Is it cheaper to live in Austin or Chicago?

Chicago, IL is cheaper. Its monthly baseline of $1,490 (1BR rent + utilities) runs about 10% below Austin, TX's $1,660, mainly because of rent.

How much more do you need to earn to live in Austin than in Chicago?

To keep rent near the recommended 30% of gross income, you'd want to earn roughly $58,000 a year in Austin versus $50,000 in Chicago.

Which has lower taxes, Austin or Chicago?

Austin is taxed under Texas's rules (no state income tax and a 6.25% state sales tax); Chicago under Illinois's (a top state income tax rate of 4.95% and a 6.25% state sales tax).

Austin vs Chicago Cost of Living 2026

Austin

Texas

$1,660/mo est.

Chicago

Illinois

$1,490/mo est.

Monthly estimate = 1BR rent + electricity + gas

A one-person monthly baseline (1BR rent plus typical utilities) runs $1,660 in Austin, TX versus $1,490 in Chicago, IL. Overall, Chicago, IL is roughly 10% cheaper to live in day-to-day than Austin, TX, driven mainly by rent.

Median household income is $91,461 in Austin, TX and $75,134 in Chicago, IL — about 18% higher in Austin, TX. Texas has no state income tax and a 6.25% state sales tax; Illinois has a top state income tax rate of 4.95% and a 6.25% state sales tax.

Austin, TX

Chicago, IL

Rent

Studio

$1,348

$1,186

+12% in Austin, TX

1 Bedroom

$1,457

$1,258

+14% in Austin, TX

2 Bedroom

$1,776

$1,406

+21% in Austin, TX

3 Bedroom

$2,127

$1,554

+27% in Austin, TX

Buying a Home

Median Home Value

$512,700

$315,200

+39% in Austin, TX

Income

Median Household Income

$91,461

$75,134

+18% in Austin, TX

Metro Median Wage (annual)

$56,950

$54,720

+4% in Austin, TX

People & Lifestyle

Median Age

34.5 yr

35.7 yr

+1.2 yr in Chicago, IL

Homeownership

44.4%

45.5%

+1.1 pp in Chicago, IL

Bachelor's+ (25+)

58.2%

43.3%

+14.9 pp in Austin, TX

Avg Commute

24.0 min

33.5 min

+9.5 min in Chicago, IL

Crime (per 100k/yr)

Violent Crime

476.1

539.8

+13% in Chicago, IL

Property Crime

3,290.7

3,489.9

+6% in Chicago, IL

FBI Crime Data Explorer. Offenses per 100,000 residents per year; agency reporting practices vary, so this is approximate.

Climate

Avg Annual Temperature

67.2°F

52.7°F

+14.5°F in Austin, TX

Annual Precipitation

34.9 in

38.0 in

+3.1 in in Chicago, IL

Gas

Regular Gasoline

$3.62/gal

$4.29/gal

+19% in Chicago, IL

Area: Texas vs Chicago.

Public Transit

Base Fare (one-way)

$1.25

$2.50

+100% in Chicago, IL

Adult base one-way fare — CapMetro vs CTA (2026).

Utilities

Electricity (¢/kWh)

16.4

23.9

+45% in Chicago, IL

Natural Gas ($/MCF)

$30.48

$15.39

+50% in Austin, TX

Residential, state-level averages (EIA). MCF = 1,000 cubic feet.

Groceries

Milk (gal)

$4.00

$4.31

+8% in Chicago, IL

Bread (lb)

$1.75

$1.66

+5% in Austin, TX

Eggs (doz)

$2.21

$3.63

+64% in Chicago, IL

Ground Beef (lb)

$6.45

$6.77

+5% in Chicago, IL

Chicken (lb)

$1.90

$2.10

+10% in Chicago, IL

Bananas (lb)

$0.62

about equal

Average prices — South vs Midwest (BLS). Regional where available, otherwise U.S. average.

State Taxes

Sales Tax (TX / IL)

6.25%

about equal

Income Tax (top rate)

None

4.95%

+5.0 pp in IL

Austin vs Chicago — FAQ

Is it cheaper to live in Austin or Chicago?: Chicago, IL is cheaper. Its monthly baseline of $1,490 (1BR rent + utilities) runs about 10% below Austin, TX's $1,660, mainly because of rent.
How much more do you need to earn to live in Austin than in Chicago?: To keep rent near the recommended 30% of gross income, you'd want to earn roughly $58,000 a year in Austin versus $50,000 in Chicago.
Which has lower taxes, Austin or Chicago?: Austin is taxed under Texas's rules (no state income tax and a 6.25% state sales tax); Chicago under Illinois's (a top state income tax rate of 4.95% and a 6.25% state sales tax).

Sources: US Census Bureau, ACS 5-Year (rent, income, home value, demographics); NOAA Climate Normals 1981–2010 (climate); EIA weekly retail (gas); Tax Foundation 2026 (state taxes).