Chicago vs Memphis: cost of living compared
Memphis is 34% cheaper than Chicago overall. Memphis (TN) 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
Moving between Chicago and Memphis presents a substantial difference in overall cost of living. Memphis is noticeably more affordable across nearly all spending categories, making it a much more budget-friendly option. The most significant factor driving this disparity is housing, which is considerably more expensive in Chicago, but other everyday expenses also contribute to the gap.
Housing
Housing costs show a dramatic difference between the two cities. Both median home prices and typical one-bedroom rents are substantially higher in Chicago compared to Memphis. Chicago's housing stock often includes multi-unit buildings and older, established homes, while Memphis offers a range of options, frequently with more land. Property taxes and insurance costs can also vary, impacting total ownership expenses.
Taxes and everyday costs
Daily expenses are generally lower in Memphis. Transportation costs are noticeably less, and average commute times are shorter. Food, healthcare, and utilities are also more affordable in Memphis. A key difference for household budgets is state income tax; Illinois has a state income tax, while Tennessee does not, which can significantly impact take-home pay.
Lifestyle trade-offs
Beyond costs, lifestyle differences are notable. Chicago experiences four distinct seasons, including cold winters and hot summers, and boasts extensive public transit options. Memphis has a warmer, humid climate with milder winters and hot summers, and is more car-dependent. Chicago is a dense, bustling metropolis, while Memphis offers a more relaxed pace and a distinct cultural heritage.
Bottom line
For those considering a move, the financial implications are clear: a household budget will stretch much further in Memphis than in Chicago. The lower housing costs are the primary driver, but savings extend across transportation, food, and other daily necessities. The absence of a state income tax in Tennessee further enhances Memphis's affordability, offering a significant financial advantage.
| Measure | Chicago, IL | Memphis, TN |
|---|---|---|
| Overall cost of living (US avg = 100) | 118 | 78 |
| Housing index | 97 | 54 |
| Transportation index | 121 | 88 |
| Food index | 105 | 85 |
| Healthcare index | 108 | 88 |
| Utilities index | 102 | 92 |
| Misc index | 108 | 78 |
| Median home price | $318,000 | $178,000 |
| Median 1-bedroom rent | $1,650/mo | $900/mo |
| Average commute | 34 min | 25 min |
Compare any two metros with the free cost of living tool, or see the true monthly cost of a specific Memphis home with the True Cost Calculator.