Chicago vs Dallas: cost of living compared
Dallas is 11% cheaper than Chicago overall. Dallas (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
Overall, the cost of living in Chicago is noticeably higher than in Dallas. This difference is driven by several categories, with transportation and healthcare costs contributing significantly to Chicago's higher index. While some expenses are roughly similar, the cumulative effect makes Chicago a more expensive place to live on average, impacting household budgets across various spending areas.
Housing
When considering housing, median home prices are somewhat higher in Dallas, while median apartment rents are more expensive in Chicago. The housing cost index for both metros is roughly similar to the national average. Property taxes in Texas are generally higher than in Illinois, which can impact the total cost of homeownership in Dallas, despite the absence of a state income tax.
Taxes and everyday costs
A key difference for everyday expenses is the absence of a state income tax in Texas, which can lead to more disposable income for Dallas residents. Beyond taxes, Chicago's transportation costs are considerably higher, reflecting its more developed public transit system and denser urban environment. Food, healthcare, and utilities are also generally more expensive in Chicago, contributing to higher daily spending.
Lifestyle trade-offs
Lifestyle differences are notable. Chicago offers a distinct four-season climate with cold, snowy winters, while Dallas experiences hot summers and milder winters. Chicago's dense urban core and extensive public transportation allow for a car-optional lifestyle in many areas. Dallas, in contrast, is more car-dependent, with a sprawling layout. Both cities offer diverse cultural attractions and professional opportunities.
Bottom line
Moving between these metros means a significant shift in household budgeting. Dallas generally offers a more affordable overall cost of living, primarily due to lower everyday expenses and the absence of a state income tax. However, home purchase prices can be higher in Dallas, and property taxes are a consideration. Chicago presents higher costs across most categories but offers a different urban experience and climate.
| Measure | Chicago, IL | Dallas, TX |
|---|---|---|
| Overall cost of living (US avg = 100) | 118 | 105 |
| Housing index | 97 | 99 |
| Transportation index | 121 | 104 |
| Food index | 105 | 98 |
| Healthcare index | 108 | 102 |
| Utilities index | 102 | 105 |
| Misc index | 108 | 98 |
| Median home price | $318,000 | $358,000 |
| Median 1-bedroom rent | $1,650/mo | $1,450/mo |
| Average commute | 34 min | 29 min |
Compare any two metros with the free cost of living tool, or see the true monthly cost of a specific Dallas home with the True Cost Calculator.