Cost of Living: Chicago, IL vs Phoenix, AZ (2026)

Chicago

Illinois
100
VS

Phoenix

Arizona
109

Chicago is 9% cheaper than Phoenix.

$1,380/mo ↓ 5%
Median Rent
$1,458/mo ↑ 6%
$75,134/yr ↓ 2%
Median Income
$77,041/yr ↑ 3%
$315,200 ↓ 17%
Home Value
$381,900 ↑ 21%
$1,502/mo ↑ 5%
Owner Costs
$1,430/mo ↓ 5%
2,707,648
Population
1,624,832

Tax Comparison

4.95%
Income Tax
2.5%
6.25%
Sales Tax
5.6%
2.07%
Property Tax
0.62%

Affordability

22.0%
rent-to-income
Affordability
22.7%
rent-to-income

Detailed Comparison

When comparing Chicago, IL and Phoenix, AZ, the overall cost of living indices are 100 and 109 respectively (national median = 100). Rent is $78/month cheaper in Chicago, saving renters about $936/year.

Median household income is $1,907/year higher in Phoenix. Home values also differ significantly — the median in Chicago is $315,200 compared to $381,900 in Phoenix.

Arizona has a lower income tax rate, making Phoenix slightly more tax-friendly.

Frequently Asked Questions

Chicago vs Phoenix — common questions

Is Chicago or Phoenix cheaper to live in?
Based on our cost index, Chicago is cheaper to live in with an index of 100 compared to 109 (US average = 100).
What is the rent difference between Chicago and Phoenix?
Median rent in Chicago is $1,380/month and in Phoenix it's $1,458/month — a difference of $78/month.
Which city has higher income, Chicago or Phoenix?
Median household income is $75,134 in Chicago and $77,041 in Phoenix. Median household income is $1,907/year higher in Phoenix.
How do taxes compare between Illinois and Arizona?
Illinois has 4.95% income tax, 6.25% sales tax, and 2.07% property tax. Arizona has 2.5% income tax, 5.6% sales tax, and 0.62% property tax.
Should I move to Chicago or Phoenix?
It depends on your priorities. Chicago has a cost index of 100 with median rent of $1,380/mo, while Phoenix has a cost index of 109 with rent of $1,458/mo. Consider income potential, tax burden, and lifestyle preferences alongside raw cost data.
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