Chicago, IL Cost of Living (2026)

Chicago has a cost of living index of 107, just 7% above the national average. That makes it one of the more affordable large cities in the country, especially considering what it offers in terms of scale and amenities. The housing index is 115, so rents run only modestly above average. A one-bedroom apartment in Chicago averages $1,400 to $2,000 per month depending on neighborhood, with the North Side and River North on the higher end and neighborhoods like Logan Square and Bridgeport offering better value.

For someone earning $100,000 in an average-cost city, Chicago delivers roughly $93,000 worth of purchasing power. That near-parity means relocation decisions are less financially distorted than they would be for moves to the coasts. Someone coming from Houston or Indianapolis would see modest increases in day-to-day costs, while someone coming from San Francisco or New York would find the same salary goes considerably further.

Chicago's transit system, the L, covers much of the city and connects to a commuter rail network serving the suburbs. Many city residents live without a car, which meaningfully reduces transportation costs. Grocery prices are close to the national average, and the city's dining scene includes a wide range of price points. Utilities run slightly above average in winter due to heating costs.

Illinois has a flat state income tax of 4.95%, which is relatively straightforward to plan around. Cook County and the city of Chicago add sales taxes that push the combined rate to around 10.25%, one of the higher sales tax rates in the country. Property taxes in Chicago are also high relative to home values. Homeowners should factor property tax into total housing cost calculations, as effective rates can add $5,000 to $10,000 per year to the cost of owning a $400,000 home.