Cost of Living in Illinois — Housing, Taxes & Everyday Expenses
Below-average costs outside Chicago, flat 4.95% tax
Data: 2026-Q2 · BLS · HUD · KFFOverview
Illinois offers below-average costs of living outside Chicago. Chicago itself is moderately priced compared to coastal cities. The state has significant fiscal challenges but remains a major economic hub.
Housing costs
1BR rent in Chicago averages $1,700-$2,000 in popular neighborhoods. Outside Chicago, rents drop to $900-$1,200 in cities like Peoria, Rockford, and Springfield.
1BR FMR across major Illinois cities: $1,581 – $1,581/mo (HUD FY2026)
Tax reality
Illinois has a flat income tax rate of 4.95%.
Everyday expenses
At a cost of living index of 95, Illinois is about 5% cheaper than the national average of 100. Chicago offers strong purchasing power relative to coastal cities — lower housing costs with comparable urban amenities.
City comparison
Salary reality in Illinois
Cost of Living in Illinois — FAQ
What is Illinois's income tax rate?
Illinois has a flat income tax rate of 4.95%, one of the lower flat rates among states with income tax.
Is Chicago affordable?
Chicago has a cost of living index of approximately 105-110, moderately above the national average but significantly below New York, San Francisco, and Los Angeles.