How Expensive Is It to Live in Chicago?

Chicago is a vibrant metropolis renowned for its architectural marvels, diverse cultural scene, and dynamic economy. Living in Chicago is generally more expensive than the national average. This cost of living reflects the city’s status as a major United States hub, attracting a broad spectrum of residents.

Housing Costs

Housing is the most significant expense for Chicago residents, covering both rental and ownership markets. As of August 2025, the average rent for an apartment is approximately $1,961 per month. This figure varies considerably by size and neighborhood. A studio apartment costs around $1,591 monthly, a one-bedroom averages $1,961, a two-bedroom about $2,488, and a three-bedroom can exceed $3,011 per month.

Rental prices fluctuate widely across the city’s diverse areas. Upscale neighborhoods such as River North, the Loop, and West Loop command higher rents, with studio apartments ranging from $1,800 to $2,500, and one-bedrooms from $2,000 to $3,200. In contrast, more residential areas within city limits, such as Albany Park or Bridgeport, offer more affordable options, with studios found for $1,050 to $1,400 per month. The age of the building, its amenities, and proximity to public transit lines also significantly influence rental rates.

For homeownership, the median sale price for a home in Chicago was around $385,000 in July 2025, a 5.5% increase from the previous year. Economic growth, employment trends, and mortgage rates influence home prices. Property taxes in Illinois are notably high. In Cook County, the effective tax rate is approximately 2% of a home’s value. A home valued at $300,000 could incur around $6,000 annually in property taxes.

Transportation Costs

Navigating Chicago involves various transportation expenses, whether relying on public transit or a personal vehicle. The Chicago Transit Authority (CTA) provides buses and ‘L’ trains. A single ‘L’ train ride costs $2.50, and a bus fare is $2.25. Transfers between CTA services are free for up to two additional rides within two hours. A 30-day unlimited ride CTA/Pace pass is available for $75.

For car owners, costs extend beyond gas. Full coverage car insurance in Chicago ranges from $2,488 to $3,644 per year, often higher than the state average due to urban factors. Gasoline prices are higher than the national average, around $3.30 to $3.55 per gallon. Monthly parking, especially downtown, averages $190 to $220. Annual car maintenance costs around $900, and rideshare services and taxis average $15 to $25 per trip.

Everyday Living Expenses

Beyond housing and transportation, daily necessities contribute to the overall cost of living. Groceries in Chicago are about 4% higher than the national average. A single individual’s monthly grocery bill ranges from $200 to $250. Milk costs about $4.00 to $4.88 per gallon, and a dozen eggs around $3.50 to $4.85.

Utility costs vary seasonally. Monthly electricity bills range from $100 to $300, averaging $202. Gas, primarily for heating, might add $100, potentially reaching $200-$300 in winter. Water bills average $40 to $60 per month, and internet services cost between $60 and $100 monthly. Cell phone plans, subject to a high tax rate in Illinois, range from $55 to $90 per line.

Healthcare expenses also factor into daily living. The average cost for health insurance in Illinois is approximately $684 per month for an unsubsidized Silver plan, though many residents qualify for subsidies. A 30-year-old in Cook County might find a Bronze plan for around $348 per month. Beyond premiums, average annual out-of-pocket healthcare expenses are over $1,100. Some health plans specify individual out-of-pocket limits of $1,500 and family limits of $3,000 for in-network services.

Taxation and Additional Outlays

Understanding the various taxes and discretionary spending is important for a complete picture of Chicago’s cost of living. Illinois imposes a flat income tax rate of 4.95% on all residents, applying to all taxable income.

Sales tax rates in Chicago are among the highest in the nation. The combined sales tax rate is 10.25%, which includes the state sales tax of 6.25%, a Cook County sales tax rate, and a city sales tax. This rate applies to most goods and services. Dining out incurs an even higher combined sales tax rate of 11.75% in certain areas, particularly downtown, due to additional restaurant-specific taxes.

Beyond essential expenses and taxes, leisure activities contribute to the overall financial outlay. Dining out at a mid-range restaurant for two costs around $100, while fine dining can exceed $200. An inexpensive restaurant meal for one might be $22, and coffee purchases average $4 to $5.50. Entertainment costs, such as a movie ticket, are around $17.53, though total monthly spending on entertainment and shopping can range from $50 to $100. These discretionary expenses, combined with high tax rates, significantly influence the financial commitment for a Chicago lifestyle.