Expat Finance Guide: Banking & Costs in Chicago

The cost of living in Chicago scores 1.0/5, with a personal security rating of 2.0/5. Explore banking, taxes, and financial planning for expat families below.

The United States employs a complex progressive tax system administered at federal, state, and local levels. Chicago residents face federal income tax, Illinois state income tax, and various local taxes. The U.S. follows a worldwide taxation approach for residents and citizens, making it one of the few countries to tax citizens regardless of residence. The tax system generally presents challenges for expatriates due to extensive reporting requirements and potential double taxation. Chicago's combined tax burden typically ranks in the middle-to-upper range compared to other major U.S. cities, with Illinois state income tax adding approximately 4.95% to federal rates.