Tax
- $7,975
More Financial Calculators for Madison, WI
Frequently Asked Questions — Madison
- Can median-income households afford the median home in Madison?
- With a ~$3,224 monthly PITI and $86,827 median income, housing would consume ~44.6% of gross annual income. Qualifying under the 28% DTI rule requires ~$138,171 in annual income. Educational reference only.
- Is it better to rent or buy in Madison?
- Madison's price-to-rent ratio (22.1x) tilts toward renting — above 20x, buying is generally expensive relative to renting.
- What is the annual property tax bill on the median home in Madison?
- Approximately $7,975/yr at the 1.80% effective rate on the $443,056 median home. The national average effective rate is 1.07%.
- What share of median income goes to rent in Madison?
- The $1,673/mo median rent represents 23.1% of the $86,827 median household income. The recommended housing cost threshold is 30%; Madison falls within that guideline. Educational reference only.
- How much does commuting cost in Madison?
- Average commute time in Madison is 22 minutes per ACS. Estimated annual commute cost runs about $3,832 — a cost frequently overlooked when calculating true household affordability. Educational reference only.
- How does the cost of living in Madison compare to the national average?
- Madison's BEA RPP index is 102, 2% above the national baseline of 100. For a household earning the national median income of $77,540, this translates to ~$1,551/yr in purchasing power difference. Educational reference only.
- What is the median home price in Madison, WI?
- The median home price in Madison is $443,056 as of 2025–2026.
- What is the average rent in Madison?
- The median monthly rent in Madison, WI is $1,673.
- Where does Madison data on this page come from?
- Madison numbers are pulled from Zillow ZHVI/ZORI (home values, rent), the U.S. Census Bureau ACS (income, demographics), and Tax Foundation (property tax). Each value is timestamped on the page.
- How often is the Madison cost of living comparison updated?
- Source feeds (Zillow, Freddie Mac PMMS, Census ACS) are refreshed on their native cadence — hourly for mortgage rates, monthly for ZHVI/ZORI, annually for ACS. Page caches revalidate every 24 hours via Next.js ISR.
- Does the cost of living comparison replace professional advice?
- No. This calculator gives educational estimates using public Madison data and standard formulas. It is not personalized tax, legal, or investment advice. Consult a licensed professional for decisions with material consequences.
How we compute this — methodology
The Madison page uses local median home price ($443,056), median rent ($1,673/mo), and property tax rate (1.80%) alongside the calculator's client-side formula. Calculations run in your browser — no inputs are sent to a server.
Refresh cadence:home price (Zillow ZHVI) and rent (Zillow ZORI) are reviewed monthly when the source publishes. Property tax and cost-of-living figures refresh annually. The page's dateModified reflects the most recent retrievedAt across every sourced value rendered above.
Known limits: ZIP-level variance within Madison can be substantial — the figures shown are city-wide medians. For a precise property tax quote, consult your county assessor.
Sources
- Zillow Research — ZHVI (Zillow Home Value Index) + ZORI (Zillow Observed Rent Index), city-level. zillow.com/research/data. Retrieved 2026-06-13.
- U.S. Census Bureau — American Community Survey (ACS) 5-year estimates for median household income and population. census.gov/programs-surveys/acs.
- CalcFi state financial context — tips + first-time homebuyer programs compiled from each state's Housing Finance Authority (HFA) public pages. See
src/data/state-financial-context.ts. - Tax Foundation — state property tax effective rates and state/local sales tax rates. taxfoundation.org.
- Freddie Mac Primary Mortgage Market Survey (PMMS) — weekly national mortgage rate averages used by mortgage-related calculators. freddiemac.com/pmms.
- Bureau of Economic Analysis — Regional Price Parities by State — www.bea.gov/data/prices-inflation/regional-price-parities-state-and-metro-area. Retrieved 2026-06-13.
- HUD Fair Market Rents — 50th-percentile 2-bedroom FY — www.huduser.gov/portal/datasets/fmr.html. Retrieved 2026-06-13.
- U.S. Energy Information Administration — residential electricity / natural gas / gasoline — www.eia.gov. Retrieved 2026-06-13.
- BLS Occupational Employment and Wage Statistics (OEWS) — state-level occupational wages — www.bls.gov/oes. Retrieved 2026-06-13.
- Freddie Mac Primary Mortgage Market Survey (PMMS) — weekly national mortgage rates — www.freddiemac.com/pmms. Retrieved 2026-06-13.
- NAIC Dwelling Fire, Homeowners Owners, and Homeowners Tenants Insurance Report — content.naic.org/article/homeowners-insurance-report. Retrieved 2026-06-13.
- State Departments of Revenue — official bracket + deduction publications (one primary URL per state; linked in the brackets table below) — taxfoundation.org/data/all/state/state-income-tax-rates. Retrieved 2026-06-13.
- U.S. Department of Labor — State Minimum Wage Laws — www.dol.gov/agencies/whd/minimum-wage/state. Retrieved 2026-06-13.
- FRED (Federal Reserve Economic Data) — real median household income, unemployment, HPI, LFPR per state — fred.stlouisfed.org. Retrieved 2026-06-13.
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National reference: Cost Of Living Comparison Calculator