CITY COMPARISON
NYC vs Chicago 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.
New York to Chicago trades the most expensive big city in the country for a large, dense one that costs noticeably less. Both are real big-city options, with transit and major industry.
New York stacks a state and city income tax. Illinois uses a flat rate near five percent with no separate city income tax. Chicago's cost of living is far below New York's, though its rent is still high for the Midwest.
Is NYC or Chicago cheaper to live in?
At a $100,000 salary, moving from NYC to Chicago frees up roughly $26,000 a year in disposable income. At $150,000 the gap widens to about $27,000 a year in Chicago's favor.
Chicago wins clearly. A single flat income tax instead of New York's stacked rates, and a much lower overall cost of living. Chicago rent is not cheap, but it is well under New York's, so the gap holds.
DISPOSABLE INCOME: MOVING NYC → CHICAGO
AT A $100,000 SALARY
in Chicago's favor
AT A $150,000 SALARY
in Chicago'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 Chicago leaves more money after tax, housing, and everyday costs.
Full cost breakdown: NYC vs Chicago
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 | NYC | Chicago |
|---|---|---|
| Gross salary | $100,000 | $100,000 |
| Federal income tax | -$15,000 | -$15,000 |
| State income tax (6.85%) Chicago: (4.95%) | -$6,850 | -$4,950 |
| FICA (Social Security + Medicare) | -$7,650 | -$7,650 |
| Housing (median rent) ($2,660/mo) Chicago: ($1,730/mo) | -$31,920 | -$20,760 |
| Other living costs (COL index 187) Chicago: (COL index 105) | -$43,050 | -$30,750 |
| Sales tax on spending (8.53%) Chicago: (8.85%) | -$2,571 | -$1,905 |
| Disposable income / year | -$7,041 | $18,985 |
AT A $150,000 SALARY
| Line item | NYC | Chicago |
|---|---|---|
| Gross salary | $150,000 | $150,000 |
| Federal income tax | -$27,000 | -$27,000 |
| State income tax (6.85%) Chicago: (4.95%) | -$10,275 | -$7,425 |
| FICA (Social Security + Medicare) | -$11,475 | -$11,475 |
| Housing (median rent) ($2,660/mo) Chicago: ($1,730/mo) | -$31,920 | -$20,760 |
| Other living costs (COL index 187) Chicago: (COL index 105) | -$43,050 | -$30,750 |
| Sales tax on spending (8.53%) Chicago: (8.85%) | -$2,571 | -$1,905 |
| Disposable income / year | $23,709 | $50,685 |
NYC vs Chicago: taxes, rent, and schools at a glance
| Metric | NYC | Chicago |
|---|---|---|
| State income tax | 6.85% | 4.95% |
| Median 1-bedroom rent | $2,660/mo | $1,730/mo |
| Combined sales tax | 8.53% | 8.85% |
| Cost-of-living index (US avg = 100) | 187 | 105 |
| School composite rating (1-10) | 6/10 | 5/10 |
Who should pick NYC?
Stay in New York if your industry is concentrated there, finance, media, fashion, and the pay reflects it. A rent-stabilized apartment also shifts the math back toward staying.
Who should pick Chicago?
Pick Chicago if you want a true big city without New York's price tag. You keep a real transit system, major employers, and big-league culture, while spending far less on the cost of living.
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 NYC vs Chicago 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.