Median rent is 21% lower in Jackson ($1,094/mo vs $1,380/mo). Buying is cheaper in Jackson, where the median home runs $195,000 versus $315,200. Households earn more in Chicago ($75,134 vs $51,552 a year). Taken together, Jackson is the more affordable choice with a cost index of 98.5 against 105.7 — about 7% lower overall prices. After adjusting income for local prices, a typical paycheck stretches further in Chicago, IL.
Quick verdict
Jackson is 7% cheaper overall
Cost index: 98.5 in Jackson vs 105.7 in Chicago (US average = 100)
City A
Chicago, IL
City B
Jackson, TN
How much would you need to earn in Jackson, TN to maintain your standard of living from Chicago, IL?
Equivalent salary in Jackson, TN
$69,882
You could earn $5,118 less (7% lower) and break even.
Based on BEA Regional Price Parity (cost index) for each city's metro area. A rough estimate of overall purchasing power, not tax or take-home pay.
Metric
Chicago
Illinois
Jackson
Tennessee
👥Population
💰Median Household Income
Annual
🏠Median Gross Rent
Per month
🏡Median Home Value
📊Cost of Living Index
US avg = 100
🔑1BR Fair Market Rent
HUD FMR
🔑2BR Fair Market Rent
HUD FMR
🔑3BR Fair Market Rent
HUD FMR
🌬️Air Quality Index
Lower = cleaner
🏛️Top State Income Tax
Top marginal rate
🧾State Sales Tax
Statewide base rate
🎂Median Age
Years
✓ = better value · Sources: US Census ACS, BEA RPP, HUD FMR, EPA AirNow, Tax Foundation
Renters will find significantly cheaper housing in Jackson — median rent of $1,094/mo versus $1,380/mo in Chicago, a 21% difference. Home buyers face a steeper market in Chicago: the median home is $315,200 versus $195,000 in Jackson — 38% more expensive.
1BR Fair Market Rent
2BR Fair Market Rent
BLS OEWS 2023 — metro-level data
Tennessee has no state income tax, while Illinois tops out at 4.95% — giving Jackson a clear advantage for high earners. Sales tax is 6.25% in Illinois and 7.00% in Tennessee; Chicago has the lower rate (local add-ons may apply in both).
Chicago
Income tax: 4.95%
Sales tax: 6.25%
Jackson
Income tax: None
Sales tax: 7.00%
Air quality data is available for Chicago (avg AQI 21.0) but not yet for Jackson.
Pick Jackson if you prioritize lower overall cost of living (index 98.5 vs 105.7).
Pick Chicago if you prioritize higher median household income ($75,134/yr).
Pick Jackson if you prioritize cheaper rent ($1,094/mo median).
Pick Jackson if you prioritize no state income tax.
Is Chicago cheaper than Jackson?
Jackson is cheaper overall, with a cost of living index of 98.5 versus 105.7 (US average = 100). That means prices run about 7% lower in Jackson.
How much is rent in Chicago vs Jackson?
Median rent is $1,380/mo in Chicago, IL and $1,094/mo in Jackson, TN. Jackson, TN has the lower rent by about 21%.
Which has higher salaries — Chicago or Jackson?
Median household income is $75,134 in Chicago, IL and $51,552 in Jackson, TN. Chicago, IL has the higher median income. Note that BLS occupational wages in the table above show wages for specific jobs.
Which city has better air quality?
Air quality data is not yet available for one or both cities.
Which has lower taxes — Chicago or Jackson?
Tennessee has no state income tax. Illinois has a top rate of 4.95%.
What salary do I need in Jackson to match my Chicago income?
To maintain the same purchasing power, a salary of $100,000 in Chicago, IL is equivalent to roughly $93,175 in Jackson, TN (using the BEA Regional Price Parity ratio). Use the salary calculator above for any income amount.
Data last updated: December 1, 2024 · Sources: US Census ACS, BEA RPP, BLS OEWS, HUD FMR, EPA AirNow, Tax Foundation · Methodology