Is it cheaper to live in Chicago or Jackson?

Jackson, MS is cheaper. Its monthly baseline of $1,010 (1BR rent + utilities) runs about 32% below Chicago, IL's $1,490, mainly because of rent.

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

To keep rent near the recommended 30% of gross income, you'd want to earn roughly $50,000 a year in Chicago versus $33,000 in Jackson.

Which has lower taxes, Chicago or Jackson?

Chicago is taxed under Illinois's rules (a top state income tax rate of 4.95% and a 6.25% state sales tax); Jackson under Mississippi's (a top state income tax rate of 4.00% and a 7% state sales tax).

Chicago vs Jackson Cost of Living 2026

Chicago

Illinois

$1,490/mo est.

Jackson

Mississippi

$1,010/mo est.

Monthly estimate = 1BR rent + electricity + gas

A one-person monthly baseline (1BR rent plus typical utilities) runs $1,490 in Chicago, IL versus $1,010 in Jackson, MS. Overall, Jackson, MS is roughly 32% cheaper to live in day-to-day than Chicago, IL, driven mainly by rent.

Median household income is $75,134 in Chicago, IL and $43,238 in Jackson, MS — about 42% higher in Chicago, IL. Illinois has a top state income tax rate of 4.95% and a 6.25% state sales tax; Mississippi has a top state income tax rate of 4.00% and a 7% state sales tax.

Chicago, IL

Jackson, MS

Rent

Studio

$1,186

$1,085

+9% in Chicago, IL

1 Bedroom

$1,258

$816

+35% in Chicago, IL

2 Bedroom

$1,406

$991

+30% in Chicago, IL

3 Bedroom

$1,554

$1,121

+28% in Chicago, IL

Buying a Home

Median Home Value

$315,200

$108,200

+66% in Chicago, IL

Income

Median Household Income

$75,134

$43,238

+42% in Chicago, IL

Metro Median Wage (annual)

$54,720

$42,850

+22% in Chicago, IL

People & Lifestyle

Median Age

35.7 yr

34.7 yr

+1.0 yr in Chicago, IL

Homeownership

45.5%

48.6%

+3.1 pp in Jackson, MS

Bachelor's+ (25+)

43.3%

28.6%

+14.7 pp in Chicago, IL

Avg Commute

33.5 min

20.2 min

+13.3 min in Chicago, IL

Crime (per 100k/yr)

Violent Crime

539.8

—

Property Crime

3,489.9

—

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

65.3°F

+12.6°F in Jackson, MS

Annual Precipitation

38.0 in

54.3 in

+16.4 in in Jackson, MS

Gas

Regular Gasoline

$4.29/gal

$3.62/gal

+16% in Chicago, IL

Area: Chicago vs Gulf Coast (PADD 3).

Public Transit

Base Fare (one-way)

$2.50

—

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

Utilities

Electricity (¢/kWh)

23.9

16.2

+32% in Chicago, IL

Natural Gas ($/MCF)

$15.39

$27.68

+80% in Jackson, MS

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

Groceries

Milk (gal)

$4.31

$4.00

+7% in Chicago, IL

Bread (lb)

$1.66

$1.75

+5% in Jackson, MS

Eggs (doz)

$3.63

$2.21

+39% in Chicago, IL

Ground Beef (lb)

$6.77

$6.45

+5% in Chicago, IL

Chicken (lb)

$2.10

$1.90

+9% in Chicago, IL

Bananas (lb)

$0.62

about equal

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

State Taxes

Sales Tax (IL / MS)

6.25%

+0.8 pp in MS

Income Tax (top rate)

4.95%

4.00%

+1.0 pp in IL

Chicago vs Jackson — FAQ

Is it cheaper to live in Chicago or Jackson?: Jackson, MS is cheaper. Its monthly baseline of $1,010 (1BR rent + utilities) runs about 32% below Chicago, IL's $1,490, mainly because of rent.
How much more do you need to earn to live in Chicago than in Jackson?: To keep rent near the recommended 30% of gross income, you'd want to earn roughly $50,000 a year in Chicago versus $33,000 in Jackson.
Which has lower taxes, Chicago or Jackson?: Chicago is taxed under Illinois's rules (a top state income tax rate of 4.95% and a 6.25% state sales tax); Jackson under Mississippi's (a top state income tax rate of 4.00% and a 7% 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).