Cost of Living: Chicago, IL vs Houston, TX (2026)

Chicago

Illinois
100
VS

Houston

Texas
88

Chicago is 12% more expensive than Houston.

$1,380/mo ↑ 5%
Median Rent
$1,313/mo ↓ 5%
$75,134/yr ↑ 19%
Median Income
$62,894/yr ↓ 16%
$315,200 ↑ 24%
Home Value
$253,400 ↓ 20%
$1,502/mo ↑ 14%
Owner Costs
$1,316/mo ↓ 12%
2,707,648
Population
2,300,419

Tax Comparison

4.95%
Income Tax
0%
6.25%
Sales Tax
6.25%
2.07%
Property Tax
1.6%

Affordability

22.0%
rent-to-income
Affordability
25.1%
rent-to-income

Detailed Comparison

When comparing Chicago, IL and Houston, TX, the overall cost of living indices are 100 and 88 respectively (national median = 100). Rent is $67/month cheaper in Houston, saving renters about $804/year.

Median household income is $12,240/year higher in Chicago. Home values also differ significantly — the median in Chicago is $315,200 compared to $253,400 in Houston.

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

Frequently Asked Questions

Chicago vs Houston — common questions

Is Chicago or Houston cheaper to live in?
Based on our cost index, Houston is cheaper to live in with an index of 88 compared to 100 (US average = 100).
What is the rent difference between Chicago and Houston?
Median rent in Chicago is $1,380/month and in Houston it's $1,313/month — a difference of $67/month.
Which city has higher income, Chicago or Houston?
Median household income is $75,134 in Chicago and $62,894 in Houston. Median household income is $12,240/year higher in Chicago.
How do taxes compare between Illinois and Texas?
Illinois has 4.95% income tax, 6.25% sales tax, and 2.07% property tax. Texas has 0% income tax, 6.25% sales tax, and 1.6% property tax.
Should I move to Chicago or Houston?
It depends on your priorities. Chicago has a cost index of 100 with median rent of $1,380/mo, while Houston has a cost index of 88 with rent of $1,313/mo. Consider income potential, tax burden, and lifestyle preferences alongside raw cost data.
View Chicago details → View Houston details →