Is Phoenix, AZ cheaper than Chicago, IL?

Based on cost of living data, Phoenix, AZ is 4.5% cheaper than Chicago, IL. This translates to saving $340 per month.

What salary do I need in Phoenix, AZ to live like I do in Chicago, IL?

If you earn $150,000 in Chicago, IL, you'd need approximately $145,920.444 in Phoenix, AZ to maintain the same standard of living.

How does housing cost compare between Chicago, IL and Phoenix, AZ?

Housing in Phoenix, AZ is 9.1% cheaper than in Chicago, IL. For a two-bedroom apartment, rent is $1,750/month in Phoenix, AZ compared to $1,925/month in Chicago, IL.

How much can I save per month by moving from Chicago, IL to Phoenix, AZ?

Moving from Chicago, IL to Phoenix, AZ could save you approximately $340 per month, or $4080 per year, based on a $150,000 salary.

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Chicago, IL

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Phoenix, AZ

Cost of Living Comparison 2026

Current salary in Chicago, IL

Numbers update automatically as you type

You'd save $340/month moving to Phoenix, AZ

$150.0K in your current city equals $145.9K in Phoenix, AZ

Rent data from HUD ZIP-level estimates · COL index from Chicago-Naperville-Elgin, IL-IN-WI area

Overall Cost

↓ 4.5%

Less expensive

Monthly Impact

$340

Savings

Annual Impact

$4.1K

Per year

Based on monthly living costs (rent, groceries, utilities, transport, healthcare). Home purchase prices shown separately below.

Chicago, IL

Population:2746K

Cost Index:100

Median Home:$305K

Phoenix, AZ

Population:1608K

Cost Index:95

Median Home:$414K

Chicago, IL

The Prairie State

2.7M

Population

State Tax

Yes

Climate

Continental

Notable Facts

•Major transportation hub
•Architectural landmark city
•Great Lakes location

Major Industries

FinanceTechnologyManufacturingTransportation

Phoenix, AZ

The Grand Canyon State

1.6M

Population

State Tax

Yes

Climate

Hot desert

Notable Facts

•Fastest growing major city
•Desert metropolis
•Spring training capital

Major Industries

TechnologyHealthcareTourismManufacturing

Cost Breakdown by Category

Annual spending: Chicago, IL vs Phoenix, AZ

Category	Chicago, IL	Phoenix, AZ	Difference	Change
🏠Housing	$3,066/mo	$2,788/mo	↓ $278less	9.1%
🚗Transportation	$1,680/mo	$1,489/mo	↓ $191less	11.4%
📦Other	$1,758/mo	$1,677/mo	↓ $80.35less	4.6%
🛒Groceries	$1,029/mo	$963/mo	↓ $65.95less	6.4%
⚡All Utilities	$519/mo	$561/mo	↑ $42.07more	8.1%
🏥Healthcare	$595/mo	$589/mo	↓ $6.20less	1.0%

🏠Housing

↓ 9.1%

Chicago, IL

$3,066

Phoenix, AZ

$2,788

Difference

$278

less

🚗Transportation

↓ 11.4%

Chicago, IL

$1,680

Phoenix, AZ

$1,489

Difference

$191

less

📦Other

↓ 4.6%

Chicago, IL

$1,758

Phoenix, AZ

$1,677

Difference

$80.35

less

🛒Groceries

↓ 6.4%

Chicago, IL

$1,029

Phoenix, AZ

$963

Difference

$65.95

less

⚡All Utilities

↑ 8.1%

Chicago, IL

$519

Phoenix, AZ

$561

Difference

$42.07

🏥Healthcare

↓ 1.0%

Chicago, IL

$595

Phoenix, AZ

$589

Difference

$6.20

less

🏠Rent Comparison

Studio

From$1,600

To$1,390

↓ $210

1 Bed

From$1,710

To$1,510

↓ $200

2 Bed

From$1,925

To$1,750

↓ $175

3 Bed

From$2,480

To$2,330

↓ $150

Chicago, ILZIP-level data

1BR range: $1,140–$2,370/mo

Phoenix, AZZIP-level data

1BR range: $1,300–$2,380/mo

💡 Note: Rent prices are based on HUD Fair Market Rent data and represent median costs. Actual prices vary by neighborhood, amenities, and condition. Source: HUD Small Area Fair Market Rents FY2026.

$8,648

Monthly in Chicago, IL

$8,068

Monthly in Phoenix, AZ

$580

Difference

Home Values

Chicago

Phoenix

$305K

Median Value

$414K

↑ +1.8%

YoY Change

↓ -3.1%

↑ +10.2%

5-Year Change

↑ +30.2%

$116K - $611K

Price Range

$274K - $957K

Homes in Phoenix are 36% more expensive than Chicago

Calculate payment - Chicago Calculate payment - Phoenix

Source: Zillow Home Value Index (ZHVI), January 2026

Tax Comparison

Annual tax burden comparison at $150.0K salary

Tax Savings

↑ $2.2K

Per year

Monthly Difference

$183

More take-home

Effective Rate Diff

1.5%

Rate difference

Chicago, IL

Federal Income Tax

Effective: 18.9%

$25.5K

Illinois State Tax

Effective: 5.0%

$7.4K

FICA Taxes

Social Security + Medicare

$11.5K

Total Taxes

Effective: 29.6%

$44.4K

Take-Home Pay

$8,797/month

$105.6K

Phoenix, AZ

Federal Income Tax

Effective: 18.9%

$25.5K

Arizona State Tax

Effective: 3.5%

$5.2K

FICA Taxes

Social Security + Medicare

$11.5K

Total Taxes

Effective: 28.2%

$42.2K

Take-Home Pay

$8,979/month

$107.8K

Additional Tax Information

Chicago, IL Tax Rates

Sales Tax:8.8%

Property Tax:2.2%

Phoenix, AZ Tax Rates

Sales Tax:8.5%

Property Tax:0.6%

💡 Note: Tax calculations are estimates based on 2024/2025 tax brackets for single filers with standard deduction. Actual taxes may vary based on filing status, deductions, credits, and local variations.