How Illinois Compares to Other Midwest States for New Residents

Choosing where to relocate within America’s heartland requires careful consideration of multiple factors, and understanding Illinois vs other Midwest states helps you make an informed decision. At LD Movers in Illinois, we help families and professionals navigate relocations throughout the region, and we know that comparing Illinois compared to Michigan Indiana Ohio and other neighboring states is essential for finding your ideal home. This comprehensive Midwest relocation guide Illinois examines how the Prairie State stacks up against its neighbors across key factors including cost of living, job opportunities, taxes, quality of life, and cultural offerings. Whether you’re deciding between moving to Illinois or Wisconsin, evaluating Illinois vs Missouri cost of living, or determining the best Midwest state to relocate to, this guide provides the comparative insights you need to choose confidently.

Cost of Living: How Illinois Stacks Up

When examining Illinois vs other Midwest states, cost of living presents a complex picture. Illinois sits in the middle of Midwest affordability—more expensive than Iowa or Indiana but generally cheaper than Minnesota’s metro areas.

Illinois vs Missouri cost of living shows Missouri with a clear advantage in housing costs and overall expenses. St. Louis and Kansas City offer significantly lower home prices than Chicago, and Missouri’s lack of local income taxes in most areas creates additional savings. However, Illinois’s larger job market and higher average salaries can offset these cost differences for many professionals.

Moving to Illinois or Wisconsin from a cost perspective depends heavily on specific locations. Rural Wisconsin is quite affordable, but Madison and Milwaukee approach Chicago-area costs while offering smaller job markets. Wisconsin’s income tax rates are comparable to Illinois, though property taxes vary significantly by municipality in both states.

Indiana presents perhaps the starkest cost contrast. Indianapolis and surrounding areas offer substantially lower housing costs—30-40% less than comparable Chicago suburbs. Indiana’s flat 3.15% income tax undercuts Illinois’s 4.95%, and property taxes are generally lower. For families prioritizing affordability, Indiana merits serious consideration, though job opportunities and cultural amenities don’t match Illinois’s offerings.

Ohio cities like Columbus, Cleveland, and Cincinnati provide affordable living with decent job markets. Housing costs substantially undercut Illinois, particularly Chicago-area prices. However, Ohio’s income tax structure includes both state and local taxes that can approach Illinois’s burden depending on location.

Michigan offers mixed affordability. Detroit-area suburbs and smaller cities like Grand Rapids provide good value, while Ann Arbor’s costs approach Chicago levels due to university influence. Michigan’s income tax rate (4.25%) sits slightly below Illinois.

Iowa stands out for rock-bottom living costs across housing, groceries, and services. However, job opportunities are concentrated in Des Moines, Cedar Rapids, and university towns, limiting options compared to Illinois’s diverse economy.

Job Markets and Economic Opportunities

Illinois’s job market strength is a major advantage when determining the best Midwest state to relocate to. Chicago alone offers more Fortune 500 headquarters than most Midwest states combined. The metro area’s economy spans finance, technology, healthcare, manufacturing, logistics, and professional services.

Illinois compared to Michigan Indiana Ohio in employment shows Illinois with the most diverse, robust job market. Michigan’s economy heavily weights automotive and manufacturing, making it vulnerable to industry cycles. Indiana similarly concentrates in manufacturing, though Indianapolis has diversified into healthcare and technology. Ohio’s economy is more balanced across Cleveland (healthcare), Columbus (government, education, logistics), and Cincinnati (consumer goods, finance).

Moving to Illinois or Wisconsin for career advancement typically favors Illinois unless you’re in specific industries. Milwaukee offers manufacturing, brewing, and healthcare opportunities, while Madison excels in government, education, and emerging tech. However, Chicago’s sheer size creates more opportunities across virtually every field.

Minnesota’s Twin Cities rival Chicago for Midwest job market strength. Minneapolis-St. Paul hosts major corporations, strong healthcare systems, and growing technology sectors. For many professionals, Minnesota and Illinois represent the region’s top two employment markets.

Remote work has altered calculations for job seekers. If you can work remotely for Illinois-based employers while living elsewhere, you might capture Illinois salaries with lower Midwest costs. However, many major employers now adjust salaries based on employee location, reducing this advantage.

Tax Burden Comparison

Taxes significantly impact the Illinois vs other Midwest states comparison. Illinois’s tax reputation is poor, though reality is nuanced. The state’s 4.95% flat income tax sits in the middle among Midwest states. Michigan (4.25%), Indiana (3.15%), and Ohio (varying by locality) have lower income taxes, while Wisconsin (3.54-7.65% progressive) and Minnesota (5.35-9.85% progressive) can exceed Illinois depending on income level.

Property taxes tell a different story. Illinois ranks second-highest nationally in property taxes, with effective rates around 2.08% and Chicago-area rates often exceeding 2.5%. This dramatically impacts homeowners. Indiana (0.81%), Ohio (1.36%), Missouri (0.93%), Michigan (1.36%), and Iowa (1.50%) all substantially undercut Illinois. Only Wisconsin (1.68%) approaches Illinois territory.

Sales taxes in Illinois, particularly Chicago’s 10.25% combined rate, rank among the nation’s highest. Most Midwest states hover around 6-7% for combined state and local sales taxes.

However, Illinois offers the homestead exemption reducing assessed home values for primary residences, providing meaningful property tax relief. The state also doesn’t tax retirement income—Social Security, pensions, and retirement account withdrawals are exempt, making Illinois surprisingly attractive for retirees despite high property taxes.

When evaluating Illinois vs Missouri cost of living from a tax perspective, Missouri’s lower property taxes and absence of state tax in many municipalities provide clear advantages. However, Missouri does tax Social Security benefits above certain income thresholds, while Illinois doesn’t.

Quality of Life and Livability

Beyond finances, quality of life factors influence the best Midwest state to relocate to decision. Illinois offers cultural richness unmatched in the Midwest outside of Minnesota. Chicago’s world-class museums, theater scene, music venues, professional sports, and dining rival any American city. The city’s lakefront, parks, and architecture provide urban beauty rare in the heartland.

Moving to Illinois or Wisconsin for outdoor recreation favors Wisconsin. The state’s forests, lakes, and outdoor culture attract nature enthusiasts. However, Illinois offers surprising outdoor opportunities—extensive forest preserves, the Mississippi River corridor, Shawnee National Forest, and Lake Michigan access.

Climate similarities unite Midwest states—cold winters, humid summers, and tornado risk. Illinois winters are harsh but not as brutal as Wisconsin, Minnesota, or Michigan’s Upper Peninsula. Southern Illinois enjoys notably milder winters than Chicago.

Education quality varies within states more than between them. Illinois boasts excellent suburban school districts (Naperville, Hinsdale, New Trier) alongside struggling urban schools. This pattern repeats across Midwest states—research specific districts rather than relying on state-level averages.

Healthcare access in Illinois benefits from Chicago’s concentration of top hospitals and medical centers—Northwestern, University of Chicago, Rush, and others rank nationally. Cleveland Clinic gives Ohio similar advantages, while other Midwest states have strong regional medical centers but fewer nationally-ranked facilities.

Cultural and Social Environment

Illinois’s diversity stands out in Midwest comparisons. Chicago’s international population, diverse neighborhoods, and cultural variety exceed most Midwest cities. You’ll find authentic cuisine from every corner of the globe, cultural festivals year-round, and communities from every background.

Illinois compared to Michigan Indiana Ohio shows more urban sophistication in Chicago versus Detroit, Indianapolis, Columbus, or Cleveland. This isn’t necessarily better or worse—it depends on your preferences. Some people thrive in Chicago’s density and diversity, while others prefer smaller Midwest cities’ more intimate, slower-paced environments.

Political culture varies significantly. Illinois and Minnesota lean Democratic, particularly in urban areas. Indiana and Missouri tilt Republican, especially outside major cities. Wisconsin, Michigan, and Ohio function as genuine swing states with mixed political environments. Your political alignment might influence comfort levels in different states.

Transportation and Accessibility

Illinois’s central location provides excellent connectivity. Chicago’s O’Hare and Midway airports offer more direct flights than any Midwest hub except possibly Minneapolis-St. Paul. Interstate highways radiate from Chicago, and Amtrak service connects the state nationally.

Chicago’s public transit—CTA trains and buses plus Metra commuter rail—is the Midwest’s most extensive. This allows car-free living impossible in most Midwest cities. Milwaukee, Minneapolis, and Cleveland have transit systems, but they’re less comprehensive.

For drivers, Illinois’s toll roads around Chicago create ongoing expenses. Indiana, Ohio, and other Midwest states have fewer tolls, though some major routes require payment.

Making Your Decision

Determining the best Midwest state to relocate to depends entirely on your priorities and circumstances. Illinois vs other Midwest states comparisons reveal clear patterns:

Choose Illinois if you prioritize diverse job markets and career advancement opportunities, world-class cultural amenities and urban sophistication, public transit and car-free living options, international diversity and cosmopolitan environment, or you’re retiring and value the retirement income tax exemption.

Consider alternatives if you prioritize lowest possible cost of living and property taxes (Indiana, Iowa, Missouri), outdoor recreation and natural beauty (Wisconsin, Minnesota, Michigan), smaller city environments with strong job markets (Columbus, Minneapolis, Indianapolis), or manufacturing and automotive industry opportunities (Michigan, Ohio, Indiana).

Moving to Illinois or Wisconsin often comes down to urban versus outdoor lifestyle preferences. Wisconsin offers superior natural amenities and outdoor culture, while Illinois provides stronger job markets and cultural sophistication.

Illinois vs Missouri cost of living favors Missouri for pure affordability, but Illinois counters with better job opportunities and higher average incomes that can offset cost differences.

Illinois compared to Michigan Indiana Ohio shows trade-offs across every category. Michigan offers automotive industry strength and Great Lakes beauty. Indiana provides rock-bottom costs and manufacturing jobs. Ohio balances affordability with decent-sized job markets in multiple cities.

The Illinois Advantage

This Midwest relocation guide Illinois ultimately shows the Prairie State as a strong Midwest choice despite legitimate drawbacks. High property taxes and challenging governance create real concerns, but Chicago’s world-class status, diverse economy, cultural richness, and retirement tax benefits provide compelling advantages.

Illinois rewards those who value urban amenities, career opportunities, and cultural diversity over lowest-cost living. The state suits ambitious professionals, retirees seeking culture with tax-friendly retirement income treatment, families wanting access to top-tier healthcare and education, and those who prefer cosmopolitan environments.

For others prioritizing minimal taxes, outdoor recreation, or smaller-city living, Wisconsin, Indiana, Minnesota, or other Midwest states might better match their needs. There’s no universally “best” Midwest state—only the best state for your specific circumstances, values, and priorities.

Whatever you decide, understanding these comparisons helps you choose with confidence, knowing you’ve weighed Illinois’s advantages and disadvantages against regional alternatives. The Midwest offers genuine quality of life across multiple states—your task is finding which environment helps you thrive.