Quick answer
Iowa has lower average 1BR rent ($1,150/mo vs $1,850/mo). State income tax: Iowa (4.82%) vs Illinois (4.95%) — on a $120K salary that's $180/year difference.
State Comparison · 2026
Illinois vs Iowa
Side-by-side on state income tax, rent, home prices, climate, and top metros — with specific dollar numbers for every claim.
Last updated: April 23, 2026
Illinois vs Iowa at a Glance
| Metric | Illinois | Iowa |
|---|---|---|
| Avg 1BR rent (major metros) | $1,850 | $1,150 ✓ |
| Avg median home price | $340K | $245K ✓ |
| Cheapest city | Chicago ($1,850) | Des Moines ($1,150) ✓ |
| Priciest city | Chicago ($1,850) | Des Moines ($1,150) |
| State income tax | 4.95% | 4.82% ✓ |
| Avg walkability | 78/100 ✓ | 45/100 |
| Cities tracked | 1 | 1 |
✓ marks the lower or more favorable value. Averages use the major metros we track in each state.
State Income Tax: Real Savings
What the rate gap actually looks like in your paycheck. Lower rate: Iowa (4.82%).
Salary $80K
$120
/year saved in Iowa
Salary $120K
$180
/year saved in Iowa
Salary $200K
$300
/year saved in Iowa
Calculation uses the effective state rate difference × gross salary. Doesn't include property tax, sales tax, or federal impact.
Deep Dive: Each State
Illinois (IL)
Tax reality
Illinois has a flat 4.95% state income tax (moderate) — but property taxes are among the highest in the US, averaging 2.1% effective. On a $350K Chicago home that's $7,400/year. Combined tax burden is higher than it looks. The state's pension underfunding creates long-term fiscal risk for homeowners.
Top cities (1 tracked)
Top drawbacks
- ✕Property tax is brutal — Cook County averages 2.3% effective. On a $500K home, that's $11,500/year. Homeowners feel this every month.
- ✕Chicago winters are genuinely cold. Lake-effect snow, mid-December through March subzero streaks, and winds off Lake Michigan can make it feel -20°F. This is the biggest filter for people considering moving here.
- ✕The state fiscal situation (pension debt, budget pressures) drives ongoing policy uncertainty — property tax, sales tax, and various fees continue to drift upward.
Iowa (IA)
Tax reality
Flat income tax of 4.82% (being phased down toward 4.0% by 2026). Property tax averages 1.57% but varies widely by county (some rural counties near 2.0%). Effective tax rate on $200k income is ~$12,500 annually—among lowest in Midwest.
Top cities (1 tracked)
Top drawbacks
- ✕Winters are brutal: -20°F wind chills common, snow removal costs $1,000+/year, ice storm damage frequent.
- ✕Severe thunderstorms and tornadoes (spring/early summer). 2020 Derecho caused $11B+ in damage—most expensive natural disaster in state history.
- ✕Rural depopulation: 2010–2020 lost 30+ counties to population decline. Main streets in rural towns are shuttered.
Frequently Asked Questions
Is Illinois or Iowa cheaper to live in?
Iowa has lower average 1BR rent across major metros — $1,150/mo vs $1,850/mo in Illinois, a $700/mo difference. Home prices: Iowa median is $245K vs $340K.
Illinois vs Iowa: which has lower state income tax?
Iowa has lower state income tax (4.82%) vs 4.95% in Illinois. On an $80K salary that's $120/year in savings. On $200K, savings grow to $300/year.
Should I move from Illinois to Iowa?
Illinois has a flat 4.95% state income tax (moderate) — but property taxes are among the highest in the US, averaging 2.1% effective. On a $350K Chicago home that's $7,400/year. Combined tax burden is higher than it looks. The state's pension underfunding creates long-term fiscal risk for homeowners.
What are the best cities in Illinois vs Iowa?
Illinois's largest metros include Chicago. Iowa's largest metros include Des Moines. Cost of living varies significantly within each state — a Illinois suburb can be 40% cheaper than its flagship city, and vice versa.