Cost Of Living In Madison, WI: 2027 Guide To Housing, Taxes And Expenses
Daria Pohrebniak
Marketing Director - ReVerb
11.12.2026
Last updated: November 12, 2026
Quick answer: Living in Madison, WI costs more than most of Wisconsin, mainly because of housing. The typical home value is about $435,000, typical rent is around $1,650 a month, property taxes on the city’s average-value home are about $8,600 a year after credits, and sales tax is 5.5%.
Madison regularly ranks among the most livable mid-sized cities in the country, and its housing costs reflect that demand. Groceries, utilities and transportation are close to national norms, while home prices and property taxes sit well above the Wisconsin average.
Madison Cost Of Living At A Glance
Cost
Typical Figure
Notes
Typical home value
About $435,000
Zillow Home Value Index, mid 2026
Typical rent
About $1,650 per month
Zillow Observed Rent Index
Average-value home (city assessment)
$481,300
City of Madison, 2026
Property tax on average home
About $8,614 per year
After state credits, 2026 bills
Sales tax
5.5%
5% state plus 0.5% Dane County
State income tax
3.5% to 7.65%
Four brackets
Housing Costs
Buying A Home
Zillow puts the typical Madison home value at about $435,000 in mid 2026, up around 2% over the year, and homes often go under contract within two weeks. The city’s own assessment puts the average-value home at $481,300 for 2026. Prices vary widely by neighborhood: near-campus and lakeside areas on the near west side can run far higher, while parts of the north and east sides and some suburbs cost less.
Renting
Zillow’s rent index for Madison sits around $1,650 a month, below the national average of roughly $1,950. Downtown and campus apartments carry a premium, and lease cycles follow the university calendar, so August is the busiest moving month.
Taxes
Property Taxes
Property taxes are the largest surprise for many newcomers. The City of Madison estimates the 2026 tax on an average-value home at about $8,614 after state tax credits, up about 11% from the year before, with a net tax rate of about 1.87%. The bill combines the city, Dane County, the school district and Madison College.
Sales Tax
Sales tax across Dane County is 5.5%: the 5% state rate plus a 0.5% county tax. Groceries are exempt from state sales tax.
Income Tax
Wisconsin has a graduated income tax with four brackets from 3.5% to 7.65% for the 2026 tax year. Social Security benefits are not taxed by the state.
Everyday Expenses
Utilities: winter heating is the biggest swing, so budget more from December to March.
Transportation: Metro Transit’s Rapid Route A bus rapid transit line, launched in 2024, runs about 15 miles east to west through downtown and campus, and many residents bike year-round.
Food: grocery prices are close to the national average, and the farmers’ markets make local produce easy to find.
Madison Versus The Suburbs
Suburbs such as Sun Prairie, Fitchburg, Middleton, Verona and Waunakee offer newer housing and different school districts. Verona is home to Epic Systems’ campus, which drives demand on the west and southwest side.
Frequently Asked Questions
Is Madison, WI expensive to live in?
Madison is more expensive than most of Wisconsin, mainly because of housing and property taxes, but cheaper than large coastal metros. Typical rent of about $1,650 is below the national average.
How much are property taxes in Madison?
The City of Madison estimates the 2026 tax on its average-value home ($481,300) at about $8,614 after state credits, a net rate of about 1.87%.
What is the sales tax in Madison, WI?
The combined sales tax is 5.5%, made up of the 5% Wisconsin rate and a 0.5% Dane County tax.
What salary do you need to live comfortably in Madison?
It depends on household size and housing choices. Renting a typical apartment at about $1,650 a month generally calls for a household income in the mid five figures or higher, and buying a typical home usually needs well over $100,000.
Conclusion
Housing and property taxes drive Madison’s cost of living, while everyday costs stay close to national norms. Compare neighborhoods and suburbs carefully before you buy, and budget for winter heating.
