This article is part of our Moving Guides.
Last updated October 23, 2026
Chicago vs New York comes down to cost against scale. Chicago is far cheaper: a one-bedroom rents for about half of what it costs in New York, and you skip New York City’s income tax. New York pays more on average, has a much larger job market, and its subway reaches more of the city around the clock. Pick Chicago if you want big-city life without a car at a price a normal salary can cover. Pick New York if your field is centered there, or the pay offer is large enough to cover rent that can run $2,000 a month higher. In both cities, most people who live and work in the core don’t need a car. The table below puts the numbers side by side.
How do Chicago and New York compare side by side?
Our Chicago guide and New York guide use different rent sources: Rentometer for Chicago and Apartments.com for New York. To compare like with like, this table leads with Zumper’s figures for both cities, pulled on the same day, and also shows the numbers from our city guides.
| Measure | Chicago | New York City |
|---|---|---|
| 1-bedroom rent, same source | $2,300, up 15% from a year ago (Zumper, October 22, 2026) | $4,700, up 9% from a year ago (Zumper, October 22, 2026) |
| 1-bedroom rent in our city guide | $2,216 average (Rentometer, October 2026) | $4,188 average (Apartments.com via QNS, second quarter 2026) |
| City population | 2,731,585 (Census Bureau, July 2025) | 8,584,629 (Census Bureau, July 2025) |
| Metro population | About 9.43 million (Census Bureau via FRED, July 2025) | About 20.11 million (Census Bureau via FRED, July 2025) |
| Sales tax | 10.5% since August 1, 2026 (Illinois Policy Institute, July 2026) | 8.875% (New York State Department of Taxation and Finance, March 2025) |
| State income tax | 4.95% flat, $2,925 personal exemption (Tax Foundation, 2026) | 3.9% to 10.9% by bracket, $8,000 standard deduction (Tax Foundation, 2026) |
| City income tax | None | 3.078% to 3.876% for city residents (2025 rates, NerdWallet, February 2026) |
| Living wage, one adult, no children | $25.44 an hour, $52,909 a year, Cook County (MIT, February 2026) | $38.21 an hour, $79,469 a year, Manhattan; $32.48, $67,558, Brooklyn (MIT, February 2026) |
| Minimum wage | $17.05 for employers with four or more workers, since July 1, 2026 (ABC7 Chicago) | $17.00 (New York State Department of Labor, October 2026) |
| Transit | CTA: $2.50 ‘L’, $2.25 bus, $75 for 30 days. 8 ‘L’ lines, 146 stations (CTA, 2026) | MTA: $3 subway or bus, capped at $35 in any rolling 7 days with OMNY (MTA, January 2026). 472 subway stations (MTA, 2024) |
| Need a car? | No, for most people who live and work in the city | No; only about half of households own one |
| Average commute | 33.1 minutes (Census ACS, 2020 to 2024) | 40.3 minutes (Census ACS, 2020 to 2024) |
| July average high / low | 84.5°F / 66.4°F (NWS 1991–2020 normals, O’Hare) | 84.9°F / 70.1°F (NOAA 1991–2020 normals, Central Park) |
| January average high / low | 31.6°F / 18.8°F | 39.5°F / 27.9°F |
| Snow in a typical year | 38.4 inches (NOAA) | 29.8 inches (NOAA) |
| Metro unemployment | 5.2% (BLS, August 2026, preliminary) | 4.7% (BLS, August 2026, preliminary) |
| Average hourly wage, all jobs | $35.28 (BLS, May 2025 data) | $41.50 (BLS, May 2025 data) |
| Major industries | Trade and logistics, business services, health care and education, finance, manufacturing | Health care and education, business services, government, finance, media and tech |
| Weather risks | Extreme cold, snow, winter parking bans | Flash flooding and coastal storms, summer heat in older apartments |
Sources for each row are listed at the bottom of the page. The two cities measure very differently: New York’s five boroughs hold more than three times as many people as Chicago, and its metro is more than twice as big.
Is Chicago or New York cheaper to live in?
Chicago, by a wide margin. On the same day in October 2026, Zumper listed a one-bedroom at $2,300 in Chicago and $4,700 in New York (Zumper Chicago; Zumper New York). That’s a gap of $2,400 a month. Rents rose faster in Chicago over the year, up 15% against 9%, but the dollar gap is still huge. Our guides’ figures tell the same story: about $2,216 in Chicago (Rentometer, October 2026) and $4,188 in New York (QNS, citing Apartments.com, second quarter 2026).
New York rent depends heavily on the borough. Apartments.com’s second-quarter averages were $3,064 in Brooklyn, $3,592 in Queens and $1,646 in the Bronx (QNS, July 2026). MIT’s basic budget for one adult is $52,909 a year in Cook County, $67,558 in Brooklyn and $79,469 in Manhattan (MIT, Cook County; MIT, Kings County; MIT, New York County, February 2026).
Sales tax is the one place Chicago costs more. The combined rate rose to 10.5% on August 1, 2026 (Illinois Policy Institute, July 2026). New York City’s rate is 8.875% (New York State Department of Taxation and Finance, Publication 718, March 2025). For full budgets, see the cost of living in Chicago and the cost of living in New York City.
How is renting different in each city?
In New York, the FARE Act, in effect since June 2025, says whoever hires a broker pays the broker, so a landlord’s agent can’t pass the fee to you (NYC Department of Consumer and Worker Protection, June 2025). Chicago landlords often charge a non-refundable move-in fee instead of a security deposit. Read move-in fee vs security deposit in Chicago, how apartment hunting in Chicago works and how renting works in New York City. If you’re leasing from out of town, see how to find an apartment in another city.
How much more tax do you pay in New York than in Chicago?
Illinois has a flat 4.95% income tax, with a $2,925 personal exemption for a single filer in 2026 (Illinois Department of Revenue; Tax Foundation, February 2026). Chicago has no city income tax.
New York State’s rates rise with income. For 2026, a single filer pays 3.9% on the first $8,500, then 4.4%, 5.15% and 5.4% up to $80,650, with higher rates above that, and gets an $8,000 standard deduction (Tax Foundation, February 2026). New York City residents also pay city income tax: 3.078% on the first $12,000 of taxable income, rising to 3.876% above $50,000, in the 2025 schedule (NerdWallet, February 2026). We use the same rates for 2026. People who work in the city but live outside the five boroughs don’t pay the city tax.
What does that mean on a $75,000 salary?
Here is a simple example for a single person earning $75,000 in wages, living in the city, with no other income, taking Illinois’s personal exemption or New York’s standard deduction. Federal income tax, Social Security and Medicare are the same in both places, so they’re left out.
| Step | Chicago | New York City |
|---|---|---|
| Salary | $75,000 | $75,000 |
| Exemption or standard deduction | $2,925 | $8,000 |
| State taxable income | $72,075 | $67,000 |
| State income tax | About $3,568 (4.95%) | About $3,453 (by bracket) |
| City income tax | $0 | About $2,472 (by bracket) |
| Total state and city | About $3,568 | About $5,925 |
So the New Yorker in this example pays about $2,360 more a year, or roughly $200 a month. The state taxes are close; the difference is New York City’s own income tax. This is our math from published rates, before small credits, and not tax advice. Next to the rent gap, the tax gap is small.
Which city has the better job market?
New York’s is larger and pays more. Chicago’s had higher unemployment in summer 2026.
- Unemployment. 5.2% in the Chicago metro and 4.7% in the New York metro in August 2026, both preliminary and not seasonally adjusted (BLS Chicago; BLS New York).
- Pay. The average hourly wage across all jobs was $35.28 in the Chicago metro and $41.50 in the New York metro, against $33.54 nationally (BLS, May 2025 data, released June and July 2026). That’s about $73,400 and $86,300 a year at 2,080 hours.
- Size. The New York metro had about 10.0 million nonfarm jobs in September 2026; the Chicago metro had about 4.8 million (BLS, preliminary).
Chicago has a mixed economy. In the core Chicago-Naperville-Schaumburg area, trade, transportation and utilities had about 741,200 jobs, professional and business services 696,300, and education and health services 670,700 in August 2026 (BLS). Manufacturing still had 287,000 jobs. The largest employers include the federal government, Chicago Public Schools, the City of Chicago, Amazon, Advocate Health Care and Northwestern Medicine (Hoodline, mostly citing Crain’s Chicago Business, February 2026). More in our Chicago job market guide.
New York is led by health care and education, with about 1.62 million jobs in the New York-Jersey City-White Plains area in September 2026. Professional and business services had about 1.02 million, government about 824,000 and financial activities about 630,000 (BLS, preliminary). Leisure and hospitality jobs fell 2.6% over the year. More in our New York City job market guide.
Do you need a car in Chicago or New York?
In both cities, most people who live and work in the city don’t. New York’s network is bigger; Chicago’s is cheaper.
Chicago has 8 ‘L’ lines with 146 stations over 224 miles of track (CTA, March 2026). The Red and Blue lines run 24 hours. A train ride is $2.50, a bus ride $2.25, and passes cost $5 a day, $20 for 7 days or $75 for 30 days (CTA fares, October 2026). Metra commuter trains serve the suburbs. If you keep a car, you need a city sticker within 30 days of moving in; it’s $105.18 for a standard passenger car in 2026 (Chicago City Clerk). See how the L works and do you need a car in Chicago.
New York has 472 subway stations (MTA, subway and bus facts, updated August 2024), and the subway runs around the clock. A subway or local bus ride costs $3 since January 2026, and OMNY stops charging after $35 in any rolling 7 days when you tap the same card or phone (CBS New York; MTA). The MTA calls this a 7-day rolling fare cap. Only about half of city households own a car (Planetizen, November 2024). Driving into Manhattan below 60th Street costs a $9 congestion toll at peak times (News 12). See how the NYC subway works and do you need a car in New York City.
Commutes are long in both. The average one-way trip to work is 33.1 minutes for Chicago residents and 40.3 minutes for New York City residents (Census QuickFacts, ACS 2020 to 2024).
Is the weather worse in Chicago or New York?
Summers are about the same, with July highs near 85°F in both. Chicago’s winters are colder and snowier. January averages 31.6°F for the high and 18.8°F for the low at O’Hare (NWS Chicago, 1991–2020 normals), against 39.5°F and 27.9°F in Central Park (NOAA, 1991–2020 normals). Chicago gets 38.4 inches of snow in a typical year and New York 29.8 (NOAA). New York is wetter: 49.52 inches of rain and melted snow a year against 37.86.
- Chicago: deep cold is the main risk. During the January 2019 polar vortex, O’Hare fell to 23 below zero (CBS Chicago). From December 1 to April 1, overnight parking is banned on some main streets, and a towed car costs at least $150 plus a $60 ticket and storage fees, per our Chicago car guide.
- New York: heavy rain can flood streets and basements fast. When the remnants of Ida hit on September 1, 2021, Central Park got 3.15 inches of rain in one hour, and at least 13 people died in the city, several in basement apartments (ABC7 New York, September 2021). Check flood risk before renting a basement or ground-floor unit. Many older apartments have no central air, which matters in summer heat waves.
More detail: how bad Chicago winters are and New York City weather.
What are the neighborhoods like in each city?
Chicago newcomers often start on the North Side, in Lakeview, Lincoln Park or Logan Square, or in the West Loop if they work downtown. Uptown and Rogers Park offer lakefront living at lower rents, and Hyde Park is home to the University of Chicago. In New York, many newcomers start in Queens or Brooklyn, in Astoria, Long Island City, Williamsburg, Bushwick or Bedford-Stuyvesant. Washington Heights and Inwood are among the more affordable parts of Manhattan. Jersey City and Hoboken are a PATH ride away, in a different state with different taxes.
See best Chicago neighborhoods for newcomers and best New York neighborhoods for newcomers for rents and trade-offs.
Should you move to Chicago or New York?
Choose Chicago if you want a big, walkable city with good transit and a lakefront, and you want rent to take a smaller bite of your paycheck. On a typical salary, the lower rent alone can save you more than $20,000 a year compared with New York. It’s a strong fit for people in logistics, health care, finance and manufacturing, and for anyone who can handle cold winters.
Choose New York if your career is centered there, such as finance or media, or if you have an offer that pays well above the city’s average. You get a metro of about 20 million people, higher average pay and a 24-hour subway, and you pay for it in rent and city income tax. Many newcomers share an apartment or live in Queens, Brooklyn or the Bronx to make it work.
Next steps: moving to Chicago and moving to New York.
Want all nine cities side by side? Our Big City Moving Index compares rent, the income you need, minimum wage, taxes and transit across every city we cover.
Frequently asked questions about Chicago vs New York
Is Chicago cheaper than New York?
Yes, by a lot. A one-bedroom was $2,300 in Chicago and $4,700 in New York on Zumper in October 2026. Chicago residents also don’t pay a city income tax. Chicago’s 10.5% sales tax is higher than New York City’s 8.875%, but that doesn’t come close to offsetting the rent gap.
How much salary do you need to live in Chicago vs New York?
MIT’s Living Wage Calculator puts a basic budget for one adult at $52,909 a year before taxes in Cook County, $67,558 in Brooklyn and $79,469 in Manhattan (February 2026). That covers essentials only, with no savings or extras.
Do you pay city income tax in Chicago or New York?
Only in New York. City residents pay 3.078% to 3.876% on top of New York State tax. Chicago has no city income tax; you pay only Illinois’s flat 4.95%.
Which has better public transit, Chicago or New York?
New York’s is bigger: 472 subway stations, and the system runs around the clock. Chicago’s ‘L’ has 146 stations, and only the Red and Blue lines run 24 hours. Chicago is cheaper, at $2.50 a ride and $75 for 30 days, against New York’s $3 ride and $35 weekly cap.
Sources
- Rent, same source: Zumper, Chicago, IL Rent Prices and Zumper, New York, NY Rent Prices (October 22, 2026)
- Chicago rent in our guide: Rentometer, Average rent in Chicago (October 2026)
- New York rent in our guide: QNS, NYC most unaffordable city for renters, Q2 2026 (July 2026)
- City populations and commutes: U.S. Census Bureau, QuickFacts: Chicago city and New York city (July 2025 estimates)
- Metro populations: FRED, Resident Population in Chicago-Naperville-Elgin (MSA) and FRED, Resident Population in New York-Newark-Jersey City (MSA) (updated August 2026)
- Chicago sales tax: Illinois Policy Institute, RTA sales tax hike pushes Chicago to 10.5% (July 2026)
- New York City sales tax: New York State Department of Taxation and Finance, Publication 718 (March 2025)
- Illinois income tax: Illinois Department of Revenue, Income Tax Rates (accessed October 2026)
- State brackets, deductions and exemptions: Tax Foundation, State Individual Income Tax Rates and Brackets, 2026 (February 2026)
- New York City income tax: NerdWallet, New York Income Tax: Rates, Who Pays (February 2026)
- Living wage: MIT Living Wage Calculator, Cook County, Kings County and New York County (February 2026)
- Chicago minimum wage: ABC7 Chicago, Chicago and Cook County minimum wage increases take effect (July 1, 2026)
- New York City minimum wage: New York State Department of Labor, Minimum Wage (accessed October 2026)
- FARE Act: NYC Department of Consumer and Worker Protection, The FARE Act Is Now in Effect (June 2025)
- Chicago jobs: BLS, Chicago metro Economy at a Glance, BLS, Chicago-Naperville-Schaumburg Economy at a Glance (August and September 2026 data) and BLS, Occupational Employment and Wages in Chicago, May 2025 (July 2026)
- New York jobs: BLS, New York metro Economy at a Glance, BLS, New York-Jersey City-White Plains Economy at a Glance (August and September 2026 data) and BLS, Occupational Employment and Wages in New York, May 2025 (June 2026)
- Chicago employers: Hoodline, citing Crain’s Chicago Business 2026 ranking (February 2026)
- CTA: CTA, Facts at a Glance (March 2026) and CTA, Fares (October 2026)
- Chicago city sticker: Office of the Chicago City Clerk, City Sticker (accessed October 2026)
- Subway stations: MTA, Facts about New York City subways and buses (updated August 2024)
- Subway fare and cap: CBS New York, MTA fare hike 2026 and MTA, Fare and toll changes (accessed October 2026)
- Car ownership: Planetizen, NYC car ownership (November 2024)
- Congestion toll: News 12, Congestion pricing officially takes effect in Manhattan (January 2025)
- Chicago weather: NWS Chicago, O’Hare 1991–2020 normals (accessed October 2026)
- New York weather: NOAA NCEI, 1991–2020 monthly normals, Central Park and O’Hare (accessed October 2026)
- Snow and precipitation: NOAA NCEI, 1991–2020 annual normals, Central Park and O’Hare (accessed October 2026)
- Polar vortex: CBS Chicago, Chicago deep freeze temperature records (January 2019)
- Ida flooding: ABC7 New York, 13 killed in historic NYC flooding (September 2021)
Author: Go Big City Team
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