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Quick answer

Ann Arbor costs $125/month less overall ($1,740 vs $1,865/mo). But Plano's None state income tax erases some of that gap — on an $80K salary, the tax difference is $3,400/year.

City Comparison · 2026

Ann Arbor vs Plano

Side-by-side on rent, home prices, taxes, walkability, jobs, and climate — with a straight verdict for each type of mover.

Last updated: April 23, 2026

Ann Arbor vs Plano at a Glance

MetricAnn ArborPlano
1BR Monthly Rent$1,250$1,750
2BR Monthly Rent$1,550$1,750
Median Home Price$485K$475K
Avg Utilities/mo$160$155
Avg Groceries/mo$330$310
Monthly Cost (1BR)$1,740$1,865
Walk Score75/10058/100
Transit Score52/10028/100
State Income Tax4.25%None

Monthly cost = 1BR rent + utilities + groceries for one person. ✓ marks the lower/better value.

Cost of Living: What the Numbers Actually Mean

Rent gap: Ann Arbor's 1BR averages $1,250/month vs $1,400 in Plano a $150/month difference, or $1,800/year. That's close enough that neighborhood choice within each city matters more than the city-level average.

State tax: Plano charges None state income tax vs 4.25% in Ann Arbor. On an $80K salary that's a $3,400/year difference. On $120K, the gap grows to $5,100 vs $0 — important context if you're choosing between tech job offers.

Home buying: Median homes in Plano are $475K vs $485K in Ann Arbor. At a 20% down payment, that's a $2,000 difference in upfront cash — significant at early-career savings rates.

Utilities: Ann Arbor utilities run $5 more per month than Plano. Factor this into your all-in monthly budget.

Walkability, Transit & Daily Life

Ann Arbor, MI

Walk Score75/100 — Very Walkable
Transit Score52/100 — Some Transit

Ann Arbor's walkability means you can genuinely live without a car in the right neighborhoods.

TOP NEIGHBORHOODS

Downtown / State StreetWalkable, vibrant, college vibe. State Street has shops, restaurants, bars. Walkable to UMich campus. Rents $1,400-1,700/month 1BR. Lively weekends but loud.
Central Campus / South UniversityNear UMich campus. Student rentals dominate. Rents $1,100-1,350/month 1BR (older homes). High turnover; party scene. 5-minute walk to campus.
North Campus / GeddesResidential, quieter. Families and graduate students. Older homes ($400-500K) with character. Tree-lined streets. 10-15 minute walk to campus.

Plano, TX

Walk Score58/100 — Somewhat Walkable
Transit Score28/100 — Minimal Transit

Plano is partially walkable in denser neighborhoods but car-dependent in most areas.

TOP NEIGHBORHOODS

Downtown Plano / Legacy DistrictBeing redeveloped with new lofts and shops. Walkable core (Walk Score 68). $1,500-1,800/month 1BR. Younger professionals. Still under-construction vibe.
Central PlanoEstablished, tree-lined, family-friendly. Parks and pools. Homes $450-600K. Schools are top-rated. 5-10 minute drive to downtown. Middle to upper-middle class.
North PlanoNewer suburbs (1990s-2000s). Subdivisions with HOAs and playgrounds. Homes $425-550K. Schools are good. 15-20 minute drive to downtown. Families with young kids.

Climate

Ann Arbor

Cold, snowy winters (15-30°F, 40-50 inches snow annually). Summers are mild (78-82°F, 55-65% humidity). Lake effect snow from Lake Michigan is significant.

Plano

Hot, humid subtropical. Summers (June-September) reach 95-98°F with 60-70% humidity. Winters are mild (50-65°F). Occasional ice storms; severe thunderstorms and tornado risk May-June.

Job Market

Ann Arbor top industries

Higher EducationHealthcareTechnologyResearch & Development

Plano top industries

TechnologyFinanceCorporate HeadquartersProfessional Services

Who Should Pick Which City

Move to Ann Arbor if…

  • You're a Students & alumni
  • You're a Academics & researchers
  • You're a Healthcare professionals
  • You're a Young professionals
  • You want to live without a car

Move to Plano if…

  • You're a Tech workers
  • You're a Corporate professionals
  • You're a Families seeking suburbs
  • You're a People avoiding state income tax
  • You want zero state income tax
  • You're buying a home and want more for your money

Frequently Asked Questions

Is Ann Arbor or Plano cheaper to live in?

Ann Arbor is cheaper overall. Monthly costs (1BR rent + utilities + groceries) run $1,740 in Ann Arbor vs $1,865 in Plano — a $125/month difference.

Which city is more walkable — Ann Arbor or Plano?

Ann Arbor is more walkable with a Walk Score of 75/100 vs 58/100. Plano is more car-dependent.

Ann Arbor vs Plano: which has lower state income tax?

Plano has lower state income tax (None). On an $80K salary, that saves $3,400/year vs Ann Arbor (4.25%).

Is Ann Arbor or Plano better for buying a home?

Plano has lower median home prices at $475K vs $485K in Ann Arbor — a $10,000 difference on the median home.