| Index | Chicago | Illinois | National |
| Cost of living | 114 | 98 | 100 |
| Groceries | 101 | 100 | 100 |
| Health care | 100 | 100 | 100 |
| Housing | 138 | 95 | 100 |
| Transportation | 109 | 101 | 100 |
| Utilities | 103 | 99 | 100 |
| Lifestyle & Entertainment | 104 | 100 | 100 |
| Household Items | 101 | 100 | 100 |
| Education & Childcare | 110 | 100 | 100 |
Knowing the cost of living in Chicago allows individuals to create a realistic budget. This helps them understand how their income will cover expenses and whether they need to make financial adjustments. The cost of living in any region can fluctuate due to various factors. To assess the cost of living consistently across different areas, a national average of 100 serves as the basis for the cost of living index. The cost of living in Chicago stands at 114, marking it 14% higher than the national average.
Housing costs significantly influence the Chicago cost of living index, typically accounting for a substantial portion of one's post-tax income. Regrettably, within this particular region, expenses related to both residential ownership and renting exceeded those observed in an average city by 38.1%. This entails elements such as housing and rental prices, mortgage interest rates and insurance costs.
The most insightful perspective on a city comes from its residents. We recently surveyed 97 locals to gauge their perception of the cost of living in Chicago. The feedback revealed that 47% of respondents found the cost of living to be reasonable, with prices on the decline, while 53% regarded it as notably expensive with prices that continue to rise.
Is Chicago affordable? It's a key consideration when pondering a move, as affordability often shapes your choices. The cost of living index (we discussed it earlier), coupled with housing costs and income levels, serves as the cornerstone for determining a location's affordability. Take Chicago, for instance, where the median home price falls 46.4% higher than the national average, and monthly rent rates are 18.8% higher than usual. Additionally, median income levels contribute to the equation, with Chicago flaunting a median household income of $92,078, 13.2% higher than the national norm.
Taxes: Cities that enforce higher taxes, covering both sales taxes and income taxes, can be a factor contributing to a higher cost of living. Paying more in taxes for everyday essentials like clothing and food inevitably leads to higher expenses. A higher income tax rate can further contribute to an overall elevated cost of living. In Chicago, the baseline sales tax rate begins at 6.25%, and income tax rates start at 4.95%.
Urbanization: Urban areas with extensive amenities and job opportunities tend to have a higher cost of living due to increased demand for services and relocation, resulting in higher home prices and higher rents. Less densely populated rural areas, or areas with less demand tend to have fewer amenities and slower job growth, which results in a lower cost of living.
Groceries: Over the past 2-3 years, grocery expenses have experienced substantial upward trends. In certain markets, food prices have surged by over 20% during this period, while others have witnessed more modest increases. These fluctuations in food costs can wield significant influence over the overall cost of living in a given region. In Chicago, the groceries index is 0.8% higher than the national average.
The Chicago cost of living data displayed above uses a U.S. average baseline of 100 to provide a practical way to compare living expenses across cities. Housing estimates incorporate U.S. Census home price and rental data, while all other values are generated using AI-assisted models based on everyday expense expectations, regional pricing trends, climate, transportation patterns, and local economic conditions. These values are designed for directional city-to-city comparisons.
| Cost of living index | |
| Groceries index | |
| Health care index | |
| Housing index | |
| Transportation index | |
| Utilities index | |
| Lifestyle index | |
| Household index | |
| Educare index |
| Median Income | Per Year | Per Month | Max Budget (28% DTI) | Max Budget (36% DTI) |
| Owners | $133,964 | $11,164 | $3,126 | $4,019 |
| Renters | $65,918 | $5,493 | $1,538 | $1,978 |
| State | General Sales Tax | With Max Surtax |
| Illinois | 6.25% | 10.25% |
| State | Income Tax (Low) | Income Tax (High) |
| Illinois | 4.95% | 4.95% |
| City | Population | Cost of Living Index | National Avg. |
| Hodgkins, IL | 1,817 | 83 | 16.9% |
| Hometown, IL | 4,350 | 89 | 11.2% |
| Calumet Park, IL | 8,694 | 93 | 7.5% |
| Merrionette Park, IL | 2,017 | 93 | 6.6% |
| Whiting, IN | 4,986 | 94 | 6.3% |
| Chicago, IL | 2,804,582 | 114 | 14.0% |
| City | Population | Cost of Living Index | National Avg. |
| Toronto, ON | 3,013,752 | n/a | |
| Houston, TX | 2,385,298 | 103 | 2.8% |
| Montréal, QC | 1,811,008 | n/a | |
| Phoenix, AZ | 1,698,457 | 113 | 12.9% |
| Philadelphia, PA | 1,632,157 | 102 | 2.0% |
| Chicago, IL | 2,804,582 | 114 | 14.0% |
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