Is it cheaper to live in Chicago or New York City?

Chicago, IL is cheaper. Its monthly baseline of $1,440 (1BR rent + utilities) runs about 28% below New York City, NY's $1,990, mainly because of rent.

How much more do you need to earn to live in Chicago than in New York City?

To keep rent near the recommended 30% of gross income, you'd want to earn roughly $50,000 a year in Chicago versus $68,000 in New York City.

Which has lower taxes, Chicago or New York City?

Chicago is taxed under Illinois's rules (a top state income tax rate of 4.95% and a 6.25% state sales tax); New York City under New York's (a top state income tax rate of 10.90% and a 4% state sales tax).

Chicago vs New York City Cost of Living 2026

Chicago

Illinois

$1,440/mo est.

New York City

New York

$1,990/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 $1,990 in New York City, NY. Overall, Chicago, IL is roughly 28% cheaper to live in day-to-day than New York City, NY, driven mainly by rent.

Median household income is $75,134 in Chicago, IL and $79,713 in New York City, NY — about 6% higher in New York City, NY. Illinois has a top state income tax rate of 4.95% and a 6.25% state sales tax; New York has a top state income tax rate of 10.90% and a 4% state sales tax.

Chicago, IL

New York City, NY

Rent

Studio

$1,186

$1,633

+38% in New York City, NY

1 Bedroom

$1,258

$1,705

+36% in New York City, NY

2 Bedroom

$1,406

$1,781

+27% in New York City, NY

3 Bedroom

$1,554

$2,065

+33% in New York City, NY

Buying a Home

Median Home Value

$315,200

$751,700

+138% in New York City, NY

Income

Median Household Income

$75,134

$79,713

+6% in New York City, NY

Metro Median Wage (annual)

$54,720

$61,430

+12% in New York City, NY

People & Lifestyle

Median Age

35.7 yr

38.0 yr

+2.3 yr in New York City, NY

Homeownership

45.5%

32.8%

+12.7 pp in Chicago, IL

Bachelor's+ (25+)

43.3%

41.0%

+2.3 pp in Chicago, IL

Avg Commute

33.5 min

40.6 min

+7.1 min in New York City, NY

Crime (per 100k/yr)

Violent Crime

539.8

690.9

+28% in New York City, NY

Property Crime

3,489.9

2,413.5

+31% 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

55.0°F

+2.3°F in New York City, NY

Annual Precipitation

38.0 in

49.9 in

+12.0 in in New York City, NY

Gas

Regular Gasoline

$4.82/gal

$4.44/gal

+8% in Chicago, IL

Area: Chicago vs New York City.

Public Transit

Base Fare (one-way)

$2.50

$3.00

+20% in New York City, NY

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

Utilities

Electricity (¢/kWh)

18.9

28.6

+51% in New York City, NY

Natural Gas ($/MCF)

$12.10

$18.90

+56% in New York City, NY

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

Groceries

Milk (gal)

$4.14

about equal

Bread (lb)

$1.79

$1.92

+7% in New York City, NY

Eggs (doz)

$3.63

$2.25

+38% in Chicago, IL

Ground Beef (lb)

$6.97

$6.90

+1% in Chicago, IL

Chicken (lb)

$2.15

$2.02

+6% in Chicago, IL

Bananas (lb)

$0.63

$0.68

+7% in New York City, NY

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

State Taxes

Sales Tax (IL / NY)

6.25%

+2.3 pp in IL

Income Tax (top rate)

4.95%

10.90%

+6.0 pp in NY

Chicago vs New York City — FAQ

Is it cheaper to live in Chicago or New York City?: Chicago, IL is cheaper. Its monthly baseline of $1,440 (1BR rent + utilities) runs about 28% below New York City, NY's $1,990, mainly because of rent.
How much more do you need to earn to live in Chicago than in New York City?: To keep rent near the recommended 30% of gross income, you'd want to earn roughly $50,000 a year in Chicago versus $68,000 in New York City.
Which has lower taxes, Chicago or New York City?: Chicago is taxed under Illinois's rules (a top state income tax rate of 4.95% and a 6.25% state sales tax); New York City under New York's (a top state income tax rate of 10.90% and a 4% 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).