Is it cheaper to live in Chicago or Philadelphia?

Philadelphia, PA is cheaper. Its monthly baseline of $1,400 (1BR rent + utilities) runs about 3% below Chicago, IL's $1,440, mainly because of rent.

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

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 Philadelphia.

Which has lower taxes, Chicago or Philadelphia?

Chicago is taxed under Illinois's rules (a top state income tax rate of 4.95% and a 6.25% state sales tax); Philadelphia under Pennsylvania's (a top state income tax rate of 3.07% and a 6% state sales tax).

Chicago vs Philadelphia Cost of Living 2026

Chicago

Illinois

$1,440/mo est.

Philadelphia

Pennsylvania

$1,400/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 $1,400 in Philadelphia, PA. Overall, Philadelphia, PA 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 $60,698 in Philadelphia, PA — about 19% higher in Chicago, IL. Illinois has a top state income tax rate of 4.95% and a 6.25% state sales tax; Pennsylvania has a top state income tax rate of 3.07% and a 6% state sales tax.

Chicago, IL

Philadelphia, PA

Rent

Studio

$1,186

$1,126

+5% in Chicago, IL

1 Bedroom

$1,258

$1,189

+5% in Chicago, IL

2 Bedroom

$1,406

$1,394

+1% in Chicago, IL

3 Bedroom

$1,554

$1,406

+10% in Chicago, IL

Buying a Home

Median Home Value

$315,200

$232,400

+26% in Chicago, IL

Income

Median Household Income

$75,134

$60,698

+19% in Chicago, IL

Metro Median Wage (annual)

$54,720

$54,310

+1% in Chicago, IL

People & Lifestyle

Median Age

35.7 yr

35.1 yr

+0.6 yr in Chicago, IL

Homeownership

45.5%

52.3%

+6.8 pp in Philadelphia, PA

Bachelor's+ (25+)

43.3%

34.6%

+8.7 pp in Chicago, IL

Avg Commute

33.5 min

32.0 min

+1.5 min in Chicago, IL

Crime (per 100k/yr)

Violent Crime

539.8

916.8

+70% in Philadelphia, PA

Property Crime

3,489.9

4,614.3

+32% in Philadelphia, PA

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

57.1°F

+4.4°F in Philadelphia, PA

Annual Precipitation

38.0 in

48.5 in

+10.5 in in Philadelphia, PA

Gas

Regular Gasoline

$4.82/gal

$4.30/gal

+11% in Chicago, IL

Area: Chicago vs East Coast (PADD 1).

Public Transit

Base Fare (one-way)

$2.50

about equal

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

Utilities

Electricity (¢/kWh)

18.9

20.9

+11% in Philadelphia, PA

Natural Gas ($/MCF)

$12.10

$16.67

+38% in Philadelphia, PA

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 Philadelphia, PA

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 Philadelphia, PA

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

State Taxes

Sales Tax (IL / PA)

6.25%

+0.3 pp in IL

Income Tax (top rate)

4.95%

3.07%

+1.9 pp in IL

Chicago vs Philadelphia — FAQ

Is it cheaper to live in Chicago or Philadelphia?: Philadelphia, PA is cheaper. Its monthly baseline of $1,400 (1BR rent + utilities) runs about 3% below Chicago, IL's $1,440, mainly because of rent.
How much more do you need to earn to live in Chicago than in Philadelphia?: 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 Philadelphia.
Which has lower taxes, Chicago or Philadelphia?: Chicago is taxed under Illinois's rules (a top state income tax rate of 4.95% and a 6.25% state sales tax); Philadelphia under Pennsylvania's (a top state income tax rate of 3.07% and a 6% 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).