| Index | Madison | Wisconsin | National |
| Cost of living | 111 | 96 | 100 |
| Groceries | 99 | 99 | 100 |
| Health care | 97 | 98 | 100 |
| Housing | 138 | 89 | 100 |
| Transportation | 96 | 98 | 100 |
| Utilities | 105 | 101 | 100 |
| Lifestyle & Entertainment | 100 | 98 | 100 |
| Household Items | 96 | 99 | 100 |
| Education & Childcare | 103 | 98 | 100 |
Knowing the cost of living in Madison allows individuals to create a realistic budget. This helps them understand how their income will cover expenses and whether they need to make financial adjustments. The cost of living in any region can fluctuate due to various factors. To assess the cost of living consistently across different areas, a national average of 100 serves as the basis for the cost of living index. The cost of living in Madison stands at 111, marking it 11% higher than the national average.
Housing costs make up a big chunk of the cost of living in Madison, and they usually eat into a large part of your take-home pay. Unfortunately, in this area, both buying a home and renting one costs 37.7% more than the average city. This includes stuff like home prices, rent, mortgage rates, and insurance.
Nobody knows their city better than the people who actually live there. So, we asked 18 local residents how they would rate the cost of living in Madison and this is how they responded. 17% of people said that the cost of living was affordable, with prices decreasing, while 83% of people said that the cost of living was very expensive and prices continue to rise.
Wondering if Madison is affordable? It's a question that often comes up when you're thinking about a new city since affordability can really shape your decisions. The cost of living index (covered earlier), housing expenses and income levels all play a part in the affordability equation. In Madison, for example, the median home price is 45.7% higher than what folks pay nationally, and monthly rent is 19% higher than the usual rates. Plus, income levels matter too, with Madison boasting a median household income of $98,928, which is 21.6% higher than the national average.
Subsidies: Certain cities or states may implement government subsidies or assistance programs with the goal of alleviating the cost of living pressures on their residents. These programs encompass a broad spectrum of support mechanisms, including Medicare, Medicaid, housing subsidies, low-income home energy assistance programs, school lunch programs, supplemental nutrition assistance programs, student loans, electric vehicle tax credits, affordable care act subsidies and farming subsidies. Areas offering fewer subsidies may experience a rise in their cost of living.
Groceries: Grocery prices have seen substantial hikes in the last 2-3 years, with some markets witnessing food cost increases of over 20% during this period. Conversely, certain markets have experienced only moderate upticks. These variations in food expenses can have a substantial impact on the overall cost of living in any locality. In Madison, the groceries index is 0.7% lower than the national average.
Urbanization: Urban areas with extensive amenities and job opportunities tend to have a higher cost of living due to increased demand for services and relocation, resulting in higher home prices and higher rents. Less densely populated rural areas, or areas with less demand tend to have fewer amenities and slower job growth, which results in a lower cost of living.
The cost of living data for Madison shown above is based on a U.S. average baseline score of 100, making it easier to compare how far your dollar may go from one city to another. Housing uses U.S. Census home price and rental data, while all remaining values are AI-assisted estimates informed by regional pricing, climate, transportation dynamics, and local economic factors. These scores are best used for directional comparisons between cities.
| Cost of living index | |
| Groceries index | |
| Health care index | |
| Housing index | |
| Transportation index | |
| Utilities index | |
| Lifestyle index | |
| Household index | |
| Educare index |
| Median Income | Per Year | Per Month | Max Budget (28% DTI) | Max Budget (36% DTI) |
| Owners | $153,210 | $12,768 | $3,575 | $4,597 |
| Renters | $65,360 | $5,447 | $1,525 | $1,961 |
| State | General Sales Tax | With Max Surtax |
| Wisconsin | 5% | 6.75% |
| State | Income Tax (Low) | Income Tax (High) |
| Wisconsin | 3.54% | 7.65% |
| City | Population | Cost of Living Index | National Avg. |
| Stoughton, WI | 13,411 | 103 | 2.9% |
| DeForest, WI | 10,758 | 106 | 6.3% |
| Dane, WI | 1,036 | 108 | 8.4% |
| Sun Prairie, WI | 35,107 | 110 | 9.5% |
| Monona, WI | 8,334 | 111 | 11.0% |
| Madison, WI | 266,829 | 111 | 10.8% |
| City | Population | Cost of Living Index | National Avg. |
| Chandler, AZ | 266,863 | 125 | 24.9% |
| Lubbock, TX | 266,541 | 96 | 4.1% |
| Jersey City, NJ | 268,546 | 145 | 45.0% |
| Laredo, TX | 268,554 | 93 | 7.1% |
| Buffalo, NY | 262,656 | 98 | 2.3% |
| Madison, WI | 266,829 | 111 | 10.8% |
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