CITY COMPARISON
Chicago vs Dallas Cost of Living: Which Is Cheaper in 2026?
Data updated May 2026. Rent from Zillow ZORI, taxes from the Tax Foundation, cost-of-living index from BEA.
Chicago to Dallas is one of the most-traveled Midwest-to-South moves. The Illinois tax bill is the push, the Texas job market is the pull.
Illinois taxes income at a flat 4.95 percent. Texas taxes wage income at zero. Dallas rent runs below Chicago's, and the cost of living is closer to the national average. Both cities use a similar sales tax.
Is Chicago or Dallas cheaper to live in?
At a $100,000 salary, moving from Chicago to Dallas frees up roughly $10,800 a year in disposable income. At $150,000 the gap widens to about $13,300 a year in Dallas's favor.
Dallas wins on numbers. No state income tax, lower rent, and a cost of living that frees up real money. Chicago competes on transit, density, and big-city culture, not on cost.
DISPOSABLE INCOME: MOVING CHICAGO → DALLAS
AT A $100,000 SALARY
in Dallas's favor
AT A $150,000 SALARY
in Dallas's favor
Assumes the same gross salary in both cities (the remote-work case) and a single filer renting at the local median. Positive means Dallas leaves more money after tax, housing, and everyday costs.
Full cost breakdown: Chicago vs Dallas
Here is where every dollar goes in each city, at two salary levels. Taxes, housing, and everyday costs are all in.
AT A $100,000 SALARY
| Line item | Chicago | Dallas |
|---|---|---|
| Gross salary | $100,000 | $100,000 |
| Federal income tax | -$15,000 | -$15,000 |
| State income tax (4.95%) Dallas: (0%) | -$4,950 | -$0 |
| FICA (Social Security + Medicare) | -$7,650 | -$7,650 |
| Housing (median rent) ($1,730/mo) Dallas: ($1,290/mo) | -$20,760 | -$15,480 |
| Other living costs (COL index 105) Dallas: (COL index 102) | -$30,750 | -$30,300 |
| Sales tax on spending (8.85%) Dallas: (8.2%) | -$1,905 | -$1,739 |
| Disposable income / year | $18,985 | $29,831 |
AT A $150,000 SALARY
| Line item | Chicago | Dallas |
|---|---|---|
| Gross salary | $150,000 | $150,000 |
| Federal income tax | -$27,000 | -$27,000 |
| State income tax (4.95%) Dallas: (0%) | -$7,425 | -$0 |
| FICA (Social Security + Medicare) | -$11,475 | -$11,475 |
| Housing (median rent) ($1,730/mo) Dallas: ($1,290/mo) | -$20,760 | -$15,480 |
| Other living costs (COL index 105) Dallas: (COL index 102) | -$30,750 | -$30,300 |
| Sales tax on spending (8.85%) Dallas: (8.2%) | -$1,905 | -$1,739 |
| Disposable income / year | $50,685 | $64,006 |
Chicago vs Dallas: taxes, rent, and schools at a glance
| Metric | Chicago | Dallas |
|---|---|---|
| State income tax | 4.95% | None |
| Median 1-bedroom rent | $1,730/mo | $1,290/mo |
| Combined sales tax | 8.85% | 8.2% |
| Cost-of-living index (US avg = 100) | 105 | 102 |
| School composite rating (1-10) | 5/10 | 6/10 |
Who should pick Chicago?
Stay in Chicago if you want a transit-served big city with major-league everything. The flat tax is not punishing for moderate incomes, and Chicago's urban core is hard to find elsewhere.
Who should pick Dallas?
Pick Dallas if you want a no-income-tax raise and a huge varied job market. The metro is enormous, so finding work in your field rarely requires a remote setup.
How we calculated this
Disposable income is gross salary minus federal income tax, state income tax, FICA, housing, everyday non-housing costs, and sales tax on discretionary spending. Federal tax uses 2026 effective rates after the standard deduction for a single filer. State income tax is a single-bracket approximation for mid-six-figure earners. Housing is the median 1-bedroom rent. Non-housing costs scale with the BEA cost-of-living index. Sales tax is applied to roughly 70 percent of discretionary spending, since groceries and many services are reduced-rate or exempt in most states.
The numbers on this page assume the same gross salary in both cities. That is the remote-work scenario, and it is the cleanest way to isolate the cost-of-living difference. If a new job would rebase your salary by city, plug both real offers into the tool below.
Run your own Chicago vs Dallas numbers
The interactive Move-To-City tool lets you set different salaries for each city, enter your actual rent, switch filing status, and see the full FIRE-timeline impact of the move.
Open the Move-To-City tool →KEEP READING
Educational only, not financial advice. Cost-of-living estimates are modeled approximations from public data and will not match any individual budget exactly. Verify rent, tax, and salary figures for your own situation before making a move.