State comparison
Illinois vs New Jersey: which state is better to live in?
Illinois costs a median household about $4,300 a year less in state and local taxes than New Jersey, mostly because property tax on a median home runs $4,758 a year against $10,650 in New Jersey.
Illinois
High tax burden · COL index 92
Wins 7 categories
New Jersey
High tax burden · COL index 121
Wins 8 categories
Taxes: Illinois vs New Jersey
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. New Jersey has a graduated income tax topping out at 10.75%, which works out to 3.5% on a median income of $74,580, or $2,628 a year. New Jersey wins on income tax at 2026 rates.
Property tax is 1.73% of home value a year in Illinois and 2.13% in New Jersey (Tax Foundation, 2023); on each state's median home that is $4,758 against $10,650, so Illinois has the lower rate.
Combined state and local sales tax averages 8.82% in Illinois and 6.60% in New Jersey; New Jersey 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, $14,755 in New Jersey. Illinois is cheaper on total state and local tax.
Housing and cost of living
Illinois's cost of living index is 92 and New Jersey's is 121, where 100 is the national average; Illinois is about 32% cheaper day to day.
The median home costs $275K in Illinois and $500K in New Jersey (Zillow, 2024), a $225K gap in Illinois's favor. A two-bedroom rents for about $1,400 a month in Illinois and $2,200 in New Jersey.
Home insurance averages $1,900 a year in Illinois and $1,400 in New Jersey, so New Jersey is cheaper to insure.
Safety
Violent crime runs 413 incidents per 100,000 residents in Illinois and 213 in New Jersey (FBI Crime Data Explorer, 2023); New Jersey is the safer state by that measure, with a rate 94% lower. Property crime is 1,666 per 100,000 in Illinois against 1,368 in New Jersey, again favoring New Jersey.
Health
Life expectancy is 77.2 years in Illinois and 79 in New Jersey (County Health Rankings, 2024), a 1.8-year edge for New Jersey. The Commonwealth Fund's 2023 scorecard ranks Illinois's health system 20th of 50 and New Jersey's 19th, so New Jersey scores better on care.
7.4% of Illinois residents have no health insurance against 6.8% in New Jersey, which favors New Jersey. Both states expanded Medicaid.
Schools
Education Week's 2023 Quality Counts report ranks Illinois's K-12 schools 16th in the country and New Jersey's 2nd, 14 places apart in New Jersey'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 New Jersey went to Harris by 6 points.
Illinois has shall-issue carry permits and a Giffords gun-law grade of A; New Jersey has may-issue carry permits and a grade of A.
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 $15.13 in New Jersey.
Climate and risk
Natural disaster risk is moderate in Illinois (tornado, flood, blizzard) and moderate in New Jersey (hurricane, flood, nor-easter). Annual average air quality index is 45 in Illinois and 35 in New Jersey (under 50 is good), favoring New Jersey.
Tax figures use a household earning the national median income and owning each state's median home, at rates in force as of 2026-09-04. The table below has every number.
Taxes
Housing & Cost of Living
Crime & Safety
Healthcare
Education
Childcare
Utilities & Daily Costs
Social Policy
Category wins
7
Illinois
8
New Jersey
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Score For My Profile →Questions people ask
Is Illinois or New Jersey better to live in?
It depends on what you weigh most. Illinois on taxes ($10,423 a year for a median household against $14,755); Illinois on everyday costs (index 92 against 121); New Jersey on safety (213 violent crimes per 100,000 against 413); New Jersey on schools (ranked 2nd against 16th).
Which is cheaper, Illinois or New Jersey?
Illinois is cheaper day to day: cost of living index 92 against 121. The median home is $275K in Illinois and $500K in New Jersey (2024). On state and local taxes Illinois saves a median household about $4,300 a year.
Does Illinois or New Jersey have lower taxes?
Illinois. 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 $14,755 in New Jersey ($2,628 income tax, $10,650 property tax on the median home and $1,477 in sales tax), at 2026 rates.
Which is safer, Illinois or New Jersey?
New Jersey, on the FBI's 2023 figures. Violent crime is 413 per 100,000 residents in Illinois and 213 in New Jersey; property crime is 1,666 against 1,368.
Which has better schools, Illinois or New Jersey?
New Jersey. Education Week's 2023 Quality Counts report ranks Illinois 16th of 50 for K-12 and New Jersey 2nd.
Is Illinois or New Jersey better for retirees?
Illinois is friendlier to retirees on paper. Illinois does not tax Social Security, exempts pensions and has an estate tax; New Jersey does not tax Social Security, partly exempts pensions and has an inheritance tax. Property tax on a median home is $4,758 a year in Illinois and $10,650 in New Jersey.