Chicago, IL vs Sacramento, CA Cost of Living (2026)

Chicago has a cost of living index of 117.6, about 17.6% above the national average. The housing index is 143.8, so housing still does a lot to shape the local budget. Typical apartment rent is about $3,330 a month, and median home values are around $621,136. The median household income is approximately $72,000. That makes it one of the more affordable large cities in the country, especially considering what it offers in terms of scale and amenities.

A $100,000 salary in an average-cost city buys about $85,000 worth of lifestyle in Chicago. The premium is noticeable, but it is not on the same level as New York or San Francisco. Outside housing, healthcare and miscellaneous costs also run above the national baseline.

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.

Sacramento has a cost of living index of 123.7, about 23.7% above the national average. The housing index is 137.5, so housing still does a lot to shape the local budget. Typical apartment rent is about $2,339 a month, and median home values are around $724,691. The median household income is approximately $72,000. Compared to the Bay Area cities just 90 miles away, Sacramento looks affordable in absolute terms. Compared to the national average, it carries a real cost premium.

A $100,000 salary in an average-cost city buys about $80,800 worth of lifestyle in Sacramento. The premium is noticeable, but it is not on the same level as New York or San Francisco. Outside housing, utilities and transportation also run above the national baseline.

California's income tax applies throughout the state, and Sacramento is no exception. The income tax structure is the same whether you live in Sacramento or San Francisco: a progressive rate that reaches 13.3% at the highest bracket and 9.3% for income between roughly $67,000 and $338,000 for single filers. Workers moving from other states often find this to be the sharpest adjustment, as state income taxes here are among the highest in the country.

One specific cost element in Sacramento is air conditioning. The Central Valley climate brings extended hot spells from June through September, and homes without efficient cooling systems can generate high electric bills. Pacific Gas & Electric rates in the region are among the higher utility rates in California, and summer electricity costs can run $200 to $350 per month for a standard apartment. That's a real cost that doesn't show up in rent comparisons.