Is it cheaper to live in Chicago or Paterson?

Paterson, NJ is cheaper. Its monthly baseline of $1,430 (1BR rent + utilities) runs about 3% below Chicago, IL's $1,470, mainly because of rent.

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

To keep rent near the recommended 30% of gross income, you'd want to earn roughly $50,000 a year in Chicago versus $47,000 in Paterson.

Which has lower taxes, Chicago or Paterson?

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

Chicago vs Paterson Cost of Living 2026

Chicago

Illinois

$1,470/mo est.

Paterson

New Jersey

$1,430/mo est.

Monthly estimate = 1BR rent + electricity + gas

A one-person monthly baseline (1BR rent plus typical utilities) runs $1,470 in Chicago, IL versus $1,430 in Paterson, NJ. Overall, Paterson, NJ is roughly 3% cheaper to live in day-to-day than Chicago, IL, driven mainly by rent.

Median household income is $75,134 in Chicago, IL and $53,766 in Paterson, NJ — about 28% 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

Paterson, NJ

Rent

Studio

$1,186

$786

+34% in Chicago, IL

1 Bedroom

$1,258

$1,183

+6% in Chicago, IL

2 Bedroom

$1,406

$1,468

+4% in Paterson, NJ

3 Bedroom

$1,554

$1,729

+11% in Paterson, NJ

Buying a Home

Median Home Value

$315,200

$335,400

+6% in Paterson, NJ

Income

Median Household Income

$75,134

$53,766

+28% in Chicago, IL

Metro Median Wage (annual)

$54,720

$61,430

+12% in Paterson, NJ

People & Lifestyle

Median Age

35.7 yr

33.3 yr

+2.4 yr in Chicago, IL

Homeownership

45.5%

26.2%

+19.3 pp in Chicago, IL

Bachelor's+ (25+)

43.3%

12.5%

+30.8 pp in Chicago, IL

Avg Commute

33.5 min

23.1 min

+10.4 min in Chicago, IL

Crime (per 100k/yr)

Violent Crime

539.8

1,010.1

+87% in Paterson, NJ

Property Crime

3,489.9

2,391.4

+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

52.2°F

+0.5°F in Chicago, IL

Annual Precipitation

38.0 in

49.0 in

+11.1 in in Paterson, NJ

Gas

Regular Gasoline

$4.24/gal

$3.94/gal

+7% 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)

19.9

24.9

+25% in Paterson, NJ

Natural Gas ($/MCF)

$19.71

$17.68

+10% in Chicago, IL

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 Paterson, NJ

Eggs (doz)

$3.63

$2.19

+40% in Chicago, IL

Ground Beef (lb)

$6.77

$6.90

+2% in Paterson, NJ

Chicken (lb)

$2.10

$2.19

+4% in Paterson, NJ

Bananas (lb)

$0.62

$0.69

+12% in Paterson, 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 Paterson — FAQ

Is it cheaper to live in Chicago or Paterson?: Paterson, NJ is cheaper. Its monthly baseline of $1,430 (1BR rent + utilities) runs about 3% below Chicago, IL's $1,470, mainly because of rent.
How much more do you need to earn to live in Chicago than in Paterson?: To keep rent near the recommended 30% of gross income, you'd want to earn roughly $50,000 a year in Chicago versus $47,000 in Paterson.
Which has lower taxes, Chicago or Paterson?: Chicago is taxed under Illinois's rules (a top state income tax rate of 4.95% and a 6.25% state sales tax); Paterson 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).