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Cost of Living: Worcester, MA vs Ann Arbor, MI

Wondering how far your dollar stretches in Worcester compared to Ann Arbor? 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

Worcester cost-of-living index is 116 vs 116 for Ann Arbor (US = 100). Median home: $380,000 vs $420,000. Median rent: $1,650/mo vs $1,730/mo.

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

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Worcester and Ann Arbor have similar costs of living
COL Index: Worcester 116 vs Ann Arbor 116 (national avg = 100)
Written by Jere Salmisto, Founder & Quantitative Systems Builder, CalcFi·Reviewed by CalcFi Editorial·Last reviewed 2026-04-19

Worcester vs Ann Arbor — At a Glance

WorcesterMetricAnn ArborDifference
116Cost of Living Index116+0.0%
$380,000Median Home Price$420,000+10.5%
$1,650Median Monthly Rent$1,730+4.8%
$71,400Median Household Income$78,600+10.1%
1.1%Property Tax Rate1.6%+50.9%
3.6%Unemployment Rate3.0%-16.7%
27 minAverage Commute22 min-18.5%
37Median Age31.2-15.7%
1,000,000Metro Population370,000-63.0%

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

Housing Comparison: Worcester vs Ann Arbor

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

Worcester

Median Home Price$380,000
Down Payment (20.0%)$76,000
Loan Amount$304,000
Principal & Interest$1,921/mo
Property Tax$336/mo
Insurance$111/mo
Monthly PITI$2,368/mo

Ann Arbor

Median Home Price$420,000
Down Payment (20.0%)$84,000
Loan Amount$336,000
Principal & Interest$2,124/mo
Property Tax$560/mo
Insurance$123/mo
Monthly PITI$2,806/mo

Rent & Affordability Ratios

Median Monthly Rent$1,650 vs $1,730 (+$80/mo)
Annual Rent Difference$960/yr more in Ann Arbor
Home Price-to-Income Ratio5.3x (Worcester) vs 5.3x (Ann Arbor)
Years to Save 20% Down (15% savings rate)7.1 yrs (Worcester) vs 7.1 yrs (Ann Arbor)

Buying a home in Worcester costs $2,368/month (PITI) compared to $2,806/month in Ann Arbor — a difference of $438/month or $5,256/year. The price-to-income ratio is 5.3x in Worcester versus 5.3x in Ann Arbor, suggesting Worcester is relatively more affordable for homebuyers relative to local incomes. At a 15% savings rate, it takes 7.1 years to save a down payment in Worcester compared to 7.1 years in Ann Arbor.

Tax Comparison: Worcester vs Ann Arbor

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

Tax CategoryWorcesterAnn Arbor
Gross Income$71,400$78,600
State Income Tax$3,350$3,094
Federal Income Tax$7,157$8,741
FICA (SS + Medicare)$5,462$6,013
Property Tax (on median home)$4,028/yr$6,720/yr
State Sales Tax Rate6.3%6.0%
Total Tax Burden$15,969 (22.4%)$17,848 (22.7%)
Take-Home Pay$55,431$60,752

On median household income, total taxes (federal + state + FICA) come to $15,969 in Worcester (22.4% effective) versus $17,848 in Ann Arbor (22.7% effective). After taxes, take-home pay is $55,431 in Worcester and $60,752 in Ann Arbor. Property taxes add $4,028/year on the median Worcester home versus $6,720/year in Ann Arbor.

Salary Equivalence: What Your Income Is Worth

A $71,400 salary in Worcester equals
$71,400
in Ann Arbor
A $78,600 salary in Ann Arbor equals
$78,600
in Worcester

These figures adjust for cost of living using the formula: adjusted = salary × (COL_destination / COL_origin). If you earn $71,400 in Worcester (COL 116) and relocate to Ann Arbor (COL 116), you would need $71,400 to maintain the same purchasing power. This means your salary should stay roughly the same.

Quality of Life: Worcester vs Ann Arbor

Average Commute
27 min
Worcester
22 min
Ann Arbor
5 min longer in Worcester
Unemployment Rate
3.6%
Worcester
3.0%
Ann Arbor
Ann Arbor lower
Metro Population
1.0M
Worcester
0.4M
Ann Arbor
Worcester is 2.7x larger

Beyond costs, quality of life matters. The average commute in Worcester is 27 minutes versus 22 minutes in Ann Arbor, a difference of 5 minutes each way. Ann Arbor's lower unemployment rate of 3.0% versus 3.6% suggests a stronger job market. Worcester skews slightly older with a median age of 37 vs 31.2 in Ann Arbor.

Other Cost of Living Comparisons

New York vs WorcesterCOL 187 vs 116Los Angeles vs WorcesterCOL 173 vs 116Chicago vs WorcesterCOL 114 vs 116Ann Arbor vs New YorkCOL 116 vs 187Ann Arbor vs Los AngelesCOL 116 vs 173Ann Arbor vs ChicagoCOL 116 vs 114

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Frequently Asked Questions

Is Worcester or Ann Arbor more expensive?

Worcester and Ann Arbor have very similar costs of living, with COL indices of 116 and 116 respectively (national average = 100). Day-to-day expenses, housing, and taxes are comparable between the two metro areas.

How much more does housing cost in Ann Arbor vs Worcester?

The median home price in Ann Arbor is $420,000, which is $40,000 more than Worcester's median of $380,000. Monthly rent follows a similar pattern: $1,730/month in Ann Arbor vs $1,650/month in Worcester, a difference of $80/month or $960/year.

What salary do I need in Ann Arbor to match my Worcester income?

To maintain the same standard of living, a $71,400 salary in Worcester is equivalent to $71,400 in Ann Arbor. This is based on the cost of living index ratio: Worcester's COL index of 116 vs Ann Arbor's 116. Conversely, $78,600 in Ann Arbor equals $78,600 in Worcester.

Which city has lower taxes, Worcester or Ann Arbor?

On a median household income, the combined federal, state, and FICA tax burden is $15,969 (22.4% effective rate) in Worcester vs $17,848 (22.7% effective rate) in Ann Arbor. Property taxes on the median home are $4,028/year in Worcester (1.1% rate) vs $6,720/year in Ann Arbor (1.6% rate). Sales tax rates are 6.3% in Massachusetts and 6.0% in Michigan.

What is the median household income in Worcester and Ann Arbor?

Worcester median household income: $71,400/yr. Ann Arbor median household income: $78,600/yr (Census ACS).

How does rent compare in Worcester vs Ann Arbor?

Median monthly rent: $1,650 in Worcester vs $1,730 in Ann Arbor. Annualized that is $19,800 vs $20,760.

Which city is better for remote workers, Worcester or Ann Arbor?

Worcester offers a lower cost of living (index 116 vs 116), which lets remote-workers keeping a coastal salary stretch further. Ann Arbor typically wins on amenities and labor-market depth.

Where does the data on this comparison come from?

Worcester and Ann Arbor 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 Worcester vs Ann Arbor 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 Worcester vs Ann Arbor 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

All City ComparisonsWorcester COL CalculatorAnn Arbor COL CalculatorSalary GuidesMortgage Affordability CalculatorRent vs Buy Calculator

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.