Austin vs Chicago: cost of living compared
Chicago is about the same as Austin overall. Austin (TX) has no state income tax; IL tops out around 4.95%.
Indexes use a US average of 100: below 100 is cheaper than the national average. Housing and transportation are derived from median home prices, rents and commute times; figures come from BLS, Census ACS, Numbeo and the MIT Living Wage Calculator.
The big picture
While the overall cost of living appears roughly similar between Austin and Chicago, the underlying expenses driving that total differ significantly. Austin's higher housing costs are a major factor, while Chicago's transportation and miscellaneous expenses contribute more to its overall figure. Understanding these differences is key to evaluating which city aligns better with your financial priorities, as one area might offer savings while another presents a greater expense.
Housing
Housing costs present a noticeable gap, with Austin's median home prices significantly higher than Chicago's, and median one-bedroom rents also leaning more expensive in Austin. Chicago generally features a denser urban housing stock with many multi-family options, while Austin offers a mix of single-family homes and newer developments. Property taxes and insurance costs can also vary, impacting the true cost of homeownership in each metro.
Taxes and everyday costs
Daily spending will feel different due to several factors. Chicago has a state income tax, which Austin does not, impacting take-home pay. Transportation costs are noticeably higher in Chicago, though its extensive public transit system might reduce personal vehicle reliance. Food, healthcare, and miscellaneous goods and services are generally more expensive in Chicago, while utilities are somewhat higher in Austin, balancing out some of these daily expenses.
Lifestyle trade-offs
Beyond costs, lifestyle differences are substantial. Austin offers a warm, humid subtropical climate with hot summers, while Chicago experiences four distinct seasons, including cold, snowy winters. Chicago is known for its dense urban environment and robust public transportation, making it possible to live without a car. Austin, while growing, is more car-dependent, though it also has a vibrant outdoor culture. The pace in Chicago is often perceived as faster, reflecting its status as a major global city.
Bottom line
For those considering a move, the financial implications hinge heavily on housing. Austin demands a much larger investment for homeownership, while Chicago offers more affordable entry into the housing market. However, Chicago's state income tax and higher everyday expenses, particularly for transportation, can offset some of those housing savings. Your personal priorities regarding homeownership, reliance on public transit, and tolerance for different climates will strongly influence which city offers a more favorable financial landscape.
| Measure | Austin, TX | Chicago, IL |
|---|---|---|
| Overall cost of living (US avg = 100) | 118 | 118 |
| Housing index | 132 | 97 |
| Transportation index | 109 | 121 |
| Food index | 102 | 105 |
| Healthcare index | 102 | 108 |
| Utilities index | 112 | 102 |
| Misc index | 102 | 108 |
| Median home price | $498,000 | $318,000 |
| Median 1-bedroom rent | $1,750/mo | $1,650/mo |
| Average commute | 30 min | 34 min |
Compare any two metros with the free cost of living tool, or see the true monthly cost of a specific Chicago home with the True Cost Calculator.