Is it cheaper to live in Chicago or Fairbanks?

Fairbanks, AK is cheaper. Its monthly baseline of $1,350 (1BR rent + utilities) runs about 8% below Chicago, IL's $1,470, mainly because of rent.

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

To keep rent near the recommended 30% of gross income, you'd want to earn roughly $50,000 a year in Chicago versus $43,000 in Fairbanks.

Which has lower taxes, Chicago or Fairbanks?

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

Chicago vs Fairbanks Cost of Living 2026

Chicago

Illinois

$1,470/mo est.

Fairbanks

Alaska

$1,350/mo est.

Monthly estimate = 1BR rent + electricity + gas

A one-person monthly baseline (1BR rent plus typical utilities) runs $1,470 in Chicago, IL versus $1,350 in Fairbanks, AK. Overall, Fairbanks, AK is roughly 8% cheaper to live in day-to-day than Chicago, IL, driven mainly by rent.

Median household income is $75,134 in Chicago, IL and $72,077 in Fairbanks, AK — about 4% higher in Chicago, IL. Illinois has a top state income tax rate of 4.95% and a 6.25% state sales tax; Alaska has no state income tax and no state sales tax.

Chicago, IL

Fairbanks, AK

Rent

Studio

$1,186

$883

+26% in Chicago, IL

1 Bedroom

$1,258

$1,076

+14% in Chicago, IL

2 Bedroom

$1,406

$1,428

+2% in Fairbanks, AK

3 Bedroom

$1,554

$2,019

+30% in Fairbanks, AK

Buying a Home

Median Home Value

$315,200

$255,700

+19% in Chicago, IL

Income

Median Household Income

$75,134

$72,077

+4% in Chicago, IL

Metro Median Wage (annual)

$54,720

$61,810

+13% in Fairbanks, AK

People & Lifestyle

Median Age

35.7 yr

28.6 yr

+7.1 yr in Chicago, IL

Homeownership

45.5%

40.5%

+5.0 pp in Chicago, IL

Bachelor's+ (25+)

43.3%

26.5%

+16.8 pp in Chicago, IL

Avg Commute

33.5 min

14.1 min

+19.4 min in Chicago, IL

Crime (per 100k/yr)

Violent Crime

539.8

726.1

+35% in Fairbanks, AK

Property Crime

3,489.9

3,504.2

+0% in Fairbanks, AK

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

27.7°F

+25.0°F in Chicago, IL

Annual Precipitation

38.0 in

10.8 in

+27.1 in in Chicago, IL

Gas

Regular Gasoline

$4.24/gal

$5.21/gal

+23% in Fairbanks, AK

Area: Chicago vs West Coast (PADD 5).

Public Transit

Base Fare (one-way)

$2.50

—

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

Utilities

Electricity (¢/kWh)

19.9

28.2

+42% in Fairbanks, AK

Natural Gas ($/MCF)

$19.71

$17.35

+12% in Chicago, IL

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

Groceries

Milk (gal)

$4.31

$4.82

+12% in Fairbanks, AK

Bread (lb)

$1.66

$2.04

+23% in Fairbanks, AK

Eggs (doz)

$3.63

$2.19

+40% in Chicago, IL

Ground Beef (lb)

$6.77

$7.36

+9% in Fairbanks, AK

Chicken (lb)

$2.10

$2.01

+4% in Chicago, IL

Bananas (lb)

$0.62

$0.70

+14% in Fairbanks, AK

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

State Taxes

Sales Tax (IL / AK)

6.25%

None

+6.3 pp in IL

Income Tax (top rate)

4.95%

None

+5.0 pp in IL

Chicago vs Fairbanks — FAQ

Is it cheaper to live in Chicago or Fairbanks?: Fairbanks, AK is cheaper. Its monthly baseline of $1,350 (1BR rent + utilities) runs about 8% below Chicago, IL's $1,470, mainly because of rent.
How much more do you need to earn to live in Chicago than in Fairbanks?: To keep rent near the recommended 30% of gross income, you'd want to earn roughly $50,000 a year in Chicago versus $43,000 in Fairbanks.
Which has lower taxes, Chicago or Fairbanks?: Chicago is taxed under Illinois's rules (a top state income tax rate of 4.95% and a 6.25% state sales tax); Fairbanks under Alaska's (no state income tax and no 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).