Median rent is 4% lower in Minneapolis ($1,329/mo vs $1,380/mo). Buying is cheaper in Chicago, where the median home runs $315,200 versus $345,600. Households earn more in Minneapolis ($80,269 vs $75,134 a year). Taken together, Minneapolis is the more affordable choice with a cost index of 102.6 against 105.7 — about 3% lower overall prices. After adjusting income for local prices, a typical paycheck stretches further in Minneapolis, MN.
Quick verdict
Minneapolis is 3% cheaper overall
Cost index: 102.6 in Minneapolis vs 105.7 in Chicago (US average = 100)
City A
Chicago, IL
City B
Minneapolis, MN
How much would you need to earn in Minneapolis, MN to maintain your standard of living from Chicago, IL?
Equivalent salary in Minneapolis, MN
$72,825
You could earn $2,175 less (3% 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
Minneapolis
Minnesota
👥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
Median rents are similar in both cities: $1,380/mo in Chicago and $1,329/mo in Minneapolis. Median home values are within 9% of each other: $315,200 in Chicago and $345,600 in Minneapolis.
1BR Fair Market Rent
2BR Fair Market Rent
BLS OEWS 2023 — metro-level data
Illinois's top income tax rate is 4.95% versus 9.85% in Minnesota, so Chicago is more tax-friendly for high earners. Sales tax is 6.25% in Illinois and 6.88% in Minnesota; Chicago has the lower rate (local add-ons may apply in both).
Chicago
Income tax: 4.95%
Sales tax: 6.25%
Minneapolis
Income tax: 9.85%
Sales tax: 6.88%
Chicago has cleaner air on average: 21.0 AQI (Good) compared to 24.0 AQI (Good) in the other city. Lower AQI means cleaner, healthier air.
Pick Minneapolis if you prioritize lower overall cost of living (index 102.6 vs 105.7).
Pick Minneapolis if you prioritize higher median household income ($80,269/yr).
Pick Chicago if you prioritize lower state income tax (4.95%).
Is Chicago cheaper than Minneapolis?
Minneapolis is cheaper overall, with a cost of living index of 102.6 versus 105.7 (US average = 100). That means prices run about 3% lower in Minneapolis.
How much is rent in Chicago vs Minneapolis?
Median rent is $1,380/mo in Chicago, IL and $1,329/mo in Minneapolis, MN. Minneapolis, MN has the lower rent by about 4%.
Which has higher salaries — Chicago or Minneapolis?
Median household income is $75,134 in Chicago, IL and $80,269 in Minneapolis, MN. Minneapolis, MN 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 24.0 AQI. Both are EPA AirNow annual averages; lower is better.
Which has lower taxes — Chicago or Minneapolis?
Illinois's top income tax rate is 4.95% and Minnesota's is 9.85%. Chicago, IL has the lower rate.
What salary do I need in Minneapolis to match my Chicago income?
To maintain the same purchasing power, a salary of $100,000 in Chicago, IL is equivalent to roughly $97,100 in Minneapolis, MN (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