Is it cheaper to live in Chicago or Washington?

Chicago, IL is cheaper. Its monthly baseline of $1,440 (1BR rent + utilities) runs about 32% below Washington, DC's $2,130, mainly because of rent.

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

To keep rent near the recommended 30% of gross income, you'd want to earn roughly $50,000 a year in Chicago versus $75,000 in Washington.

Which has lower taxes, Chicago or Washington?

Chicago is taxed under Illinois's rules (a top state income tax rate of 4.95% and a 6.25% state sales tax); Washington under District of Columbia's (a top state income tax rate of 10.75% and a 6% state sales tax).

Chicago vs Washington Cost of Living 2026

Chicago

Illinois

$1,440/mo est.

Washington

District of Columbia

$2,130/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 $2,130 in Washington, DC. Overall, Chicago, IL is roughly 32% cheaper to live in day-to-day than Washington, DC, driven mainly by rent.

Median household income is $75,134 in Chicago, IL and $106,287 in Washington, DC — about 29% higher in Washington, DC. Illinois has a top state income tax rate of 4.95% and a 6.25% state sales tax; District of Columbia has a top state income tax rate of 10.75% and a 6% state sales tax.

Chicago, IL

Washington, DC

Rent

Studio

$1,186

$1,763

+49% in Washington, DC

1 Bedroom

$1,258

$1,885

+50% in Washington, DC

2 Bedroom

$1,406

$1,949

+39% in Washington, DC

3 Bedroom

$1,554

$2,249

+45% in Washington, DC

Buying a Home

Median Home Value

$315,200

$724,600

+130% in Washington, DC

Income

Median Household Income

$75,134

$106,287

+41% in Washington, DC

Metro Median Wage (annual)

$54,720

$71,060

+30% in Washington, DC

People & Lifestyle

Median Age

35.7 yr

34.9 yr

+0.8 yr in Chicago, IL

Homeownership

45.5%

41.1%

+4.4 pp in Chicago, IL

Bachelor's+ (25+)

43.3%

63.6%

+20.3 pp in Washington, DC

Avg Commute

33.5 min

30.3 min

+3.2 min in Chicago, IL

Crime (per 100k/yr)

Violent Crime

539.8

936

+73% in Washington, DC

Property Crime

3,489.9

3,627.1

+4% in Washington, DC

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

58.2°F

+5.5°F in Washington, DC

Annual Precipitation

38.0 in

39.7 in

+1.8 in in Washington, DC

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

$2.00

+20% in Chicago, IL

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

Utilities

Electricity (¢/kWh)

18.9

25.0

+33% in Washington, DC

Natural Gas ($/MCF)

$12.10

$18.01

+49% in Washington, DC

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

Groceries

Milk (gal)

$4.14

$4.16

+1% in Washington, DC

Bread (lb)

$1.79

$1.73

+3% in Chicago, IL

Eggs (doz)

$3.63

$2.19

+40% in Chicago, IL

Ground Beef (lb)

$6.97

$6.56

+6% in Chicago, IL

Chicken (lb)

$2.15

$1.90

+12% in Chicago, IL

Bananas (lb)

$0.63

$0.61

+3% in Chicago, IL

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

State Taxes

Sales Tax (IL / DC)

6.25%

+0.3 pp in IL

Income Tax (top rate)

4.95%

10.75%

+5.8 pp in DC

Chicago vs Washington — FAQ

Is it cheaper to live in Chicago or Washington?: Chicago, IL is cheaper. Its monthly baseline of $1,440 (1BR rent + utilities) runs about 32% below Washington, DC's $2,130, mainly because of rent.
How much more do you need to earn to live in Chicago than in Washington?: To keep rent near the recommended 30% of gross income, you'd want to earn roughly $50,000 a year in Chicago versus $75,000 in Washington.
Which has lower taxes, Chicago or Washington?: Chicago is taxed under Illinois's rules (a top state income tax rate of 4.95% and a 6.25% state sales tax); Washington under District of Columbia's (a top state income tax rate of 10.75% 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).