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Cost of Living: Madison, WI vs Milwaukee, WI

Wondering how far your dollar stretches in Madison compared to Milwaukee? Below we break down housing costs, rent, taxes, income, and quality of life using 2026 data so you can make an informed relocation or remote-work decision. Every number is computed from Census, BLS, and Zillow data specific to these two metro areas.

TL;DR

Madison cost-of-living index is 102 vs 90 for Milwaukee (US = 100). Median home: $380,000 vs $225,000. Median rent: $1,499/mo vs $1,195/mo.

Source: Census ACS · Zillow ZHVI/ZORI · BEA RPP, 2026

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Milwaukee is 11.8% cheaper than Madison
COL Index: Madison 102 vs Milwaukee 90 (national avg = 100)
Written by Jere Salmisto, Founder & Quantitative Systems Builder, CalcFi·Reviewed by CalcFi Editorial·Last reviewed 2026-04-19

Madison vs Milwaukee — At a Glance

MadisonMetricMilwaukeeDifference
102Cost of Living Index90-11.8%
$380,000Median Home Price$225,000-40.8%
$1,499Median Monthly Rent$1,195-20.3%
$74,200Median Household Income$56,400-24.0%
1.8%Property Tax Rate1.8%+0.0%
2.4%Unemployment Rate4.6%+91.7%
22 minAverage Commute24 min+9.1%
31.6Median Age33.4+5.7%
680,000Metro Population1,590,000+133.8%

Data sourced from Census Bureau, BLS, Zillow, and ApartmentAdvisor (2024-2025). COL Index: 100 = national average.

Housing Comparison: Madison vs Milwaukee

Monthly mortgage assumes 6.5% interest, 30-year fixed, 20.0%down payment. PITI includes principal, interest, property tax, and homeowner's insurance.

Madison

Median Home Price$380,000
Down Payment (20.0%)$76,000
Loan Amount$304,000
Principal & Interest$1,921/mo
Property Tax$570/mo
Insurance$111/mo
Monthly PITI$2,602/mo

Milwaukee

Median Home Price$225,000
Down Payment (20.0%)$45,000
Loan Amount$180,000
Principal & Interest$1,138/mo
Property Tax$337/mo
Insurance$66/mo
Monthly PITI$1,541/mo

Rent & Affordability Ratios

Median Monthly Rent$1,499 vs $1,195 (-$304/mo)
Annual Rent Difference$3,648/yr more in Madison
Home Price-to-Income Ratio5.1x (Madison) vs 4.0x (Milwaukee)
Years to Save 20% Down (15% savings rate)6.8 yrs (Madison) vs 5.3 yrs (Milwaukee)

Buying a home in Madison costs $2,602/month (PITI) compared to $1,541/month in Milwaukee — a difference of $1,061/month or $12,732/year. The price-to-income ratio is 5.1x in Madison versus 4.0x in Milwaukee, suggesting Milwaukee is relatively more affordable for homebuyers relative to local incomes. At a 15% savings rate, it takes 6.8 years to save a down payment in Madison compared to 5.3 years in Milwaukee.

Tax Comparison: Madison vs Milwaukee

Estimated on each city's median household income, single filer, standard deduction, 2025 rates.

Tax CategoryMadisonMilwaukee
Gross Income$74,200$56,400
State Income Tax$2,780$1,837
Federal Income Tax$7,773$4,639
FICA (SS + Medicare)$5,676$4,315
Property Tax (on median home)$6,840/yr$4,050/yr
State Sales Tax Rate5.0%5.0%
Total Tax Burden$16,229 (21.9%)$10,791 (19.1%)
Take-Home Pay$57,971$45,609

On median household income, total taxes (federal + state + FICA) come to $16,229 in Madison (21.9% effective) versus $10,791 in Milwaukee (19.1% effective). After taxes, take-home pay is $57,971 in Madison and $45,609 in Milwaukee. Property taxes add $6,840/year on the median Madison home versus $4,050/year in Milwaukee.

Salary Equivalence: What Your Income Is Worth

A $74,200 salary in Madison equals
$65,471
in Milwaukee
A $56,400 salary in Milwaukee equals
$63,920
in Madison

These figures adjust for cost of living using the formula: adjusted = salary × (COL_destination / COL_origin). If you earn $74,200 in Madison (COL 102) and relocate to Milwaukee (COL 90), you would need $65,471 to maintain the same purchasing power. This means you can take a pay cut of $8,729 and still maintain your lifestyle in Milwaukee.

Quality of Life: Madison vs Milwaukee

Average Commute
22 min
Madison
24 min
Milwaukee
2 min shorter in Madison
Unemployment Rate
2.4%
Madison
4.6%
Milwaukee
Madison lower
Metro Population
0.7M
Madison
1.6M
Milwaukee
Milwaukee is 2.3x larger

Beyond costs, quality of life matters. The average commute in Madison is 22 minutes versus 24 minutes in Milwaukee, a difference of 2 minutes each way. Madison's lower unemployment rate of 2.4% versus 4.6% suggests a stronger job market. Milwaukee skews slightly older with a median age of 33.4 vs 31.6 in Madison.

Other Cost of Living Comparisons

Madison vs New YorkCOL 102 vs 187Los Angeles vs MadisonCOL 173 vs 102Chicago vs MadisonCOL 114 vs 102Milwaukee vs New YorkCOL 90 vs 187Los Angeles vs MilwaukeeCOL 173 vs 90Chicago vs MilwaukeeCOL 114 vs 90

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Frequently Asked Questions

Is Madison or Milwaukee more expensive?

Madison is 11.8% more expensive than Milwaukee overall. Madison has a cost of living index of 102 compared to 90 for Milwaukee (national average = 100). The biggest difference is housing: the median home costs $380,000 in Madison vs $225,000 in Milwaukee.

How much more does housing cost in Madison vs Milwaukee?

The median home price in Madison is $380,000, which is $155,000 more than Milwaukee's median of $225,000. Monthly rent follows a similar pattern: $1,499/month in Madison vs $1,195/month in Milwaukee, a difference of $304/month or $3,648/year.

What salary do I need in Milwaukee to match my Madison income?

To maintain the same standard of living, a $74,200 salary in Madison is equivalent to $65,471 in Milwaukee. This is based on the cost of living index ratio: Madison's COL index of 102 vs Milwaukee's 90. Conversely, $56,400 in Milwaukee equals $63,920 in Madison.

Which city has lower taxes, Madison or Milwaukee?

On a median household income, the combined federal, state, and FICA tax burden is $16,229 (21.9% effective rate) in Madison vs $10,791 (19.1% effective rate) in Milwaukee. Property taxes on the median home are $6,840/year in Madison (1.8% rate) vs $4,050/year in Milwaukee (1.8% rate). Sales tax rates are 5.0% in Wisconsin and 5.0% in Wisconsin.

What is the median household income in Madison and Milwaukee?

Madison median household income: $74,200/yr. Milwaukee median household income: $56,400/yr (Census ACS).

How does rent compare in Madison vs Milwaukee?

Median monthly rent: $1,499 in Madison vs $1,195 in Milwaukee. Annualized that is $17,988 vs $14,340.

Which city is better for remote workers, Madison or Milwaukee?

Milwaukee offers a lower cost of living (index 90 vs 102), which lets remote-workers keeping a coastal salary stretch further. Madison typically wins on amenities and labor-market depth.

Where does the data on this comparison come from?

Madison and Milwaukee numbers are pulled from Zillow ZHVI/ZORI (home values, rent), the U.S. Census Bureau ACS (income, demographics), and BEA RPP (cost-of-living index). Each value is timestamped on the page.

How often is this Madison vs Milwaukee comparison updated?

Source feeds (Zillow, Freddie Mac PMMS, Census ACS, BEA RPP) are refreshed on their native cadence. Page caches revalidate every 24 hours via Next.js ISR.

Does this comparison replace tax or financial advice?

No. The Madison vs Milwaukee cost-of-living page is educational reference using public data and standard formulas. It is not personalized tax, legal, or investment advice. Consult a licensed professional for material decisions.

Explore More

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Sources & Citations

  1. Zillow Research — ZHVI (home values) & ZORI (observed rent index) — zillow.com/research/data
  2. U.S. Census Bureau — American Community Survey (ACS) 5-year estimates — census.gov/acs
  3. Bureau of Economic Analysis — Regional Price Parities by state and MSA — bea.gov/rpp
  4. Tax Foundation — effective state and local tax rates — taxfoundation.org
  5. Freddie Mac PMMS — weekly national average mortgage rates — freddiemac.com/pmms
  6. Internal Revenue Service — federal income tax brackets and standard deduction — irs.gov
  7. U.S. Bureau of Labor Statistics — unemployment and wage statistics — bls.gov
Methodology & Assumptions

Home prices use Zillow Home Value Index (ZHVI)[1]; rents use Zillow Observed Rent Index (ZORI)[1]. Median household income comes from the Census ACS 5-year estimates[2].

COL indices use the BEA Regional Price Parity methodology[3], normalized so 100 = national average.

Property tax rates are effective rates from the Tax Foundation[4], expressed as % of owner-occupied home value. Mortgage estimates assume 6.5% fixed rate[5], 30-year term, 20.0% down, $1,800/yr homeowners insurance.

Federal tax calculations[6] assume single filer, standard deduction. State tax uses the top marginal rate times taxable income after the state standard deduction. FICA = 6.2% Social Security (up to wage base) + 1.45% Medicare.

Salary equivalence uses adjusted = salary × (COL_destination / COL_origin). This captures cost-of-living shift but not state income tax differences.

Unemployment figures are the most recent monthly MSA-level readings from the BLS LAUS series[7].

Last reviewed is computed from the maximum retrievedAt across every source this page consumes.

City data from Census Bureau[2], BLS[7], and Zillow[1] (2024-2025). Tax calculations use 2025 IRS rates[6], single filer, standard deduction. Mortgage estimates assume 6.5% PMMS rate[5], 30-year term, 20.0% down. COL Index: 100 = national average[3]. Last reviewed 2026-04-19.