Is it cheaper to live in Chicago or Newark?

Newark, NJ is cheaper. Its monthly baseline of $1,210 (1BR rent + utilities) runs about 19% below Chicago, IL's $1,490, mainly because of rent.

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

To keep rent near the recommended 30% of gross income, you'd want to earn roughly $50,000 a year in Chicago versus $39,000 in Newark.

Which has lower taxes, Chicago or Newark?

Chicago is taxed under Illinois's rules (a top state income tax rate of 4.95% and a 6.25% state sales tax); Newark under New Jersey's (a top state income tax rate of 10.75% and a 6.625% state sales tax).

Chicago vs Newark Cost of Living 2026

Chicago

Illinois

$1,490/mo est.

Newark

New Jersey

$1,210/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 $1,210 in Newark, NJ. Overall, Newark, NJ is roughly 19% cheaper to live in day-to-day than Chicago, IL, driven mainly by rent.

Median household income is $75,134 in Chicago, IL and $48,416 in Newark, NJ — about 36% higher in Chicago, IL. Illinois has a top state income tax rate of 4.95% and a 6.25% state sales tax; New Jersey has a top state income tax rate of 10.75% and a 6.625% state sales tax.

Chicago, IL

Newark, NJ

Rent

Studio

$1,186

$1,111

+6% in Chicago, IL

1 Bedroom

$1,258

$978

+22% in Chicago, IL

2 Bedroom

$1,406

$1,386

+1% in Chicago, IL

3 Bedroom

$1,554

$1,695

+9% in Newark, NJ

Buying a Home

Median Home Value

$315,200

$337,800

+7% in Newark, NJ

Income

Median Household Income

$75,134

$48,416

+36% in Chicago, IL

Metro Median Wage (annual)

$54,720

$61,430

+12% in Newark, NJ

People & Lifestyle

Median Age

35.7 yr

34.8 yr

+0.9 yr in Chicago, IL

Homeownership

45.5%

24.1%

+21.4 pp in Chicago, IL

Bachelor's+ (25+)

43.3%

17.4%

+25.9 pp in Chicago, IL

Avg Commute

33.5 min

33.2 min

+0.3 min in Chicago, IL

Crime (per 100k/yr)

Violent Crime

539.8

582.5

+8% in Newark, NJ

Property Crime

3,489.9

1,961.8

+44% 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

54.9°F

+2.2°F in Newark, NJ

Annual Precipitation

38.0 in

46.3 in

+8.3 in in Newark, NJ

Gas

Regular Gasoline

$4.29/gal

$3.86/gal

+10% in Chicago, IL

Area: Chicago vs East Coast (PADD 1).

Public Transit

Base Fare (one-way)

$2.50

—

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

Utilities

Electricity (¢/kWh)

23.9

23.3

+2% in Chicago, IL

Natural Gas ($/MCF)

$15.39

$15.93

+4% in Newark, NJ

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

Groceries

Milk (gal)

$4.31

about equal

Bread (lb)

$1.66

$1.92

+16% in Newark, NJ

Eggs (doz)

$3.63

$2.19

+40% in Chicago, IL

Ground Beef (lb)

$6.77

$6.90

+2% in Newark, NJ

Chicken (lb)

$2.10

$2.19

+4% in Newark, NJ

Bananas (lb)

$0.62

$0.69

+12% in Newark, NJ

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

State Taxes

Sales Tax (IL / NJ)

6.25%

6.625%

+0.4 pp in NJ

Income Tax (top rate)

4.95%

10.75%

+5.8 pp in NJ

Chicago vs Newark — FAQ

Is it cheaper to live in Chicago or Newark?: Newark, NJ is cheaper. Its monthly baseline of $1,210 (1BR rent + utilities) runs about 19% below Chicago, IL's $1,490, mainly because of rent.
How much more do you need to earn to live in Chicago than in Newark?: To keep rent near the recommended 30% of gross income, you'd want to earn roughly $50,000 a year in Chicago versus $39,000 in Newark.
Which has lower taxes, Chicago or Newark?: Chicago is taxed under Illinois's rules (a top state income tax rate of 4.95% and a 6.25% state sales tax); Newark under New Jersey's (a top state income tax rate of 10.75% and a 6.625% 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).