Illinois · Population 2,707,648 · Updated March 2026
How far your income goes in Chicago
State-level tax rates that affect your costs
Chicago has a cost of living close to the national average, offering a balanced mix of expenses and amenities. With a cost index of 100 (where 100 equals the national median), Chicago residents can expect to pay median rent of $1,380/month while earning a median household income of $75,134/year.
The median home value in Chicago, IL is $315,200, with typical monthly owner costs around $1,502 including mortgage, insurance, and taxes. The median rent-to-income ratio of 22.0% means housing is relatively affordable here — well below the 30% threshold that HUD considers cost-burdened.
Illinois has a moderate income tax rate of 4.95%. Combined with a 6.25% sales tax rate and 2.07% effective property tax rate, the overall tax environment is a factor in the total cost of living in Chicago.
Common questions about living costs in Chicago
Similar-sized cities to compare