The minimum wage in Chicago is $16.60/hour in 2026. See how it compares to the MIT living wage of $22.00/hour and local cost of living.
Last updated: May 2026 · Data: MIT Living Wage Calculator, C2ER, U.S. Census, BLS, IRS, state and city sources
Calculate annual, monthly, and weekly income at any hourly wage in Chicago.
Chicago sets a local minimum wage of $16.60/hour, above the Illinois statewide minimum of $15.00/hour. The City of Chicago sets its own minimum wage above the Illinois state minimum and raises it each July 1 in line with inflation; surrounding suburbs outside Cook County follow the lower state rate. The bigger question for most workers is how that compares to what it actually costs to live in Chicago. With average 1-bedroom rent near $1,900/month and a cost-of-living index of 116 (US average = 100), the gap between the minimum wage and a true living wage is significant.
| Benchmark (Chicago, 2026) | Hourly | Annual (full-time) |
|---|---|---|
| Applicable minimum wage | $16.60 | $34,528 |
| MIT living wage (single adult) | $22.00 | $45,760 |
| MIT living wage (family of four, one earner) | $43.00 | $89,440 |
| Federal minimum wage | $7.25 | $15,080 |
| Illinois state minimum wage | $15.00 | $31,200 |
| Average rent (1-bedroom, annual) | - | $22,800 |
Living wage figures: MIT Living Wage Calculator for Cook County. Minimum wage reflects the rate applicable to most private employers in Chicago.
Chicago is the third-largest city in the United States and the economic capital of the Midwest, a global hub for derivatives and futures trading (CME and Cboe), corporate headquarters, rail and air transportation through O'Hare, manufacturing, healthcare, and a fast-growing technology sector.
| Local Metric | Chicago (2026 estimate) |
|---|---|
| Metro population | 2.7 million |
| County / jurisdiction | Cook County |
| Cost of living index (US avg = 100) | 116 |
| MIT living wage, single adult | $22.00/hour |
| MIT living wage, one earner supporting a family of four | $43.00/hour |
| Applicable minimum wage | $16.60/hour |
| Average rent, 1-bedroom | $1,900/month |
| Average rent, 2-bedroom | $2,350/month |
| Median home price | $360,000 |
| Median household income | $71,000/year |
| Combined sales tax rate | 10.25% |
| Effective property tax rate | 1.75% of value/year |
Local figures are 2026 estimates compiled from the MIT Living Wage Calculator, the C2ER Cost of Living Index, U.S. Census and Zillow housing data, and city and county sources. Verify current figures before relying on them.
Chicago sets a local minimum wage of $16.60/hour, above the Illinois statewide minimum of $15.00/hour. The City of Chicago sets its own minimum wage above the Illinois state minimum and raises it each July 1 in line with inflation; surrounding suburbs outside Cook County follow the lower state rate. A full-time worker (40 hours/week, 52 weeks) earns about $34,528 per year gross before taxes at that rate.
Not for a single adult. The MIT Living Wage Calculator estimates a single adult in Cook County needs about $22.00/hour (roughly $45,760/year) to cover basic costs. That is $5.40/hour above the applicable minimum wage, and a one-earner family of four needs closer to $43.00/hour.
At $16.60/hour, full-time work (2,080 hours/year) produces about $34,528 gross. Part-time at 30 hours/week is roughly $25,896/year. Average 1-bedroom rent in Chicago is about $1,900/month, or $22,800/year.
The City of Chicago sets its own minimum wage above the Illinois state minimum and raises it each July 1 in line with inflation; surrounding suburbs outside Cook County follow the lower state rate.
The federal minimum wage is $7.25/hour and has not changed since 2009. Illinois sets a higher state minimum wage of $15.00/hour, reached in 2025, which applies in Chicago instead of the federal floor.