CITY COMPARISON
Chicago vs Denver 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 Denver trades a Great Lakes metro for the Front Range, and the cost comparison is closer than it looks. Both states tax income at a low flat rate.
Chicago's overall cost of living is lower than Denver's, but Chicago rent is surprisingly high for a Midwest city and the sales tax is steep. Denver counters with cheaper rent and a lighter sales tax.
Is Chicago or Denver cheaper to live in?
At a $100,000 salary, moving from Chicago to Denver leaves your yearly disposable income close to unchanged. At a $150,000 salary the two cities come out about even.
It is close to a wash. Denver edges ahead on rent and sales tax, Chicago edges ahead on overall cost of living, and the income tax rates are nearly identical. The decision usually comes down to lifestyle, not the spreadsheet.
DISPOSABLE INCOME: MOVING CHICAGO → DENVER
AT A $100,000 SALARY
roughly a wash
AT A $150,000 SALARY
roughly a wash
Assumes the same gross salary in both cities (the remote-work case) and a single filer renting at the local median. Positive means Denver leaves more money after tax, housing, and everyday costs.
Full cost breakdown: Chicago vs Denver
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 | Denver |
|---|---|---|
| Gross salary | $100,000 | $100,000 |
| Federal income tax | -$15,000 | -$15,000 |
| State income tax (4.95%) Denver: (4.4%) | -$4,950 | -$4,400 |
| FICA (Social Security + Medicare) | -$7,650 | -$7,650 |
| Housing (median rent) ($1,730/mo) Denver: ($1,470/mo) | -$20,760 | -$17,640 |
| Other living costs (COL index 105) Denver: (COL index 128) | -$30,750 | -$34,200 |
| Sales tax on spending (8.85%) Denver: (7.8%) | -$1,905 | -$1,867 |
| Disposable income / year | $18,985 | $19,243 |
AT A $150,000 SALARY
| Line item | Chicago | Denver |
|---|---|---|
| Gross salary | $150,000 | $150,000 |
| Federal income tax | -$27,000 | -$27,000 |
| State income tax (4.95%) Denver: (4.4%) | -$7,425 | -$6,600 |
| FICA (Social Security + Medicare) | -$11,475 | -$11,475 |
| Housing (median rent) ($1,730/mo) Denver: ($1,470/mo) | -$20,760 | -$17,640 |
| Other living costs (COL index 105) Denver: (COL index 128) | -$30,750 | -$34,200 |
| Sales tax on spending (8.85%) Denver: (7.8%) | -$1,905 | -$1,867 |
| Disposable income / year | $50,685 | $51,218 |
Chicago vs Denver: taxes, rent, and schools at a glance
| Metric | Chicago | Denver |
|---|---|---|
| State income tax | 4.95% | 4.4% |
| Median 1-bedroom rent | $1,730/mo | $1,470/mo |
| Combined sales tax | 8.85% | 7.8% |
| Cost-of-living index (US avg = 100) | 105 | 128 |
| School composite rating (1-10) | 5/10 | 7/10 |
Who should pick Chicago?
Pick Chicago if you want a dense, transit-served big city with major-league everything and a lower overall cost of living. The high rent and sales tax are the price of that, but the income tax is mild.
Who should pick Denver?
Choose Denver if outdoor access and a sunnier climate matter, and you would rather pay less in rent and sales tax. The numbers are close enough that this is a lifestyle call as much as a financial one.
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 Denver 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.