Is It Cheaper to Live in Illinois or Wisconsin?

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Cost of Living Comparison

Wisconsin is cheaper than Illinois. If you lived in Wisconsin instead of Illinois, you would:

  • pay less for restaurants.

Mississippi has the lowest cost of living in the United States. Expenses are nearly 17% less than the national average. Mississippi’s housing costs are the lowest in the nation.

Health Care is more affordable in Milwaukee than in Chicago.

Housing Costs and Taxes

Housing Costs:

  • Housing costs in Wisconsin are extremely affordable and nearly 15% below the national average.
  • Housing costs drop significantly in the central and northern parts of the state.

Taxes:

  • Wisconsin’s taxes are lower than Illinois’s taxes.
  • Illinois is 6.3% more expensive than Wisconsin.
  • Taxes in Chicago are 11.3% more expensive than in Sheboygan.
  • Wisconsin has agreements with Illinois, Indiana, Kentucky, and Michigan so residents working in Wisconsin don’t pay taxes there.
  • Illinois has an effective property tax rate of 2.05%, the highest in the Midwest.

Tax Specifics and Job Market

  • If living in Illinois with only W-2 wage income from Wisconsin, you only file a tax return in Illinois. Wisconsin will refund any state taxes withheld.
  • The Illinois flat income tax rate is 4.95%.
  • Wisconsin has a proud tradition of fiscal prudence, contributing to its lower deficit.
  • We are ranked last in the Midwest for job creation.

Living Wage and Comfortable Living

A family of 2 adults and 1 child requires $83,897 to reach a living wage in Tennessee. That’s almost 30% cheaper than Massachusetts where it takes $131,461 to reach a living wage.

Wisconsin’s cost of living is about 8% lower than the national average. A family of four could live comfortably in Wisconsin on a little over $4,000 a month or $48,000 per year. Goods and services in Wisconsin cost 7.9% less on average than nationwide.

To live comfortably in Wisconsin:

  • Minimum recommended annual income is $46,800 for a family.
  • Minimum recommended annual income is $33,200 for a single person.
  • Wisconsin’s cost of living index is 89.9, below the national average of 100.

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