Cost of Living in Madison
Madison, Wisconsin's cost-of-living picture runs only modestly above national figures on housing, with a real, comparatively simple state income tax offset by Dane County's genuinely elevated property tax rate and below-national-average homeowners-insurance costs.
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Learn moreHousing Runs Only Modestly Above National Figures
As detailed on the housing-market topic page, Madison's average home value ran $435,128 (Zillow, up 2.1% year-over-year), with Redfin's own median sale price at $445,000 -- both genuinely above the U.S. national median, but not in the same elevated tier as several other Tier A+ markets covered elsewhere in this project.
Dane County's Real, Elevated Property Tax Is the Larger Cost Factor
As detailed in full on the property-taxes topic page, Dane County's own effective property tax rate ran approximately 1.71% -- genuinely above the national median of approximately 1.02%, and at or above the top of Wisconsin's own statewide range, producing a real median annual bill of approximately $6,276 on a median-valued home.
A Real, Comparatively Simple Income-Tax Structure
As detailed on the taxes topic page, Wisconsin's 4-bracket state income tax (3.50% to 7.65%) carries no local piggyback layer -- a real, genuine cost-of-living simplification for Madison residents relative to states with county-level income-tax layers documented elsewhere in this project.
Real, Disclosed Cost Offsets: Insurance and Rent
As detailed on the homeowners-insurance and renting topic pages, Wisconsin's statewide homeowners-insurance average (approximately $1,367-$1,897/year) runs genuinely below several commonly cited national figures and well below several neighboring states, and Madison's own rent figures (one-bedroom averaging approximately $1,580) run in a genuinely moderate range relative to several other Tier A+ markets.
Key takeaways
- Madison's average home value ($435,128) runs only modestly above national figures -- not in the same elevated tier as several other Tier A+ markets.
- Dane County's own effective property tax rate (approximately 1.71%) is the larger real cost factor, genuinely above the national median.
- Wisconsin's 4-bracket state income tax (3.50% to 7.65%) carries no local piggyback layer -- a real cost-of-living simplification.
- Wisconsin's statewide homeowners-insurance average runs genuinely below several commonly cited national and neighboring-state figures.
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