- Denver is only 2% more expensive than Chicago — nearly identical
- Colorado's property tax (0.51%) vs Illinois (2.07%) saves homeowners $5,400+/year
- Housing is 6% more in Denver, but transportation is 13% cheaper
- Decision comes down to lifestyle: mountains vs lake, not money
Chicago and Denver are both beloved midwestern-ish cities (yes, Denver counts) with strong job markets, great food scenes, and actual seasons. But if you're choosing between them — or considering a move — the cost difference might surprise you. It's smaller than you think.
Overall: Denver Is Slightly More Expensive
Chicago's cost-of-living index is 108.1 while Denver's is 110.0. That's only about 2% more expensive in Denver. On a $75,000 salary, you'd need roughly $76,050 in Denver to match your Chicago lifestyle — barely a difference of $90/month.
Housing: Denver Edges Higher
Housing is where Denver pulls ahead in cost. Chicago's housing index is 118.0 vs Denver's 125.0 — about 6% more in Denver.
- Studio: $1,200/mo in Chicago vs $1,350/mo in Denver (+$150)
- 1-bedroom: $1,450/mo vs $1,550/mo (+$100)
- 2-bedroom: $1,750/mo vs $1,950/mo (+$200)
- 3-bedroom: $2,400/mo vs $2,700/mo (+$300)
The difference is real but manageable — roughly $150–$300/mo more for the same size apartment in Denver. Check our mortgage calculator to compare home buying costs.
Transportation: Chicago Is More Expensive
Here's where Chicago loses ground. Chicago's transportation index is 123.0 vs Denver's 107.0 — that's 13% cheaper to get around in Denver. Chicago's higher costs come from expensive car insurance, tollways, and higher gas prices. Denver's RTD light rail isn't as extensive as the CTA, but lower insurance and gas costs help.
Groceries, Utilities, Healthcare
These categories are remarkably close:
- Groceries: Chicago 103.0, Denver 103.0 — dead even
- Utilities: Chicago 95.0, Denver 95.0 — identical
- Healthcare: Chicago 96.0, Denver 102.0 — Denver is 6% more
The healthcare difference is worth noting. Denver's healthcare costs are slightly above average, driven by a concentration of specialized providers and higher insurance premiums in the mountain west region.
The Tax Factor
Illinois has a flat 4.95% state income tax. Colorado uses a flat 4.4% rate. That small difference adds up: on a $75,000 salary, you'd save about $400/year in state income taxes in Colorado. Not life-changing, but not nothing.
Colorado's property tax rate (0.51%) is also lower than Illinois's (2.07%) — which is one of the highest in the nation. On a $350,000 home, that's a savings of over $5,400/year. Calculate your take-home pay in both states at TaxTakeHome.com.
Where Denver Wins and Loses
Denver wins on:
- Lower property taxes (significantly)
- Cheaper transportation
- 300+ days of sunshine per year
- Proximity to mountains and outdoor recreation
Chicago wins on:
- Slightly cheaper housing (for a major city)
- Better public transit (CTA vs RTD)
- Cheaper healthcare
- More diverse food scene and cultural institutions
The Verdict
If you're purely comparing cost of living, Chicago and Denver are remarkably similar — within 2% of each other. The deciding factors will likely be lifestyle (mountains vs lake), taxes (Colorado's property tax savings are significant for homeowners), and career opportunities in your field.
Run your personalized comparison on MoveNumbers with your actual salary, or explore other cities to widen your search.
Data sourced from BLS Consumer Expenditure Survey, HUD Fair Market Rents 2024–2025, and Census Bureau ACS.