Cost of Living: Chicago, IL vs Memphis, TN (2026)

Chicago

Illinois
100
VS

Memphis

Tennessee
68

Chicago is 47% more expensive than Memphis.

$1,380/mo ↑ 23%
Median Rent
$1,123/mo ↓ 19%
$75,134/yr ↑ 47%
Median Income
$51,211/yr ↓ 32%
$315,200 ↑ 101%
Home Value
$157,100 ↓ 50%
$1,502/mo ↑ 38%
Owner Costs
$1,087/mo ↓ 28%
2,707,648
Population
629,063

Tax Comparison

4.95%
Income Tax
0%
6.25%
State Sales Tax
7.0%
2.07%
Property Tax
0.64%

Affordability

22.0%
rent-to-income
Affordability
26.3%
rent-to-income

Detailed Comparison

When comparing Chicago, IL and Memphis, TN, the overall cost of living indices are 100 and 68 respectively (national median = 100). Rent is $257/month cheaper in Memphis, saving renters about $3,084/year.

Median household income is $23,923/year higher in Chicago. Home values also differ significantly — the median in Chicago is $315,200 compared to $157,100 in Memphis.

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

Frequently Asked Questions

Chicago vs Memphis — common questions

Is Chicago or Memphis cheaper to live in?
Based on our cost index, Memphis is cheaper to live in with an index of 68 compared to 100 (US average = 100).
What is the rent difference between Chicago and Memphis?
Median rent in Chicago is $1,380/month and in Memphis it's $1,123/month — a difference of $257/month.
Which city has higher income, Chicago or Memphis?
Median household income is $75,134 in Chicago and $51,211 in Memphis. Median household income is $23,923/year higher in Chicago.
How do taxes compare between Illinois and Tennessee?
Illinois has 4.95% income tax, 6.25% sales tax, and 2.07% property tax. Tennessee has 0% income tax, 7.0% sales tax, and 0.64% property tax.
Should I move to Chicago or Memphis?
It depends on your priorities. Chicago has a cost index of 100 with median rent of $1,380/mo, while Memphis has a cost index of 68 with rent of $1,123/mo. Consider income potential, tax burden, and lifestyle preferences alongside raw cost data.
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