Is it cheaper to live in Chicago or Denver?

Chicago, IL is cheaper. Its monthly baseline of $1,440 (1BR rent + utilities) runs about 18% below Denver, CO's $1,750, mainly because of rent.

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

To keep rent near the recommended 30% of gross income, you'd want to earn roughly $50,000 a year in Chicago versus $63,000 in Denver.

Which has lower taxes, Chicago or Denver?

Chicago is taxed under Illinois's rules (a top state income tax rate of 4.95% and a 6.25% state sales tax); Denver under Colorado's (a top state income tax rate of 4.40% and a 2.9% state sales tax).

Chicago vs Denver Cost of Living 2026

Chicago

Illinois

$1,440/mo est.

Denver

Colorado

$1,750/mo est.

Monthly estimate = 1BR rent + electricity + gas

A one-person monthly baseline (1BR rent plus typical utilities) runs $1,440 in Chicago, IL versus $1,750 in Denver, CO. Overall, Chicago, IL is roughly 18% cheaper to live in day-to-day than Denver, CO, driven mainly by rent.

Median household income is $75,134 in Chicago, IL and $91,681 in Denver, CO — about 18% higher in Denver, CO. Illinois has a top state income tax rate of 4.95% and a 6.25% state sales tax; Colorado has a top state income tax rate of 4.40% and a 2.9% state sales tax.

Chicago, IL

Denver, CO

Rent

Studio

$1,186

$1,497

+26% in Denver, CO

1 Bedroom

$1,258

$1,583

+26% in Denver, CO

2 Bedroom

$1,406

$1,958

+39% in Denver, CO

3 Bedroom

$1,554

$2,269

+46% in Denver, CO

Buying a Home

Median Home Value

$315,200

$586,700

+86% in Denver, CO

Income

Median Household Income

$75,134

$91,681

+22% in Denver, CO

Metro Median Wage (annual)

$54,720

$62,320

+14% in Denver, CO

People & Lifestyle

Median Age

35.7 yr

35.2 yr

+0.5 yr in Chicago, IL

Homeownership

45.5%

49.1%

+3.6 pp in Denver, CO

Bachelor's+ (25+)

43.3%

55.6%

+12.3 pp in Denver, CO

Avg Commute

33.5 min

25.4 min

+8.1 min in Chicago, IL

Crime (per 100k/yr)

Violent Crime

539.8

998.3

+85% in Denver, CO

Property Crime

3,489.9

4,781.9

+37% in Denver, CO

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

Climate

Avg Annual Temperature

52.7°F

50.2°F

+2.5°F in Chicago, IL

Annual Precipitation

38.0 in

15.6 in

+22.4 in in Chicago, IL

Gas

Regular Gasoline

$4.82/gal

$4.58/gal

+5% in Chicago, IL

Area: Chicago vs Denver.

Public Transit

Base Fare (one-way)

$2.50

$2.75

+10% in Denver, CO

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

Utilities

Electricity (¢/kWh)

18.9

16.7

+11% in Chicago, IL

Natural Gas ($/MCF)

$12.10

$11.64

+4% in Chicago, IL

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

Groceries

Milk (gal)

$4.14

$4.37

+6% in Denver, CO

Bread (lb)

$1.79

$2.10

+17% in Denver, CO

Eggs (doz)

$3.63

$2.25

+38% in Chicago, IL

Ground Beef (lb)

$6.97

$7.23

+4% in Denver, CO

Chicken (lb)

$2.15

$2.14

+1% in Chicago, IL

Bananas (lb)

$0.63

$0.74

+18% in Denver, CO

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

State Taxes

Sales Tax (IL / CO)

6.25%

2.9%

+3.4 pp in IL

Income Tax (top rate)

4.95%

4.40%

+0.5 pp in IL

Chicago vs Denver — FAQ

Is it cheaper to live in Chicago or Denver?: Chicago, IL is cheaper. Its monthly baseline of $1,440 (1BR rent + utilities) runs about 18% below Denver, CO's $1,750, mainly because of rent.
How much more do you need to earn to live in Chicago than in Denver?: To keep rent near the recommended 30% of gross income, you'd want to earn roughly $50,000 a year in Chicago versus $63,000 in Denver.
Which has lower taxes, Chicago or Denver?: Chicago is taxed under Illinois's rules (a top state income tax rate of 4.95% and a 6.25% state sales tax); Denver under Colorado's (a top state income tax rate of 4.40% and a 2.9% 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).