Cost of Living: Chicago, IL vs Anchorage, AK (2026)

Chicago

Illinois
100
VS

Anchorage

Alaska
113

Chicago is 12% cheaper than Anchorage.

$1,380/mo ↓ 5%
Median Rent
$1,453/mo ↑ 5%
$75,134/yr ↓ 23%
Median Income
$98,152/yr ↑ 31%
$315,200 ↓ 16%
Home Value
$375,900 ↑ 19%
$1,502/mo ↓ 12%
Owner Costs
$1,698/mo ↑ 13%
2,707,648
Population
289,069

Tax Comparison

4.95%
Income Tax
0%
6.25%
State Sales Tax
0%
2.07%
Property Tax
1.04%

Affordability

22.0%
rent-to-income
Affordability
17.8%
rent-to-income

Detailed Comparison

When comparing Chicago, IL and Anchorage, AK, the overall cost of living indices are 100 and 113 respectively (national median = 100). Rent is $73/month cheaper in Chicago, saving renters about $876/year.

Median household income is $23,018/year higher in Anchorage. Home values also differ significantly — the median in Chicago is $315,200 compared to $375,900 in Anchorage.

Alaska has no state income tax, giving Anchorage residents a significant tax advantage over Illinois's 4.95% rate.

Frequently Asked Questions

Chicago vs Anchorage — common questions

Is Chicago or Anchorage cheaper to live in?
Based on our cost index, Chicago is cheaper to live in with an index of 100 compared to 113 (US average = 100).
What is the rent difference between Chicago and Anchorage?
Median rent in Chicago is $1,380/month and in Anchorage it's $1,453/month — a difference of $73/month.
Which city has higher income, Chicago or Anchorage?
Median household income is $75,134 in Chicago and $98,152 in Anchorage. Median household income is $23,018/year higher in Anchorage.
How do taxes compare between Illinois and Alaska?
Illinois has 4.95% income tax, 6.25% sales tax, and 2.07% property tax. Alaska has 0% income tax, 0% sales tax, and 1.04% property tax.
Should I move to Chicago or Anchorage?
It depends on your priorities. Chicago has a cost index of 100 with median rent of $1,380/mo, while Anchorage has a cost index of 113 with rent of $1,453/mo. Consider income potential, tax burden, and lifestyle preferences alongside raw cost data.
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