What is the cost of living in Illinois?

Summary

What is the average cost of living in Illinois?

The average cost of living in Illinois has risen 17% in recent years.

The Bureau of Economic Analysis estimated that an Illinois resident spent $49,558 per year on average, per the bureau’s 2021 data. 

According to an inflation tracker created by members of Congress’s Joint Economic Committee, state Illinoisans needed $11,600 more in 2023 to cover the same expenses.

This brings the annual spending of someone living in Illinois to around $60,000.

According to data gathered in 2022 from MERIC, the Missouri Economic Research and Information Center, it has a relatively average cost of living – ranking 17^th from the lowest to the highest states.  

What is the average monthly cost of living in Illinois?

Your housing situation, your family size, and your lifestyle will all impact how much you spend each month.

Using the data discussed in this article, here is an overview of the average amount a single person renting a home in Illinois could expect to spend each month:

How much is housing in Illinois?

According to the Zillow Home Value Index, the average home value in Illinois is estimated to be around $267,365 as of October 2024.

It’s important to note that housing prices can significantly differ across various regions within the state.

Here are some examples of typical home prices in the 102 counties in the State of Illinois: 

For those considering renting in Illinois, according to Zillow, the median rent for all bedrooms and all property types in Illinois is $1,758. In the state’s main city, Chicago, this rises to $1,950 a month.

What are the average utility costs in Illinois?

Utility costs play a significant role in Illinois's overall cost of living. According to Forbes, the average monthly cost is around $412.36.

How much do groceries and food cost in Illinois?

When it comes to groceries and food costs, Illinois generally aligns with prices found elsewhere in the United States.   

According to Zippia, those in Chicago pay over $327 on average each month.   

According to 2021 data from the Bureau of Labor Statistics, the average spending on food at home is $5,259 annually, or about $438 per month for US households.   

How much does transportation cost in Illinois?

Transportation costs, including gas prices and vehicle maintenance, impact Illinois's overall cost of living.  

According to MIT, a single adult with no children can expect to pay upwards of $5,300. 

Gas prices in Illinois are typically in and around the national average. At the time of writing, Illinois was slightly above the national average. These prices fluctuate over time.   

It is also worth noting that prices can vary across different regions within the state.  

How much is healthcare in Illinois?

Understanding healthcare expenses is crucial when considering the cost of living.  

The specific healthcare costs in Illinois can vary depending on factors such as insurance coverage and individual circumstances. Therefore, it is advisable to research and consult with healthcare providers and insurance companies to obtain accurate cost estimates. 

MIT estimates:  

Check out the average cost of health insurance in the US here.

How much does childcare cost in Illinois?

According to Procare solutions, a childcare management software, annual infant care in Illinois can cost families approximately $16,400 a year.

For older children, the cost is slightly less, with placing a four-year-old child into center-based care setting you back around $12,000 annually.

This is a huge expense for families, with the majority of families spending over 10% of their gross income on childcare.

Minimum wage earners in Illinois, who make just $1,430 per month, would spend over 80% of their income to place an infant in center-based care.

While these costs are overwhelming, it's important to note that this figure can vary across the state.  

How much tax will I pay in Illinois?

Illinois’s state income tax rate is a flat rate of 4.95%.    

Here's a comparison of income tax rates among some neighboring states:

The state sales tax rate in Illinois is 6.25%.

However, it's important to note that local sales tax rates can vary and may be added on top of the state sales tax rate. 

You can check out the complete guide to taxes in Illinois here.

What is the cost of retiring in Illinois?

According to a CNBC article, the average cost of a “comfortable” retirement in Illinois was $60,000 in 2023.

However, according to Estate and Probate Legal Group, a comfortable retirement will set you back $1.1 million, which is in line with the national average.

One big plus Illinois has when it comes to costs in retirement is around tax.

Illinois exempts nearly all retirement income from taxation, including Social Security retirement benefits, pension income, and retirement savings, such as your IRA and 401(k).

While you will still have to pay taxes on your investments, property, and other income, this is a huge boost for Illinois retirees.

The bottom line 

The amount of money needed to live comfortably in Illinois can vary depending on location, lifestyle, family size, and personal preferences.

It's essential to consider these factors, along with personal circumstances and preferences, when evaluating the cost of living in Illinois.

Consulting with a financial advisor can also provide valuable insights and assistance in managing expenses and financial planning. 

Get expert financial advice and learn more about the cost of living and how to manage it with an SEC-regulated advisor. Let Unbiased match you with the best financial advisor for your needs.