Is it cheaper to live in Chicago or Salem?

Salem, OR is cheaper. Its monthly baseline of $1,170 (1BR rent + utilities) runs about 21% below Chicago, IL's $1,490, mainly because of rent.

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

To keep rent near the recommended 30% of gross income, you'd want to earn roughly $50,000 a year in Chicago versus $40,000 in Salem.

Which has lower taxes, Chicago or Salem?

Chicago is taxed under Illinois's rules (a top state income tax rate of 4.95% and a 6.25% state sales tax); Salem under Oregon's (a top state income tax rate of 9.90% and no state sales tax).

Chicago vs Salem Cost of Living 2026

Chicago

Illinois

$1,490/mo est.

Salem

Oregon

$1,170/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 $1,170 in Salem, OR. Overall, Salem, OR is roughly 21% cheaper to live in day-to-day than Chicago, IL, driven mainly by rent.

Median household income is $75,134 in Chicago, IL and $71,900 in Salem, OR — about 4% higher in Chicago, IL. Illinois has a top state income tax rate of 4.95% and a 6.25% state sales tax; Oregon has a top state income tax rate of 9.90% and no state sales tax.

Chicago, IL

Salem, OR

Rent

Studio

$1,186

$1,075

+9% in Chicago, IL

1 Bedroom

$1,258

$989

+21% in Chicago, IL

2 Bedroom

$1,406

$1,337

+5% in Chicago, IL

3 Bedroom

$1,554

$1,778

+14% in Salem, OR

Buying a Home

Median Home Value

$315,200

$382,400

+21% in Salem, OR

Income

Median Household Income

$75,134

$71,900

+4% in Chicago, IL

Metro Median Wage (annual)

$54,720

$55,310

+1% in Salem, OR

People & Lifestyle

Median Age

35.7 yr

about equal

Homeownership

45.5%

55.7%

+10.2 pp in Salem, OR

Bachelor's+ (25+)

43.3%

31.4%

+11.9 pp in Chicago, IL

Avg Commute

33.5 min

22.4 min

+11.1 min in Chicago, IL

Crime (per 100k/yr)

Violent Crime

539.8

540.6

+0% in Salem, OR

Property Crime

3,489.9

2,878.6

+18% 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

53.0°F

+0.3°F in Salem, OR

Annual Precipitation

38.0 in

39.7 in

+1.7 in in Salem, OR

Gas

Regular Gasoline

$4.29/gal

$5.09/gal

+19% in Salem, OR

Area: Chicago vs West Coast (PADD 5).

Public Transit

Base Fare (one-way)

$2.50

—

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

Utilities

Electricity (¢/kWh)

23.9

16.3

+32% in Chicago, IL

Natural Gas ($/MCF)

$15.39

$20.59

+34% in Salem, OR

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

Groceries

Milk (gal)

$4.31

$4.82

+12% in Salem, OR

Bread (lb)

$1.66

$2.04

+23% in Salem, OR

Eggs (doz)

$3.63

$2.19

+40% in Chicago, IL

Ground Beef (lb)

$6.77

$7.36

+9% in Salem, OR

Chicken (lb)

$2.10

$2.01

+4% in Chicago, IL

Bananas (lb)

$0.62

$0.70

+14% in Salem, OR

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

State Taxes

Sales Tax (IL / OR)

6.25%

None

+6.3 pp in IL

Income Tax (top rate)

4.95%

9.90%

+5.0 pp in OR

Chicago vs Salem — FAQ

Is it cheaper to live in Chicago or Salem?: Salem, OR is cheaper. Its monthly baseline of $1,170 (1BR rent + utilities) runs about 21% below Chicago, IL's $1,490, mainly because of rent.
How much more do you need to earn to live in Chicago than in Salem?: To keep rent near the recommended 30% of gross income, you'd want to earn roughly $50,000 a year in Chicago versus $40,000 in Salem.
Which has lower taxes, Chicago or Salem?: Chicago is taxed under Illinois's rules (a top state income tax rate of 4.95% and a 6.25% state sales tax); Salem under Oregon's (a top state income tax rate of 9.90% and no 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).