Is it cheaper to live in Chicago or Memphis?

Memphis, TN is cheaper. Its monthly baseline of $1,110 (1BR rent + utilities) runs about 26% below Chicago, IL's $1,490, mainly because of rent.

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

To keep rent near the recommended 30% of gross income, you'd want to earn roughly $50,000 a year in Chicago versus $38,000 in Memphis.

Which has lower taxes, Chicago or Memphis?

Chicago is taxed under Illinois's rules (a top state income tax rate of 4.95% and a 6.25% state sales tax); Memphis under Tennessee's (no state income tax and a 7% state sales tax).

Chicago vs Memphis Cost of Living 2026

Chicago

Illinois

$1,490/mo est.

Memphis

Tennessee

$1,110/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 $1,110 in Memphis, TN. Overall, Memphis, TN is roughly 26% cheaper to live in day-to-day than Chicago, IL, driven mainly by rent.

Median household income is $75,134 in Chicago, IL and $51,211 in Memphis, TN — about 32% higher in Chicago, IL. Illinois has a top state income tax rate of 4.95% and a 6.25% state sales tax; Tennessee has no state income tax and a 7% state sales tax.

Chicago, IL

Memphis, TN

Rent

Studio

$1,186

$877

+26% in Chicago, IL

1 Bedroom

$1,258

$948

+25% in Chicago, IL

2 Bedroom

$1,406

$1,073

+24% in Chicago, IL

3 Bedroom

$1,554

$1,281

+18% in Chicago, IL

Buying a Home

Median Home Value

$315,200

$157,100

+50% in Chicago, IL

Income

Median Household Income

$75,134

$51,211

+32% in Chicago, IL

Metro Median Wage (annual)

$54,720

$46,890

+14% in Chicago, IL

People & Lifestyle

Median Age

35.7 yr

34.3 yr

+1.4 yr in Chicago, IL

Homeownership

45.5%

46.0%

+0.5 pp in Memphis, TN

Bachelor's+ (25+)

43.3%

28.2%

+15.1 pp in Chicago, IL

Avg Commute

33.5 min

21.3 min

+12.2 min in Chicago, IL

Crime (per 100k/yr)

Violent Crime

539.8

2,507.6

+365% in Memphis, TN

Property Crime

3,489.9

6,966.3

+100% in Memphis, TN

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

63.1°F

+10.4°F in Memphis, TN

Annual Precipitation

38.0 in

53.7 in

+15.7 in in Memphis, TN

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

$1.75

+30% in Chicago, IL

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

Utilities

Electricity (¢/kWh)

23.9

14.5

+39% in Chicago, IL

Natural Gas ($/MCF)

$15.39

$16.83

+9% in Memphis, TN

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 Memphis, TN

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 / TN)

6.25%

+0.8 pp in TN

Income Tax (top rate)

4.95%

None

+5.0 pp in IL

Chicago vs Memphis — FAQ

Is it cheaper to live in Chicago or Memphis?: Memphis, TN is cheaper. Its monthly baseline of $1,110 (1BR rent + utilities) runs about 26% below Chicago, IL's $1,490, mainly because of rent.
How much more do you need to earn to live in Chicago than in Memphis?: To keep rent near the recommended 30% of gross income, you'd want to earn roughly $50,000 a year in Chicago versus $38,000 in Memphis.
Which has lower taxes, Chicago or Memphis?: Chicago is taxed under Illinois's rules (a top state income tax rate of 4.95% and a 6.25% state sales tax); Memphis under Tennessee's (no state income tax 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).