Is it cheaper to live in Chicago or Madison?

Madison, WI is cheaper. Its monthly baseline of $1,410 (1BR rent + utilities) runs about 5% below Chicago, IL's $1,490, mainly because of rent.

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

To keep rent near the recommended 30% of gross income, you'd want to earn roughly $50,000 a year in Chicago versus $49,000 in Madison.

Which has lower taxes, Chicago or Madison?

Chicago is taxed under Illinois's rules (a top state income tax rate of 4.95% and a 6.25% state sales tax); Madison under Wisconsin's (a top state income tax rate of 7.65% and a 5% state sales tax).

Chicago vs Madison Cost of Living 2026

Chicago

Illinois

$1,490/mo est.

Madison

Wisconsin

$1,410/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 $1,410 in Madison, WI. Overall, Madison, WI is roughly 5% cheaper to live in day-to-day than Chicago, IL, driven mainly by rent.

Median household income is $75,134 in Chicago, IL and $76,983 in Madison, WI — about 2% higher in Madison, WI. Illinois has a top state income tax rate of 4.95% and a 6.25% state sales tax; Wisconsin has a top state income tax rate of 7.65% and a 5% state sales tax.

Chicago, IL

Madison, WI

Rent

Studio

$1,186

$1,018

+14% in Chicago, IL

1 Bedroom

$1,258

$1,219

+3% in Chicago, IL

2 Bedroom

$1,406

$1,432

+2% in Madison, WI

3 Bedroom

$1,554

$1,766

+14% in Madison, WI

Buying a Home

Median Home Value

$315,200

$346,900

+10% in Madison, WI

Income

Median Household Income

$75,134

$76,983

+2% in Madison, WI

Metro Median Wage (annual)

$54,720

$58,080

+6% in Madison, WI

People & Lifestyle

Median Age

35.7 yr

31.8 yr

+3.9 yr in Chicago, IL

Homeownership

45.5%

46.6%

+1.1 pp in Madison, WI

Bachelor's+ (25+)

43.3%

59.2%

+15.9 pp in Madison, WI

Avg Commute

33.5 min

19.4 min

+14.1 min in Chicago, IL

Crime (per 100k/yr)

Violent Crime

539.8

259.5

+52% in Chicago, IL

Property Crime

3,489.9

1,884.5

+46% 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

52.7°F

46.5°F

+6.2°F in Chicago, IL

Annual Precipitation

38.0 in

34.5 in

+3.5 in in Chicago, IL

Gas

Regular Gasoline

$4.29/gal

$3.94/gal

+8% in Chicago, IL

Area: Chicago vs Midwest (PADD 2).

Public Transit

Base Fare (one-way)

$2.50

—

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

Utilities

Electricity (¢/kWh)

23.9

19.7

+17% in Chicago, IL

Natural Gas ($/MCF)

$15.39

$11.79

+23% in Chicago, IL

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

Groceries

Milk (gal)

$4.31

about equal

Bread (lb)

$1.66

about equal

Eggs (doz)

$3.63

about equal

Ground Beef (lb)

$6.77

about equal

Chicken (lb)

$2.10

about equal

Bananas (lb)

$0.62

about equal

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

State Taxes

Sales Tax (IL / WI)

6.25%

+1.3 pp in IL

Income Tax (top rate)

4.95%

7.65%

+2.7 pp in WI

Chicago vs Madison — FAQ

Is it cheaper to live in Chicago or Madison?: Madison, WI is cheaper. Its monthly baseline of $1,410 (1BR rent + utilities) runs about 5% below Chicago, IL's $1,490, mainly because of rent.
How much more do you need to earn to live in Chicago than in Madison?: To keep rent near the recommended 30% of gross income, you'd want to earn roughly $50,000 a year in Chicago versus $49,000 in Madison.
Which has lower taxes, Chicago or Madison?: Chicago is taxed under Illinois's rules (a top state income tax rate of 4.95% and a 6.25% state sales tax); Madison under Wisconsin's (a top state income tax rate of 7.65% and a 5% 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).