IllinoisMoney Index August 2026
"Big-city finance, heartland costs."
Illinois — Money Index — Key Facts
- Business Climate: 5/10. Illinois scores 5/10 on business climate with 4/10 for remote work — moderate runway for entrepreneurs.
- Inflation Resilience: 5/10. Illinois scores 5/10 on inflation resilience — middle of the national pack.
- Illinois Quirk. Illinois has a flat 4.95% income tax but among the highest property taxes — Chicago property owners feel it most.
- Remote Work: 4/10. Illinois scores only 4/10 for remote work — infrastructure and tax math favor in-office economies here.
- Affordability: 6/10. Illinois sits in the middle of the affordability pack (6/10).
- Retirement: 5/10. Illinois is workable for retirees (5/10) but not at the top of the pack.
- Banking Access: 7/10. Illinois scores 7/10 on banking access — fine for everyday accounts, worth shopping online HYSA rates to beat local offers.
- Midwest Money Profile. Illinois sits in the Midwest — and its personality is "The Steady Hand". Middle-of-the-pack on most factors — a balanced base for long-horizon wealth.
- Tax Friendliness: 4/10. Illinois's state income-tax burden (4/10) is middle-of-the-pack — not a haven, not punitive.
- The Short Answer. Illinois is a balanced state for money — chicago finance, high property tax.
Illinois is a balanced state for money — chicago finance, high property tax.
On our 1-10 money scorecards, Illinois ranks 4/10 on tax friendliness, 6/10 on cost of living, and 5/10 on retirement — placing it #39 of 50 states overall.
How Illinois scores across the board
Seven dimensions of household finance, scored 1-10. Higher is better in every category.
Money personality: The Steady Hand
Middle-of-the-pack on most factors — a balanced base for long-horizon wealth.
Four Illinois money truths
Illinois's state income tax burden (4/10) is middle-of-the-pack — not a tax haven, not punitive.
Cost of living scores 6/10 — Illinois sits in the middle of the affordability pack.
Retirement friendliness 5/10 — workable for retirees but not at the top of the pack.
Business climate 5/10 with 4/10 for remote work — moderate runway for entrepreneurs and laptop-class earners.
"Illinois has a flat 4.95% income tax but among the highest property taxes — Chicago property owners feel it most."
Money lessons from Illinois
- 1
State tax policy is part of your investment strategy — not just where you live
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Illinois money FAQ
Is Illinois a good state for keeping your money?+
Illinois scores 37 on our composite money index, with a the steady hand profile. Illinois is a balanced state for money — chicago finance, high property tax.
What is the state income tax in Illinois?+
Illinois's state income tax burden is roughly in the middle of the pack. On our 1-10 tax-friendliness scale (10 = no income tax), Illinois scores 4.
Is Illinois good for retirement?+
Illinois scores 5/10 on retirement friendliness, factoring in tax treatment of Social Security and pension income, healthcare costs, and overall affordability for fixed-income households.
Is Illinois good for business owners and remote workers?+
Illinois scores 5/10 on business climate and 4/10 on remote-work suitability — covering tax incentives, talent pools, infrastructure and cost of doing business.
How affordable is Illinois?+
Illinois scores 6/10 on cost of living (10 = cheapest). Combined with 5/10 inflation resilience, that shapes how far paychecks stretch here.
What money personality fits Illinois?+
The Steady Hand — Middle-of-the-pack on most factors — a balanced base for long-horizon wealth.
What's surprising about money in Illinois?+
Illinois has a flat 4.95% income tax but among the highest property taxes — Chicago property owners feel it most.
