State Comparison
Illinois vs Iowa
Side-by-side comparison of 16 financial metrics using documented public datasets and estimates, with sources listed below.
Overall Score
Cost of Living
Housing
Taxes
Income & Employment
Business
Insurance & Living
Key Takeaways
- 1
Iowa leads in 12 of 16 financial metrics, making it the more favorable state overall.
- 2
Housing: Median home prices are $299,000 in Illinois vs $241,000 in Iowa — a $58,000 difference.
- 3
Taxes: Illinois has a 4.95% top income tax rate while Iowa has a 3.8% top rate. Property tax rates are 1.88% vs 1.33%.
- 4
Cost of Living: Illinois's index is 95.1 and Iowa's is 88.6 (national average = 100).
Run the Numbers
Use our free calculators with real Illinois and Iowa data to model your specific scenario.
Frequently Asked Questions
Is Illinois or Iowa more affordable?
Iowa has a lower cost of living index (88.6) compared to Illinois (95.1), where 100 is the national average. However, affordability depends on your specific situation — compare housing, taxes, and income together for a complete picture.
Which state has lower taxes — Illinois or Iowa?
It depends on what you earn, spend, and own — the three rates below apply to different bases (income, purchases, and home value), so they cannot be added into a single burden figure. On the headline rates alone, Iowa is lower on more of them. Illinois has a 4.95% top income tax, 6.25% state sales tax, and a 1.88% effective property tax rate. Iowa has a 3.8% top income tax, 6% state sales tax, and a 1.33% effective property tax rate.
What are housing costs in Illinois vs Iowa?
The typical home value in Illinois is $299,000 compared to $241,000 in Iowa (Zillow Home Value Index, June 2026). For renters, HUD's FY2026 Fair Market Rent for a 2-bedroom unit — the 40th-percentile gross rent, not an average — is $1,579/month in Illinois vs $1,112/month in Iowa.
Which state is better for starting a business — Illinois or Iowa?
LLC filing costs are $150 in Illinois vs $50 in Iowa, with annual fees of $75 and $30 respectively. Illinois's 4.95% top tax rate compared to Iowa's 3.8% rate may also factor into your decision.
Should I move from Illinois to Iowa?
It depends on your priorities. Iowa wins in 12 of 16 metrics we compared. Use our free calculators to model your specific financial scenario — including salary, property tax, and cost of living for each state.
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Related Comparisons
Comparing Illinois and Iowa
When deciding between living in Illinois or Iowa, the financial picture goes beyond just one metric. This comparison analyzes 16 key financial indicators drawn from the U.S. Census Bureau (American Community Survey), the Tax Foundation, HUD Fair Market Rents, Zillow's Home Value Index, the NAIC's insurance databases, the U.S. Department of Labor, C2ER's Cost of Living Index, and state agencies, to give you a comprehensive overview.
Illinois (IL) has a median household income of $83,211 with a cost of living index of 95.1. Iowa (IA) has a median household income of $75,501 with a cost of living index of 88.6. Income figures are Census ACS 1-year estimates (table B19013, 2024); the cost-of-living index is C2ER's Q1 2026 survey via MERIC, where 100 is the national average of surveyed cities.
These numbers are estimates. Individual circumstances vary based on location within each state, family size, profession, and lifestyle. Use our free Illinois calculator or Iowa calculator to model your specific financial scenario.
Sources per metric are named in each row's note above. Last reviewed . Some values are estimates; consult a qualified professional for financial advice.