Thinking of making Illinois your home in 2025? You might be pleasantly surprised: the Land of Lincoln boasts personal finance–friendly living expenses about 8% cheaper than the U.S. average. But don’t be fooled — pockets of this sprawling state can be pricier than you’d expect. What is the cost of living in Illinois anyway?
KEY TAKEAWAYS
- Illinois offers an 8% lower cost of living than the U.S. average.
- Housing, utilities, and groceries generally cost less in Illinois.
- Healthcare expenses in Illinois align closely with the national averages.
- Transportation costs can vary significantly based on location and lifestyle.
- Illinois has a flat 4.95% income tax rate and varying property taxes by county.
Average Cost of Living in Illinois
Based on the latest data, a typical household in Illinois spends about $89,880 a year, making the Illinois living cost slightly lower than the national average.
| Expense Category | Average Annual Cost in Illinois | National Average Annual Cost |
| Housing | $28,512 | $35,600 |
| Utilities | $4,896 | $5,628 |
| Electricity | $1,150 | $1,644 |
| Gas | $996 | $780 |
| Water | $294 | $468 |
| Internet | $360 | $936 |
| Phone | $1,428 | $1,848 |
| Streaming services | $594 | $576 |
| Food and grocery | $3,923 | $5,021 |
| Healthcare (family) | $24,290 | $25,500 |
| Transportation | $9,346 | $13,174 |
Housing Costs
As of January 2025, the median home price in Illinois is around $357,138. That’s a 2.6% increase from last year’s $256,900. Prices are climbing, but compared to the national median of $446,300, Illinois is still a more affordable place to buy a home, contributing to a lower cost of living in Illinois overall.
Utilities
Illinois residents generally pay less for utilities than the national average, which is a small win for your budget. On average, utilities in Illinois cost around $408 per month, while the U.S. average sits higher at about $469.
Electricity in Illinois runs around $95.86 per month, which is noticeably cheaper than the national average of $137. However, the average gas bill in Illinois per month is a bit expensive at $83 per month, compared to the U.S. average of $72.
Water bills are lower, too. The average water bill for one person in Illinois costs about $24.5 versus $39 nationally.
Internet is almost the same as the national average, at around $79 per month. Phone bills are also lower at about $119 compared to the $157 monthly national average.
If you’re into streaming, expect to spend around $49.5, which is similar to the U.S. average of $48.
Food and Grocery Costs
Groceries in Illinois are a little easier on the wallet compared to the national average. On average, a person in Illinois spends about $327.3 per month on groceries, while the national average is higher at around $418.4.
Healthcare Expenses
Healthcare costs in Illinois are pretty much in line with the national average, though what you pay depends on things like insurance coverage, your provider, and personal health needs.
On a national level, healthcare spending adds up fast, with average costs reaching about $14,570 per person. In Illinois, if you have employer-sponsored insurance, the average annual premium for family coverage is around $24,290 — slightly lower than the average of $25,500.
Looking ahead, medical costs are expected to keep rising. The projected increases are about 8% for group plans and 7.5% for individual plans.
Transportation Costs
Transportation costs in Illinois can vary from about $9,346 to $17,391 per year depending on where you live and how much you drive. On a national level, the average household spends around $13,174 annually on transportation. This makes it the second biggest expense after housing.
Since transportation is a major expense, you need to know how to budget for gas, maintenance, and insurance for financial stability.
Taxes
Illinois has a flat income tax rate of 4.95%. This means everyone pays the same percentage regardless of income. In contrast, federal income tax rates are progressive. They start at 10% for lower incomes and reach 37% for those earning over $626,350.
For married couples filing jointly, income brackets are doubled.
On the sales tax side, Illinois has a base rate of 6.25%, but local taxes can push that higher depending on where you live.
Illinois property taxes are also not fixed statewide. They vary by local taxing districts based on funding needs.
What Are the Cheapest Cities to Live in Illinois?
Here are the top 10 affordable cities to consider if you’re looking for a lower cost of living in IL.
| City | Median Home Value | Cost of Living Compared to National Average |
| Hoopeston | $72,718 | 29.4% lower |
| Decatur | $94,168 | 27.1% lower |
| Granite City | $107,481 | 17.5% lower |
| Freeport | $114,255 | 27.3% lower |
| Clinton | $129,835 | 25% lower |
| Charleston | $141,866 | 30.3% lower |
| Belleville | $139,816 | 19.2% lower |
| Peoria | $126,146 | 24.4% lower |
| Bloomington | $244,782 | 17.9% lower |
| Rockford | $160,500 | 21% lower |
Illinois isn’t the cheapest state, but it’s far from the most expensive. Housing is reasonable, groceries won’t drain your bank account, and utilities are manageable. Just keep an eye on taxes and transportation costs.
FAQ
What Is the Most Expensive City in Illinois?
Chicago is the most expensive city in Illinois, with a cost of living 24% higher than the state average and 14% higher than the national average.
How Expensive Is Illinois?
Overall, Illinois is about 8% less expensive than the national average.
How Much Money Do You Need to Live Comfortably in Illinois?
To live comfortably in Illinois, a single person would need to earn around $95,098 per year.
Where Does Illinois Rank in Cost of Living?
Illinois ranks 21st in cost of living among all U.S. States.
Sources
- Heritage Foundation. “Personal Inflation Calculator: Illinois.”Heritage Foundation. Accessed March 13, 2025.
- U.S. Census Bureau. “New Residential Sales Data.”U.S. Census Bureau. Accessed March 13, 2025.
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- Move.org. “The Average Cost of Food in the U.S.” Move.org. Accessed March 13, 2025.
- Centers for Medicare & Medicaid Services. “National Health Expenditure Data: Fact Sheet.” CMS. Accessed March 13, 2025.
- Kaiser Family Foundation. “Election State Fact Sheets: Illinois.” KFF. Accessed March 13, 2025.
- PricewaterhouseCoopers. “Behind the Numbers: Healthcare Cost Trends.” PwC. Accessed March 13, 2025.
- Bureau of Transportation Statistics. “Transportation Cost Burden Falls Significantly in 2025.” BTS. Accessed March 13, 2025.
- Illinois Department of Revenue. “Tax Information and Answers: Property Tax in Illinois.” Illinois Department of Revenue. Accessed March 13, 2025.
- Illinois Department of Revenue. “Illinois Tax Questions and Answers.” Illinois Department of Revenue. Accessed March 13, 2025.
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- CNET. “The Average U.S. Internet Bill is $78 Monthly—Here’s How You Can Lower It.” CNET. Accessed March 13, 2025.