Is $100,000 a Good Salary in Chicago?

The question of whether a $100,000 salary is considered “good” in a major metropolitan area like Chicago is complex, as its adequacy depends significantly on individual financial goals and lifestyle choices. A salary’s true value is not merely its gross amount but rather its purchasing power after accounting for mandatory deductions and the specific costs of living in a particular city. This article provides a data-driven overview of what a $100,000 salary means in Chicago, analyzing the transformation from gross income to take-home pay and major expenditure categories. By examining these factors, individuals can gain a clearer understanding of the financial reality of earning this income in the Windy City.

Understanding Net Income

A gross salary of $100,000 is subject to several mandatory deductions before it becomes take-home pay. Federal income tax is a primary reduction, operating under a progressive system where different portions of income are taxed at varying rates. For a single filer in 2025, income is taxed at 10% for the first $11,925, 12% for income between $11,926 and $48,475, and 22% for income between $48,476 and $103,350.

Beyond federal taxes, FICA taxes contribute to Social Security and Medicare. For 2025, employees pay 6.2% for Social Security on earnings up to $176,100 and 1.45% for Medicare on all earnings. Illinois levies a flat income tax rate of 4.95% on all taxable income, simplifying state tax calculations compared to progressive state systems. These combined statutory deductions significantly reduce the initial $100,000.

Pre-tax deductions further reduce net income. Health insurance premiums, often deducted directly from paychecks, average around $114 per month if provided through an employer. Contributions to a 401(k) retirement plan are also typically pre-tax, with many suggesting contributions of 10% to 15% of gross salary, or at least enough to receive any employer match. Assuming a 10% 401(k) contribution and an employer-sponsored health plan premium, a $100,000 gross salary could see monthly deductions of approximately $1,100 for federal income tax, $412.50 for Illinois state tax, $637.50 for FICA, $114 for health insurance, and $833 for 401(k). This would result in an estimated monthly net income of roughly $5,803.

Major Living Expenses in Chicago

Net income must cover the costs of living in Chicago. Housing represents a substantial portion of expenses, with average rental costs varying by apartment size and neighborhood. As of August 2025, a studio apartment in Chicago averages around $1,592 per month, while a one-bedroom apartment typically costs $1,958 per month. For a two-bedroom unit, the average rent is approximately $2,487 per month. These figures can fluctuate significantly by neighborhood, with central areas being more expensive.

Utility costs are an additional expense. A basic utility bill for an apartment averages around $181 to $250 per month. Electricity alone averages about $202 monthly, while gas can range from $100 to $300 seasonally. Internet service adds an estimated $60 to $120 per month.

Transportation costs in Chicago can be managed through public transit or car ownership. A monthly CTA pass provides a cost-effective alternative to car ownership. For those who opt for a car, average full coverage car insurance in Chicago is approximately $3,424 per year, or about $285 per month. Additional car-related expenses include gas and parking, which can be a significant monthly cost.

Food expenses form a considerable part of the budget. Monthly grocery costs for an individual are about 4% above the national average, placing them in the range of $200 to $400 per month. Dining out is a common activity, with a mid-range meal for two costing around $100, while a casual dining experience for one might be $20 to $35.

Healthcare expenses also impact the budget. The average yearly out-of-pocket healthcare cost for employees is over $1,100, covering deductibles, co-pays, and other charges. This equates to approximately $92 per month in unanticipated medical expenses. Other essential categories include personal care, clothing, and miscellaneous recurring expenses.

Discretionary Spending and Financial Prospects

The remaining portion of a $100,000 salary determines the capacity for discretionary spending and financial growth. With estimated net monthly income around $5,800 and significant portions allocated to housing, utilities, transportation, and food, the amount available for non-essential items and savings varies. For instance, after covering average housing ($1,958 for a 1-bedroom), utilities ($200), and groceries ($300), roughly $3,342 remains before considering transportation, healthcare, and other necessities.

This remaining income allows for engagement in Chicago’s diverse entertainment options, such as cultural events, sports games, or exploring dining and nightlife. The extent of participation in these activities depends directly on the individual’s budgetary discipline and lifestyle choices. Those prioritizing frequent dining out, concert tickets, or regular travel will find their discretionary funds diminish more quickly.

Building savings and managing debt is a crucial aspect of financial well-being. Allocating funds to an emergency fund, typically three to six months of living expenses, provides a financial safety net. Contributions to retirement accounts can further enhance long-term financial security. Actively repaying student loans, credit card balances, or other debts is a significant step toward improving overall financial health.

Ultimately, a $100,000 salary in Chicago offers a comfortable living for many individuals, particularly if they are mindful of their spending and prioritize financial planning. The ability to save for future goals, such as a down payment on a home or early retirement, is largely influenced by personal choices regarding housing location, transportation methods, and entertainment habits. While the gross income provides a strong foundation, its “goodness” is inherently subjective, shaped by individual financial discipline and the pursuit of specific lifestyle aspirations within the city’s economic landscape.