What’s the cost of living in Illinois?
When considering a move to a new state, understanding the cost of living is vital for effective budgeting and financial planning. If you’re planning to move to Illinois but want to get to grips with the ins and outs before you pack up, here are some current statistics related to the cost of living in Illinois.
The average cost of living in Illinois
Illinois is the sixth most populous state in the US, with over 12.5 million people calling it home.
According to data gathered in 2022 from MERIC, the Missouri Economic Research and Information Center, it has a relatively average cost of living—ranking 17th from the lowest to the highest states.
While the Bureau of Economic Analysis estimates on average that an Illinois resident spends $49,558 per year, per the bureau’s 2021 data.
Housing costs in Illinois
As of March 2023, the average home value in Illinois is estimated to be around $236,049, according to the Zillow Home Value Index as of March 2023.
It’s important to note that housing prices can significantly differ across various regions within the state.
Typical Home Prices in Illinois:
Naperville - $497,926
Chicago - $281,259
Aurora - $265,602
Joliet - $207,237
Rockford - $138,330
For those considering renting in Illinois, monthly rental price for a two-bedroom apartment is approximately $1,107.
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.
Average Monthly Utility Costs in Illinois:
Phone bill: $114
Natural gas: $97
Energy bill: $95.86
Monthly water bill: $26
Grocery and food costs 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.
Transportation costs 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.
Healthcare costs 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.
Annual Healthcare Expenditure in Illinois Estimated by MIT:
One adult, no children: $3,287
One adult, one child: $8,491
One adult, two children: $8,502
Two adults (one working), no children: $6,886
Two adults (one working), one child: $8,502
Two adults (one working), two children: $8,427
Two adults (two working), no children: $6,886
Two adults (two working), one child: $8,502
Two adults (two working), two children: $8,427
Childcare costs in Illinois
Families in Illinois currently pay around $9,946 per year for childcare for one child. This figure doubles for two children.
However, it's important to note that this figure can vary across the state.
Taxation in Illinois
Illinois’s state income tax rates is a flat rate of 4.95%.
Taxes in Illinois compared to neighboring states:
Illinois Income Tax: 4.95% flat rate
Wisconsin Income Tax: 3.54% - 7.65%
Indiana Income Tax: 3.23% flat rate
Missouri Income Tax: 1.5% - 5.4%
Iowa Income Tax: 0.33% - 8.53%
The sales tax rate in Illinois consists of a state sales tax and additional local sales taxes imposed by counties and municipalities. 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.
In addition to the state sales tax, counties, municipalities, and other local jurisdictions impose local taxes. These local sales tax rates can range from 0.25% to 4.75%, depending on the specific location within Illinois.
The bottom line
The amount of money needed to live comfortably in Illinois can vary depending on location, lifestyle, family size, and personal preferences. However, as the most expensive state in the US, you may need more than you first think.
It's essential to consider these factors, along with personal circumstances and preferences, when evaluating the cost of living in Illinois. In addition, consulting with a financial advisor can provide valuable insights and assistance in managing expenses and financial planning.
Whether you’re retirement planning or considering relocating to chase a new career, Unbiased can assist you with your move's financial ins and outs. Find the right advisor for your needs today.
Charlie Barton is a writer at Unbiased. He has been writing about personal finance and investing since 2017, with extensive knowledge of platforms and products. Charlie has a first-class degree from the London School of Economics.