Is it cheaper to live in Chicago or Minneapolis?

Minneapolis, MN is cheaper. Its monthly baseline of $1,350 (1BR rent + utilities) runs about 6% below Chicago, IL's $1,440, mainly because of rent.

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

To keep rent near the recommended 30% of gross income, you'd want to earn roughly $50,000 a year in Chicago versus $48,000 in Minneapolis.

Which has lower taxes, Chicago or Minneapolis?

Chicago is taxed under Illinois's rules (a top state income tax rate of 4.95% and a 6.25% state sales tax); Minneapolis under Minnesota's (a top state income tax rate of 9.85% and a 6.875% state sales tax).

Chicago vs Minneapolis Cost of Living 2026

Chicago

Illinois

$1,440/mo est.

Minneapolis

Minnesota

$1,350/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 $1,350 in Minneapolis, MN. Overall, Minneapolis, MN is roughly 6% cheaper to live in day-to-day than Chicago, IL, driven mainly by rent.

Median household income is $75,134 in Chicago, IL and $80,269 in Minneapolis, MN — about 6% higher in Minneapolis, MN. Illinois has a top state income tax rate of 4.95% and a 6.25% state sales tax; Minnesota has a top state income tax rate of 9.85% and a 6.875% state sales tax.

Chicago, IL

Minneapolis, MN

Rent

Studio

$1,186

$992

+16% in Chicago, IL

1 Bedroom

$1,258

$1,192

+5% in Chicago, IL

2 Bedroom

$1,406

$1,555

+11% in Minneapolis, MN

3 Bedroom

$1,554

$1,761

+13% in Minneapolis, MN

Buying a Home

Median Home Value

$315,200

$345,600

+10% in Minneapolis, MN

Income

Median Household Income

$75,134

$80,269

+7% in Minneapolis, MN

Metro Median Wage (annual)

$54,720

$59,320

+8% in Minneapolis, MN

People & Lifestyle

Median Age

35.7 yr

33.0 yr

+2.7 yr in Chicago, IL

Homeownership

45.5%

48.0%

+2.5 pp in Minneapolis, MN

Bachelor's+ (25+)

43.3%

54.5%

+11.2 pp in Minneapolis, MN

Avg Commute

33.5 min

22.5 min

+11.0 min in Chicago, IL

Crime (per 100k/yr)

Violent Crime

539.8

1,167.8

+116% in Minneapolis, MN

Property Crime

3,489.9

5,182.6

+49% in Minneapolis, MN

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

47.4°F

+5.3°F in Chicago, IL

Annual Precipitation

38.0 in

32.8 in

+5.1 in in Chicago, IL

Gas

Regular Gasoline

$4.82/gal

$4.25/gal

+12% in Chicago, IL

Area: Chicago vs Minnesota.

Public Transit

Base Fare (one-way)

$2.50

$2.00

+20% in Chicago, IL

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

Utilities

Electricity (¢/kWh)

18.9

15.1

+20% in Chicago, IL

Natural Gas ($/MCF)

$12.10

$14.33

+18% in Minneapolis, MN

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

Groceries

Milk (gal)

$4.14

about equal

Bread (lb)

$1.79

about equal

Eggs (doz)

$3.63

about equal

Ground Beef (lb)

$6.97

about equal

Chicken (lb)

$2.15

about equal

Bananas (lb)

$0.63

about equal

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

State Taxes

Sales Tax (IL / MN)

6.25%

6.875%

+0.6 pp in MN

Income Tax (top rate)

4.95%

9.85%

+4.9 pp in MN

Chicago vs Minneapolis — FAQ

Is it cheaper to live in Chicago or Minneapolis?: Minneapolis, MN is cheaper. Its monthly baseline of $1,350 (1BR rent + utilities) runs about 6% below Chicago, IL's $1,440, mainly because of rent.
How much more do you need to earn to live in Chicago than in Minneapolis?: To keep rent near the recommended 30% of gross income, you'd want to earn roughly $50,000 a year in Chicago versus $48,000 in Minneapolis.
Which has lower taxes, Chicago or Minneapolis?: Chicago is taxed under Illinois's rules (a top state income tax rate of 4.95% and a 6.25% state sales tax); Minneapolis under Minnesota's (a top state income tax rate of 9.85% and a 6.875% 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).