Quick Answer
120,000 is a strong salary in Chicago, placing you above roughly 89% of earners. After taxes (~25.9% effective rate), your take-home is approximately $7,410/month. A 1-bedroom apartment averages $2,000/month (27% of net income).
The question "is 120k good in Chicago?" comes up frequently among professionals considering new roles or relocations. The honest answer requires looking at data—not just gut feelings—and that's exactly what we provide in this comprehensive salary analysis.
Chicago (pop. 2.7 million) is moderately expensive compared to global metros, with a cost of living index of 78 (NYC = 100). Average 1-bedroom rent is $2,000/month and a monthly transit pass costs $110. It's considered a strong tech market with a tech score of 7/10.
Chicago offers a distinct blend of career opportunities and lifestyle factors that shape salary expectations. The city's industry mix—from tech startups to established financial institutions—creates varied compensation structures. Understanding which sectors drive the local economy helps you benchmark 120k against what similar professionals actually earn.
Professionals earning 120k in Chicago typically fall into specific experience brackets and industries. For some, this salary represents a strong mid-career income; for others, it may be entry-level in a high-paying field. Knowing where you stand relative to peers in your specific role and industry provides valuable leverage when negotiating raises or evaluating new offers.
Beyond raw numbers, quality of life factors in Chicago—including average commute times, cultural amenities, healthcare access, and work-life balance expectations—contribute to overall compensation satisfaction. A lower salary in a city with excellent public services and shorter commutes may provide better quality of life than a higher salary in a more expensive, time-consuming environment.
The relationship between salary and lifestyle varies dramatically across Chicago's neighborhoods. Central areas command premium rents but reduce commuting costs and time, while suburban options offer more space but may require a car. These trade-offs are highly personal, but understanding them helps you evaluate whether 120k supports your preferred lifestyle.
Salary growth trajectories in Chicago also matter. If you're earning 120k today, understanding typical annual raise percentages (usually 3-7% for strong performers) and how often professionals change jobs for salary bumps (every 2-3 years in competitive markets) helps you project your financial future in this city.
Is 120k a good salary in Chicago in 2026?
120k is a very strong salary, placing you in the top 11% of earners in Chicago. The local median salary is $65,000, so earning $120,000 puts you at the 89th percentile. After accounting for housing (average $2,000/month for a 1-bedroom), taxes, and daily costs, this salary allows for meaningful monthly savings.
How much tax will I pay on 120k in Chicago?
On a gross salary of $120,000 in United States, you can expect an effective tax rate of approximately 25.9%. This means roughly $31,077 per year goes to taxes, leaving you with a net income of about $88,923 per year ($7,410 per month). The exact amount may vary based on deductions, filing status, and local levies.
What is the average rent in Chicago in 2026?
As of 2026, the average rent for a 1-bedroom apartment in central Chicago is approximately $2,000 per month, while a 2-bedroom averages around $2,800 per month. On a 120k salary, a 1-bedroom rent would consume about 27% of your after-tax income, which is within the recommended 30% threshold.
How does 120k in Chicago compare to other cities?
Purchasing power varies by city, so 120k in Chicago is not equivalent elsewhere. Adjusted for cost of living, the same standard of living would require approximately: New York ($153,600), London ($130,769), San Francisco ($161,538). Chicago has a purchasing power index of 92 (NYC = 100), meaning your money goes somewhat less far than in New York.
What is the cost of living in Chicago in 2026?
Chicago has a cost of living index of 78 (where New York = 100), making it a moderately expensive city. Key monthly costs include: rent ($2,000 for 1BR), groceries (~$369), transport ($110), and utilities (~$117). Total monthly expenses for a single professional average around $2,791 before discretionary spending.
Can I save money on 120k in Chicago?
On 120k in Chicago, your estimated monthly take-home pay is $7,410 after taxes. With typical expenses of $2,791/month (rent, groceries, transport, utilities, and leisure), you could potentially save around $4,619 per month ($55,428/year). This provides solid room for building an emergency fund and investing.
Last updated: 2026-02-19 | Data sources: Numbeo, OECD, Glassdoor, and local government statistics.
Disclaimer: This page uses market data and cost-of-living sources for guidance. All figures and advice are estimates, not guarantees. Local conditions and personal circumstances may vary.
