Median rent is 27% lower in Chicago ($1,380/mo vs $1,902/mo). Buying is cheaper in Chicago, where the median home runs $315,200 versus $534,500. Households earn more in Jersey City ($94,813 vs $75,134 a year). Taken together, Chicago is the more affordable choice with a cost index of 105.7 against 113.0 — about 6% lower overall prices. After adjusting income for local prices, a typical paycheck stretches further in Jersey City, NJ.
Quick verdict
Chicago is 6% cheaper overall
Cost index: 105.7 in Chicago vs 113.0 in Jersey City (US average = 100)
City A
Chicago, IL
City B
Jersey City, NJ
How much would you need to earn in Jersey City, NJ to maintain your standard of living from Chicago, IL?
Equivalent salary in Jersey City, NJ
$80,166
You'd need $5,166 more (7% higher).
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
Jersey City
New Jersey
👥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 Chicago — median rent of $1,380/mo versus $1,902/mo in Jersey City, a 27% difference. Home buyers face a steeper market in Jersey City: the median home is $534,500 versus $315,200 in Chicago — 41% more expensive.
1BR Fair Market Rent
2BR Fair Market Rent
BLS OEWS 2023 — metro-level data
Illinois's top income tax rate is 4.95% versus 10.75% in New Jersey, so Chicago is more tax-friendly for high earners. Sales tax is 6.25% in Illinois and 6.63% in New Jersey; Chicago has the lower rate (local add-ons may apply in both).
Chicago
Income tax: 4.95%
Sales tax: 6.25%
Jersey City
Income tax: 10.75%
Sales tax: 6.63%
Chicago has cleaner air on average: 21.0 AQI (Good) compared to 61.0 AQI (Moderate) in the other city. Lower AQI means cleaner, healthier air.
Pick Chicago if you prioritize lower overall cost of living (index 105.7 vs 113.0).
Pick Jersey City if you prioritize higher median household income ($94,813/yr).
Pick Chicago if you prioritize cheaper rent ($1,380/mo median).
Pick Chicago if you prioritize cleaner air quality (avg AQI 21.0).
Is Chicago cheaper than Jersey City?
Chicago is cheaper overall, with a cost of living index of 105.7 versus 113.0 (US average = 100). That means prices run about 6% lower in Chicago.
How much is rent in Chicago vs Jersey City?
Median rent is $1,380/mo in Chicago, IL and $1,902/mo in Jersey City, NJ. Chicago, IL has the lower rent by about 27%.
Which has higher salaries — Chicago or Jersey City?
Median household income is $75,134 in Chicago, IL and $94,813 in Jersey City, NJ. Jersey City, NJ 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?
Chicago, IL has better air quality on average: 21.0 AQI versus 61.0 AQI. Both are EPA AirNow annual averages; lower is better.
Which has lower taxes — Chicago or Jersey City?
Illinois's top income tax rate is 4.95% and New Jersey's is 10.75%. Chicago, IL has the lower rate.
What salary do I need in Jersey City to match my Chicago income?
To maintain the same purchasing power, a salary of $100,000 in Chicago, IL is equivalent to roughly $106,888 in Jersey City, NJ (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