CITY COMPARISON
Chicago vs Nashville 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 Nashville has become a steady migration, and the income tax is the headline. Illinois taxes income at a flat rate near five percent. Tennessee taxes wage income at zero.
Nashville's twist is sales tax. Tennessee runs one of the highest combined sales tax rates in the country, so some of what you save on income tax comes back at the register. Rent is lower in Nashville, and the overall cost of living is similar.
Is Chicago or Nashville cheaper to live in?
At a $100,000 salary, moving from Chicago to Nashville frees up roughly $8,900 a year in disposable income. At $150,000 the gap widens to about $11,400 a year in Nashville's favor.
Nashville wins for most earners. No state income tax beats Illinois's flat rate, and rent is lower. The high Tennessee sales tax claws back part of the gain, so the advantage is real but smaller than the income tax line alone suggests.
DISPOSABLE INCOME: MOVING CHICAGO → NASHVILLE
AT A $100,000 SALARY
in Nashville's favor
AT A $150,000 SALARY
in Nashville'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 Nashville leaves more money after tax, housing, and everyday costs.
Full cost breakdown: Chicago vs Nashville
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 | Nashville |
|---|---|---|
| Gross salary | $100,000 | $100,000 |
| Federal income tax | -$15,000 | -$15,000 |
| State income tax (4.95%) Nashville: (0%) | -$4,950 | -$0 |
| FICA (Social Security + Medicare) | -$7,650 | -$7,650 |
| Housing (median rent) ($1,730/mo) Nashville: ($1,390/mo) | -$20,760 | -$16,680 |
| Other living costs (COL index 105) | -$30,750 | -$30,750 |
| Sales tax on spending (8.85%) Nashville: (9.55%) | -$1,905 | -$2,056 |
| Disposable income / year | $18,985 | $27,864 |
AT A $150,000 SALARY
| Line item | Chicago | Nashville |
|---|---|---|
| Gross salary | $150,000 | $150,000 |
| Federal income tax | -$27,000 | -$27,000 |
| State income tax (4.95%) Nashville: (0%) | -$7,425 | -$0 |
| FICA (Social Security + Medicare) | -$11,475 | -$11,475 |
| Housing (median rent) ($1,730/mo) Nashville: ($1,390/mo) | -$20,760 | -$16,680 |
| Other living costs (COL index 105) | -$30,750 | -$30,750 |
| Sales tax on spending (8.85%) Nashville: (9.55%) | -$1,905 | -$2,056 |
| Disposable income / year | $50,685 | $62,039 |
Chicago vs Nashville: taxes, rent, and schools at a glance
| Metric | Chicago | Nashville |
|---|---|---|
| State income tax | 4.95% | None |
| Median 1-bedroom rent | $1,730/mo | $1,390/mo |
| Combined sales tax | 8.85% | 9.55% |
| Cost-of-living index (US avg = 100) | 105 | 105 |
| School composite rating (1-10) | 5/10 | 6/10 |
Who should pick Chicago?
Stay in Chicago if you value a dense, transit-served big city and your job is rooted there. Illinois's flat tax is not punishing for moderate incomes, and Chicago's housing, while not cheap, is reasonable for a city its size.
Who should pick Nashville?
Pick Nashville if you want a no-income-tax raise and lower rent. Just budget for the sales tax. It is high enough to notice on every large purchase, so the headline savings is not the whole story.
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 Nashville 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.