Michigan vs Ohio: which really costs more?
Two Rust Belt neighbors with flat taxes built differently.
Most of the gap here is income tax. Sales tax lands in much the same place in both, so what you keep from your pay is the part that really moves. The purchase they disagree about most is home purchase. After that it is car purchase and then wedding. Everything below is sorted the same way, biggest gap first, so the things that barely differ sink to the bottom where they belong.
Two Rust Belt neighbors with different flat-tax designs.
The dominant term is the income tax differential; the combined sales tax rates are within a rounding band of each other, so take-home rather than consumption drives the spread below. Largest absolute divergence by category: home purchase. Then car purchase, then wedding.
Michigan
- Income tax rate
- 4.25%
- On a $75,000 salary
- 3.92%
- Rank of 51
- 19
- Combined sales tax
- 6%
- Rank of 51
- 38
Ohio
- Income tax rate
- 2.75%
- On a $75,000 salary
- 1.79%
- Rank of 51
- 41
- Combined sales tax
- 7.29%
- Rank of 51
- 21
Beyond income and sales tax
Owning a home costs much the same in property tax here: 1.25% of its value each year in Michigan, 1.31% in Ohio. Neither state taxes what you leave behind when you die. At the pump, Michigan adds 52.4¢ of state tax to every gallon. Ohio adds 39¢ 38.5¢.
Effective property tax rates are within a tenth of a point: about 1.25% of market value in Michiganand about 1.31% in Ohio. Neither levies an estate tax. State gasoline excise: 52.4¢ per gallon in Michigan, 39¢ 38.5¢ in Ohio.
The income tax figure is what one person earning $75,000.00 pays to the state, as a share of that pay. The sales tax figure is the combined state and local rate. Both come from the same checked data the calculator uses.
Income tax is the effective state rate at $75,000 for a single filer, not a marginal rate. Sales tax is the combined state and local rate at each state's representative county where one is modeled, and a statewide average for the forty-five jurisdictions that carry no named county. Both figures come from the same verified datasets the calculator uses.
Michigan against Ohio
A $75,000 salary
| Measure | Michigan | Ohio |
|---|---|---|
| Take-home pay | $58,656 | $60,246 |
| Worth after local prices | $62,278 | $65,619 |
| Share of pay taxed | 21.79% | 19.67% |
| State sales tax | 6% | 5.75% |
| Groceries exempt here | Yes | Yes |
| Clothing exempt at $100 | No | No |
| Property tax rate | 1.25% | 1.31% |
| Price level | 94.2 | 91.8 |
| Housing prices | 78.9 | 72.1 |
| Fuel tax | 52.4¢ | 38.5¢ |
| Tobacco tax | $2.00 | $1.60 |
City income tax excluded. Sales-tax row: state-only. Exemptions: Michigan, Statewide average; Ohio, Statewide average. Clothing: one $100 item; higher prices can change tax.
Where each state is strong
A $75,000 salary
Further out is better on every axis. Axes use fixed national ranges, not the two states alone.
Where each state takes it
A $75,000 salary
- Income
- Sales
- Property
| Tax | Michigan | Ohio |
|---|---|---|
| Income, all levels | $16,344 | $14,754 |
| Sales, on that spending | $1,056 | $1,039 |
| Property, on that home | $2,508 | $2,628 |
Assumes 30% of take-home spent on taxable goods and a $200,000 home. Three bases, so never summed.
What gets taxed, in each
A $75,000 salary
Michigan
Statewide average
Ohio
Statewide average
- Sales tax
- Fuel
- Tobacco
| Category | Michigan | Ohio |
|---|---|---|
| Groceries | Exempt | Exempt |
| Clothing at $100 | 6% | 7.29% |
| Fuel | 52.4¢ | 38.5¢ |
| Tobacco | $2.00 | $1.60 |
Grocery and general rates use the locations named here. Clothing is one item priced at $100; a more expensive garment may be taxed differently. Fuel and tobacco have separate units and scales.
What you would need there
A $75,000 salary
| To match take-home only | $72,647 |
|---|---|
| You could take a cut of | −$4,538 |
| Prices in Ohio | 92 vs 94 |
State taxes and state price levels only. No city tax, and no housing market.
What things actually cost in each
These are the amounts you would need to earn before tax to pay for each thing, at a $75,000.00 salary. Biggest gaps first.
Gross income required at $75,000, using each category's default assumptions, sorted by the absolute difference between the two states.
| Category | Michigan | Ohio | Difference |
|---|---|---|---|
| Home purchase | $1,258,512 | $1,226,509 | $32,003 cheaper in Ohio |
| Car purchase | $139,124 | $136,832 | $2,292 cheaper in Ohio |
| Wedding | $48,150 | $47,639 | $511 cheaper in Ohio |
| Car payment or lease | $17,592 | $17,201 | $390 cheaper in Ohio |
| Coffee habit | $26,372 | $26,100 | $271 cheaper in Ohio |
| Funeral | $12,103 | $11,834 | $269 cheaper in Ohio |
| Phone plan | $10,424 | $10,193 | $231 cheaper in Ohio |
| Used car from a private seller | $19,244 | $19,046 | $198 cheaper in Ohio |
| Rent | $2,723 | $2,663 | $60 cheaper in Ohio |
| Jewelry | $5,613 | $5,555 | $58 cheaper in Ohio |
| Childcare | $1,664 | $1,627 | $37 cheaper in Ohio |
| Pet annual cost | $2,482 | $2,457 | $26 cheaper in Ohio |
| Furniture | $2,405 | $2,381 | $25 cheaper in Ohio |
| Hotel stay | $1,058 | $1,035 | $24 cheaper in Ohio |
| Laptop or phone purchase | $1,924 | $1,905 | $20 cheaper in Ohio |
| Major appliance | $1,764 | $1,746 | $18 cheaper in Ohio |
| Sofa bed | $1,604 | $1,587 | $17 cheaper in Ohio |
| Health insurance premium | $681 | $666 | $15 cheaper in Ohio |
| Mattress | $1,443 | $1,428 | $15 cheaper in Ohio |
| Winter tires | $1,443 | $1,428 | $15 cheaper in Ohio |
| Gift card | $605 | $592 | $13 cheaper in Ohio |
| Student loan payment | $605 | $592 | $13 cheaper in Ohio |
| Tires | $1,283 | $1,270 | $13 cheaper in Ohio |
| Vet visit | $545 | $533 | $12 cheaper in Ohio |
| Bicycle | $1,123 | $1,111 | $12 cheaper in Ohio |
| Espresso machine | $1,123 | $1,111 | $12 cheaper in Ohio |
| Domestic flight | $496 | $485 | $11 cheaper in Ohio |
| Rental car | $417 | $407 | $10 cheaper in Ohio |
| Office chair | $962 | $952 | $9.90 cheaper in Ohio |
| Theme park day | $815 | $806 | $8.95 cheaper in Ohio |
| Air conditioner | $802 | $794 | $8.26 cheaper in Ohio |
| Back-to-school clothes | $802 | $794 | $8.26 cheaper in Ohio |
| Games console | $802 | $794 | $8.26 cheaper in Ohio |
| Meal kit | $363 | $355 | $8.06 cheaper in Ohio |
| Lawn mower | $722 | $714 | $7.41 cheaper in Ohio |
| Utilities | $318 | $311 | $7.06 cheaper in Ohio |
| Camping gear | $682 | $675 | $7.04 cheaper in Ohio |
| Power tools | $641 | $635 | $6.61 cheaper in Ohio |
| Suit | $641 | $635 | $6.61 cheaper in Ohio |
| School uniform | $577 | $571 | $5.95 cheaper in Ohio |
| Weekly groceries | $265 | $259 | $5.88 cheaper in Ohio |
| Vacuum cleaner | $561 | $555 | $5.78 cheaper in Ohio |
| Car insurance | $250 | $244 | $5.55 cheaper in Ohio |
| Cookware | $481 | $476 | $4.97 cheaper in Ohio |
| Grocery delivery | $215 | $210 | $4.77 cheaper in Ohio |
| Storage unit | $197 | $192 | $4.38 cheaper in Ohio |
| Running shoes | $417 | $413 | $4.32 cheaper in Ohio |
| Luggage | $401 | $397 | $4.13 cheaper in Ohio |
| Birthday cake | $182 | $178 | $4.04 cheaper in Ohio |
| Work uniform | $353 | $349 | $3.62 cheaper in Ohio |
| Winter coat | $321 | $317 | $3.31 cheaper in Ohio |
| School supplies | $289 | $286 | $3 cheaper in Ohio |
| Dry cleaning | $61 | $63 | $2.98 cheaper in Michigan |
| Concert ticket | $220 | $217 | $2.60 cheaper in Ohio |
| Cannabis (legal states) | $107 | $105 | $2.37 cheaper in Ohio |
| Internet service | $106 | $104 | $2.37 cheaper in Ohio |
| Clothing | $192 | $190 | $1.98 cheaper in Ohio |
| Restaurant dinner | $154 | $152 | $1.57 cheaper in Ohio |
| Baby formula | $68 | $67 | $1.50 cheaper in Ohio |
| Costume | $144 | $143 | $1.50 cheaper in Ohio |
| Gas fill-up | $68 | $67 | $1.50 cheaper in Ohio |
| Haircut | $64 | $62 | $1.43 cheaper in Ohio |
| Swimwear | $136 | $135 | $1.41 cheaper in Ohio |
| Pet food | $96 | $95 | $1.03 cheaper in Ohio |
| Prescription refill | $45 | $44 | $1.02 cheaper in Ohio |
| Baby clothes | $88 | $87 | $0.91 cheaper in Ohio |
| Sunscreen | $88 | $87 | $0.91 cheaper in Ohio |
| Food delivery | $57 | $56 | $0.85 cheaper in Ohio |
| Coffee beans | $36 | $35 | $0.82 cheaper in Ohio |
| Pizza delivery | $60 | $59 | $0.80 cheaper in Ohio |
| First aid supplies | $72 | $71 | $0.75 cheaper in Ohio |
| Gym membership | $72 | $71 | $0.75 cheaper in Ohio |
| Streaming bundle | $72 | $71 | $0.75 cheaper in Ohio |
| Frozen meals | $33 | $33 | $0.73 cheaper in Ohio |
| Rideshare trip | $33 | $33 | $0.73 cheaper in Ohio |
| Toiletries | $64 | $63 | $0.66 cheaper in Ohio |
| Vitamins and supplements | $56 | $56 | $0.57 cheaper in Ohio |
| Deli sandwich | $53 | $52 | $0.54 cheaper in Ohio |
| Cinema ticket | $48 | $47 | $0.52 cheaper in Ohio |
| Books | $48 | $48 | $0.50 cheaper in Ohio |
| Bread and bakery | $21 | $21 | $0.49 cheaper in Ohio |
| Soft drinks | $39 | $38 | $0.42 cheaper in Ohio |
| Snack food | $18 | $18 | $0.40 cheaper in Ohio |
| Bottled water | $15 | $15 | $0.35 cheaper in Ohio |
| Bottled juice | $14 | $13 | $0.32 cheaper in Ohio |
| Over-the-counter medicine | $24 | $24 | $0.24 cheaper in Ohio |
| Energy drinks | $22 | $22 | $0.23 cheaper in Ohio |
| Candy | $19 | $19 | $0.20 cheaper in Ohio |
| Fast food meal | $19 | $19 | $0.20 cheaper in Ohio |
| Bar drink | $17 | $17 | $0.18 cheaper in Ohio |
| Cigarettes or vape | $14 | $14 | $0.13 cheaper in Ohio |
Across the 91 things we can price in both states, Ohio comes out cheaper more often. That is not the whole story. Housing, wages and property tax move far more than sales tax does, and none of them are in these numbers. See limitations.
Across the 91 categories computable in both states, Ohio is cheaper more often. ⚠️ This compares tax treatment alone: housing costs, prevailing wages and property tax vary far more between states than sales tax does, and none of them enter these figures. See limitations.
Questions people ask
Both of these tax income — so what actually separates them?
How much, not whether. about 2.12% separates the two effective rates, and behind that sit different bracket shapes and different deductions.
Which of these is actually cheaper?
The taxes point opposite ways. Whichever state wins on income loses on sales — a about 1.29% gap — so the answer changes with how much of your income you spend.
How much would moving between these two actually change?
Enough to be worth calculating rather than guessing. The gap between these two is wide on at least one levy, so the answer depends on your own income and spending rather than on a general rule — which is what the calculator above is for.
On what dimensions do two income-taxing states diverge?
Both states levy personal income tax, so divergence is in rate and structure rather than in existence. Effective rates differ by about 2.12% at this project's representative income; bracket thresholds, deduction levels and joint-filing treatment vary independently and can reverse the ordering at other income levels.
Why do the two levies rank these states differently?
The income and consumption levies rank these states in opposite directions, with a about 1.29% sales differential offsetting the income differential. Relative burden is therefore a function of the household's consumption share of income; no ordering holds across the full range, and single-figure comparisons implicitly assume one.
How material is this differential?
At least one levy differs materially between these states. Aggregate effect is income- and consumption-dependent and should be computed for the specific household rather than inferred from headline rates; the ordering can still reverse once property tax is included.