What is the average income in Illinois?

The median household income in Illinois is approximately $78,433 (2024), ranking 17th. Chicago metro drives much of the income with a median of $82,000, while downstate cities like Springfield and Peoria are around $58,000-$65,000.

Why are Illinois property taxes so high?

Illinois has the 2nd highest property taxes in the US (average effective rate 2.07%) because the state relies heavily on property taxes to fund local governments, schools, and pensions. Cook County and collar counties can see effective rates of 2.5-3%+. A $300,000 home costs $6,200-$9,000/year in property taxes.

Living in Illinois: Income, Housing, Taxes & Cost of Living (2026)

Illinois at a Glance

Metric	Value	National Rank
Population (2024)	12.5 million	6th
Median household income	$78,433	17th
Median home price	$270,000	Below average
Cost of living index	95 (non-Chicago), 107 (Chicago)	Varies
State income tax	4.95% flat	Average
Sales tax (state + local avg)	8.83%	3rd highest
Property tax (effective rate)	2.07%	2nd highest in US

Income and Housing

City/Metro Area	Median Income	Median Home Price	Property Tax Rate	Affordability
Chicago (city)	$65,800	$320,000	2.10%	Fair
Chicago suburbs (DuPage)	$98,400	$380,000	2.05%	Fair
Naperville	$125,000	$475,000	2.20%	Good
Rockford	$52,200	$155,000	2.85%	Fair
Springfield	$62,400	$145,000	1.90%	Good
Peoria	$58,400	$135,000	2.25%	Good
Champaign	$54,200	$175,000	1.95%	Good
Bloomington-Normal	$72,400	$195,000	2.05%	Good

Property Tax Reality Check

Home Value	Annual Property Tax (2.07%)	Monthly Cost	National Average (0.99%)
$200,000	$4,140	$345	$1,980
$300,000	$6,210	$518	$2,970
$400,000	$8,280	$690	$3,960
$500,000	$10,350	$863	$4,950

Taxes

Gross Income	Federal	IL Income Tax (4.95%)	FICA	Property ($270K)	Total Rate
$75,000	$8,115	$2,970	$5,738	$5,589	29.9%
$100,000	$13,615	$4,208	$7,650	$5,589	31.1%
$150,000	$25,915	$6,683	$10,878	$5,589	32.7%

Illinois Pros and Cons

Financial Pros	Financial Cons
Affordable housing outside Chicago	2nd highest property taxes in US
Major job market (Fortune 500 HQs in Chicago)	Population declining (outmigration)
No tax on retirement income	3rd highest sales tax (8.83%)
Flat income tax (4.95%)	Pension crisis = future tax risk
World-class city amenities (Chicago)	High auto insurance in Chicago
Strong union protections	Cold winters = heating costs