Illinois Cost of Living
Illinois is 7% below the national average — but Chicago runs 7% above, and property tax (2nd highest in the US) catches up fast. Compare salary equivalence, see the full cost breakdown, and weigh IL against neighboring states.
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The Illinois Cost of Living Paradox
Illinois statewide is 7% below the national average (cost of living index 93). But that single number hides two very different realities. Chicago metro comes in at 107 — above average — while downstate areas (Springfield, Champaign, Peoria, Bloomington) average just 83, making them 17% cheaper than the national average.
The real catch is property tax. Illinois has the 2nd highest property taxes in the US, running 45% above the national average regardless of where you live in the state. A $300,000 home in Cook County costs roughly $6,300/year in property tax alone.
But here is the hidden gem: Illinois charges $0 tax on retirement income. Social Security, pensions, 401(k) distributions, IRA withdrawals — all fully exempt from state income tax. Combine that with downstate living costs at index 83, and Illinois becomes one of the most affordable retirement destinations in the country — if you can stomach the property tax bill.
How to Use This Tool
Salary Equivalence tab
Enter your current salary, select where you are coming from, and choose an Illinois location (statewide, Chicago, or downstate). The tool calculates what salary you would need in Illinois to maintain the same purchasing power.
Cost Breakdown tab
See how Illinois costs compare to the national average across 5 categories: housing, groceries, transportation, healthcare, and property tax. Both statewide and Chicago-specific numbers are shown side by side.
Compare With 3 States tab
Pick any 3 states to compare against Illinois on cost of living index, income tax, sales tax, property tax, and salary equivalence. Useful for anyone weighing a move to or from Illinois.
Share your result
All inputs are encoded in the URL. Click Share to send your exact comparison to a partner, employer, or financial advisor.
The Formula
Salary equivalence is calculated using cost of living indexes from the C2ER (Council for Community and Economic Research):
Example: $100,000 in California (index 134) → Chicago (index 107)
= $100,000 × (107 / 134) = $79,851
Example: $100,000 in New York (index 127) → Downstate IL (index 83)
= $100,000 × (83 / 127) = $65,354
The index is a composite score where 100 = national average. Components are weighted by typical household spending: housing (~30%), groceries (~15%), transportation (~10%), healthcare (~5%), and miscellaneous goods and services (~40%).
Example
Sarah — Software engineer relocating from San Francisco to Chicago
Sarah earns $150,000 in San Francisco. She is considering a move to Chicago and wants to know what salary would give her the same purchasing power.
Salary equivalence
Sarah would need roughly $120K in Chicago to match her $150K San Francisco lifestyle. That is a 20% reduction. However, she should also factor in Illinois' 4.95% flat income tax (California ranges from 1%–13.3%) and Chicago's higher property tax if she plans to buy a home.
Jim — Retiree considering downstate Illinois
Jim is 67, retired with $55,000/year from Social Security and a pension. He currently lives in an average-cost state and wants to know how far that goes in downstate Illinois.
Retirement equivalence
Jim's $55K stretches like $66K+ in downstate Illinois, and he pays $0 state income tax on all of it. The only caveat: property taxes. On a modest $150K home in downstate IL, he would still pay roughly $3,000–$4,000/year in property tax.