State comparison
Illinois vs Michigan: which state is better to live in?
Michigan costs a median household about $2,600 a year less in state and local taxes than Illinois, mostly because property tax on a median home runs $3,300 a year against $4,758 in Illinois.
Illinois
High tax burden · COL index 92
Wins 5 categories
Michigan
Moderate tax burden · COL index 88
Wins 11 categories
Taxes: Illinois vs Michigan
Illinois has a flat 4.95% income tax, which works out to 5.0% on a median income of $74,580, or $3,692 a year. Michigan has a flat 4.25% income tax, which works out to 4.3% on a median income of $74,580, or $3,170 a year. Michigan wins on income tax at 2026 rates.
Property tax is 1.73% of home value a year in Illinois and 1.32% in Michigan (Tax Foundation, 2023); on each state's median home that is $4,758 against $3,300, so Michigan has the lower rate.
Combined state and local sales tax averages 8.82% in Illinois and 6.00% in Michigan; Michigan is lower.
Add it up for a household earning $74,580 (the 2022 national median) and owning the median home: $10,423 a year in Illinois, $7,812 in Michigan. Michigan is cheaper on total state and local tax.
Housing and cost of living
Illinois's cost of living index is 92 and Michigan's is 88, where 100 is the national average; Michigan is about 5% cheaper day to day.
The median home costs $275K in Illinois and $250K in Michigan (Zillow, 2024), a $25K gap in Michigan's favor. A two-bedroom rents for about $1,400 a month in Illinois and $1,150 in Michigan.
Home insurance averages $1,900 a year in Illinois and $1,100 in Michigan, so Michigan is cheaper to insure.
Safety
Violent crime runs 413 incidents per 100,000 residents in Illinois and 445 in Michigan (FBI Crime Data Explorer, 2023); Illinois is the safer state by that measure, with a rate 8% lower. Property crime is 1,666 per 100,000 in Illinois against 1,670 in Michigan, again favoring Illinois.
Health
Life expectancy is 77.2 years in Illinois and 75.7 in Michigan (County Health Rankings, 2024), a 1.5-year edge for Illinois. The Commonwealth Fund's 2023 scorecard ranks Illinois's health system 20th of 50 and Michigan's 25th, so Illinois scores better on care.
7.4% of Illinois residents have no health insurance against 5.9% in Michigan, which favors Michigan. Both states expanded Medicaid.
Schools
Education Week's 2023 Quality Counts report ranks Illinois's K-12 schools 16th in the country and Michigan's 38th, 22 places apart in Illinois's favor. Neither state runs a school-choice voucher program.
Laws and politics
In the 2024 presidential election Illinois went to Harris by 14 points and Michigan was a swing state decided by 2 points.
Illinois has shall-issue carry permits and a Giffords gun-law grade of A; Michigan has shall-issue carry permits and a grade of C+, so Illinois regulates guns more tightly and Michigan is the friendlier state for gun owners.
Abortion is protected by state law in both states, and marijuana is legal for adults in both as of 2026. The minimum wage is $14.00 an hour in Illinois and $10.33 in Michigan.
Climate and risk
Natural disaster risk is moderate in Illinois (tornado, flood, blizzard) and moderate in Michigan (blizzard, flood, tornado). Annual average air quality index is 45 in Illinois and 42 in Michigan (under 50 is good), favoring Michigan.
Tax figures use a household earning the national median income and owning each state's median home, at tax year 2026 rates, last checked against state sources on 2026-09-14. The table below has every number.
Taxes
Housing & Cost of Living
Crime & Safety
Healthcare
Education
Childcare
Utilities & Daily Costs
Social Policy
Category wins
5
Illinois
11
Michigan
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Score For My Profile →Questions people ask
Is Illinois or Michigan better to live in?
It depends on what you weigh most. Michigan on taxes ($7,812 a year for a median household against $10,423); Michigan on everyday costs (index 88 against 92); Illinois on safety (413 violent crimes per 100,000 against 445); Illinois on schools (ranked 16th against 38th).
Which is cheaper, Illinois or Michigan?
Michigan is cheaper day to day: cost of living index 88 against 92. The median home is $275K in Illinois and $250K in Michigan (2024). On state and local taxes Michigan saves a median household about $2,600 a year.
Does Illinois or Michigan have lower taxes?
Michigan. A household earning $74,580 pays about $10,423 a year in Illinois ($3,692 income tax, $4,758 property tax on the median home and $1,973 in sales tax) and $7,812 in Michigan ($3,170 income tax, $3,300 property tax on the median home and $1,342 in sales tax), at 2026 rates.
Which is safer, Illinois or Michigan?
Illinois, on the FBI's 2023 figures. Violent crime is 413 per 100,000 residents in Illinois and 445 in Michigan; property crime is 1,666 against 1,670.
Which has better schools, Illinois or Michigan?
Illinois. Education Week's 2023 Quality Counts report ranks Illinois 16th of 50 for K-12 and Michigan 38th.
Is Illinois or Michigan better for retirees?
Illinois is friendlier to retirees on paper. Illinois does not tax Social Security, exempts pensions and has an estate tax; Michigan taxes Social Security, partly exempts pensions and has no estate or inheritance tax. Property tax on a median home is $4,758 a year in Illinois and $3,300 in Michigan.