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

Chicago

Illinois
100
VS

Tempe

Arizona
120

Chicago is 17% cheaper than Tempe.

$1,380/mo ↓ 15%
Median Rent
$1,623/mo ↑ 18%
$75,134/yr ↓ 3%
Median Income
$77,643/yr ↑ 3%
$315,200 ↓ 25%
Home Value
$421,900 ↑ 34%
$1,502/mo ↓ 3%
Owner Costs
$1,554/mo ↑ 3%
2,707,648
Population
186,419

Tax Comparison

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

Affordability

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

Detailed Comparison

When comparing Chicago, IL and Tempe, AZ, the overall cost of living indices are 100 and 120 respectively (national median = 100). Rent is $243/month cheaper in Chicago, saving renters about $2,916/year.

Median household income is $2,509/year higher in Tempe. Home values also differ significantly — the median in Chicago is $315,200 compared to $421,900 in Tempe.

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

Frequently Asked Questions

Chicago vs Tempe — common questions

Is Chicago or Tempe cheaper to live in?
Based on our cost index, Chicago is cheaper to live in with an index of 100 compared to 120 (US average = 100).
What is the rent difference between Chicago and Tempe?
Median rent in Chicago is $1,380/month and in Tempe it's $1,623/month — a difference of $243/month.
Which city has higher income, Chicago or Tempe?
Median household income is $75,134 in Chicago and $77,643 in Tempe. Median household income is $2,509/year higher in Tempe.
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 Tempe?
It depends on your priorities. Chicago has a cost index of 100 with median rent of $1,380/mo, while Tempe has a cost index of 120 with rent of $1,623/mo. Consider income potential, tax burden, and lifestyle preferences alongside raw cost data.
View Chicago details → View Tempe details →

More Comparisons

Other cost of living comparisons for Chicago and Tempe

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