Is it cheaper to live in Chicago or Nashville?

Chicago, IL is cheaper. Its monthly baseline of $1,440 (1BR rent + utilities) runs about 4% below Nashville, TN's $1,500, mainly because of rent.

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

To keep rent near the recommended 30% of gross income, you'd want to earn roughly $50,000 a year in Chicago versus $53,000 in Nashville.

Which has lower taxes, Chicago or Nashville?

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

Chicago vs Nashville Cost of Living 2026

Chicago

Illinois

$1,440/mo est.

Nashville

Tennessee

$1,500/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 $1,500 in Nashville, TN. Overall, Chicago, IL is roughly 4% cheaper to live in day-to-day than Nashville, TN, driven mainly by rent.

Median household income is $75,134 in Chicago, IL and $75,197 in Nashville, TN. 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

Nashville, TN

Rent

Studio

$1,186

$1,341

+13% in Nashville, TN

1 Bedroom

$1,258

$1,336

+6% in Nashville, TN

2 Bedroom

$1,406

$1,478

+5% in Nashville, TN

3 Bedroom

$1,554

$1,832

+18% in Nashville, TN

Buying a Home

Median Home Value

$315,200

$383,100

+22% in Nashville, TN

Income

Median Household Income

$75,134

$75,197

+0% in Nashville, TN

Metro Median Wage (annual)

$54,720

$50,390

+8% in Chicago, IL

People & Lifestyle

Median Age

35.7 yr

34.4 yr

+1.3 yr in Chicago, IL

Homeownership

45.5%

53.0%

+7.5 pp in Nashville, TN

Bachelor's+ (25+)

43.3%

46.9%

+3.6 pp in Nashville, TN

Avg Commute

33.5 min

24.9 min

+8.6 min in Chicago, IL

Crime (per 100k/yr)

Violent Crime

539.8

1,178.6

+118% in Nashville, TN

Property Crime

3,489.9

4,557.6

+31% in Nashville, 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

59.4°F

+6.7°F in Nashville, TN

Annual Precipitation

38.0 in

47.3 in

+9.3 in in Nashville, TN

Gas

Regular Gasoline

$4.82/gal

$4.35/gal

+10% in Chicago, IL

Area: Chicago vs Midwest (PADD 2).

Public Transit

Base Fare (one-way)

$2.50

$2.00

+20% in Chicago, IL

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

Utilities

Electricity (¢/kWh)

18.9

15.1

+20% in Chicago, IL

Natural Gas ($/MCF)

$12.10

$15.54

+28% in Nashville, TN

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

Groceries

Milk (gal)

$4.14

$4.16

+1% in Nashville, TN

Bread (lb)

$1.79

$1.73

+3% in Chicago, IL

Eggs (doz)

$3.63

$2.19

+40% in Chicago, IL

Ground Beef (lb)

$6.97

$6.56

+6% in Chicago, IL

Chicken (lb)

$2.15

$1.90

+12% in Chicago, IL

Bananas (lb)

$0.63

$0.61

+3% in Chicago, IL

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 Nashville — FAQ

Is it cheaper to live in Chicago or Nashville?: Chicago, IL is cheaper. Its monthly baseline of $1,440 (1BR rent + utilities) runs about 4% below Nashville, TN's $1,500, mainly because of rent.
How much more do you need to earn to live in Chicago than in Nashville?: To keep rent near the recommended 30% of gross income, you'd want to earn roughly $50,000 a year in Chicago versus $53,000 in Nashville.
Which has lower taxes, Chicago or Nashville?: Chicago is taxed under Illinois's rules (a top state income tax rate of 4.95% and a 6.25% state sales tax); Nashville 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).