State comparison
Illinois vs New Mexico: which state is better to live in?
New Mexico costs a median household about $3,700 a year less in state and local taxes than Illinois, mostly because property tax on a median home runs $1,815 a year against $4,758 in Illinois.
Illinois
High tax burden · COL index 92
Wins 7 categories
New Mexico
Moderate tax burden · COL index 91
Wins 8 categories
Taxes: Illinois vs New Mexico
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 Mexico has a graduated income tax topping out at 5.9%, which works out to 4.2% on a median income of $74,580, or $3,112 a year. New Mexico wins on income tax at 2026 rates.
Property tax is 1.73% of home value a year in Illinois and 0.55% in New Mexico (Tax Foundation, 2023); on each state's median home that is $4,758 against $1,815, so New Mexico has the lower rate.
Combined state and local sales tax averages 8.82% in Illinois and 7.82% in New Mexico; New Mexico 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, $6,677 in New Mexico. New Mexico is cheaper on total state and local tax.
Housing and cost of living
Illinois's cost of living index is 92 and New Mexico's is 91, where 100 is the national average; New Mexico is about 1% cheaper day to day.
The median home costs $275K in Illinois and $330K in New Mexico (Zillow, 2024), a $55K gap in Illinois's favor. A two-bedroom rents for about $1,400 a month in Illinois and $1,250 in New Mexico.
Home insurance averages $1,900 a year in Illinois and $1,600 in New Mexico, so New Mexico is cheaper to insure.
Safety
Violent crime runs 413 incidents per 100,000 residents in Illinois and 778 in New Mexico (FBI Crime Data Explorer, 2023); Illinois is the safer state by that measure, with a rate 88% lower. Property crime is 1,666 per 100,000 in Illinois against 3,286 in New Mexico, again favoring Illinois.
Health
Life expectancy is 77.2 years in Illinois and 74.1 in New Mexico (County Health Rankings, 2024), a 3.1-year edge for Illinois. The Commonwealth Fund's 2023 scorecard ranks Illinois's health system 20th of 50 and New Mexico's 49th, so Illinois scores better on care.
7.4% of Illinois residents have no health insurance against 9.2% in New Mexico, which favors Illinois. Both states expanded Medicaid.
Schools
Education Week's 2023 Quality Counts report ranks Illinois's K-12 schools 16th in the country and New Mexico's 46th, 30 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 New Mexico went to Harris by 10 points.
Illinois has shall-issue carry permits and a Giffords gun-law grade of A; New Mexico has shall-issue carry permits and a grade of B-, so Illinois regulates guns more tightly and New Mexico 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 $12.00 in New Mexico.
Climate and risk
Natural disaster risk is moderate in Illinois (tornado, flood, blizzard) and high in New Mexico (wildfire, drought, flash-flood), so Illinois is the lower-risk state. Annual average air quality index is 45 in Illinois and 44 in New Mexico (under 50 is good), favoring New Mexico.
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
7
Illinois
8
New Mexico
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Score For My Profile →Questions people ask
Is Illinois or New Mexico better to live in?
It depends on what you weigh most. New Mexico on taxes ($6,677 a year for a median household against $10,423); New Mexico on everyday costs (index 91 against 92); Illinois on safety (413 violent crimes per 100,000 against 778); Illinois on schools (ranked 16th against 46th).
Which is cheaper, Illinois or New Mexico?
New Mexico is cheaper day to day: cost of living index 91 against 92. The median home is $275K in Illinois and $330K in New Mexico (2024). On state and local taxes New Mexico saves a median household about $3,700 a year.
Does Illinois or New Mexico have lower taxes?
New Mexico. 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 $6,677 in New Mexico ($3,112 income tax, $1,815 property tax on the median home and $1,750 in sales tax), at 2026 rates.
Which is safer, Illinois or New Mexico?
Illinois, on the FBI's 2023 figures. Violent crime is 413 per 100,000 residents in Illinois and 778 in New Mexico; property crime is 1,666 against 3,286.
Which has better schools, Illinois or New Mexico?
Illinois. Education Week's 2023 Quality Counts report ranks Illinois 16th of 50 for K-12 and New Mexico 46th.
Is Illinois or New Mexico better for retirees?
Both treat retirement income about the same. Illinois does not tax Social Security, exempts pensions and has an estate tax; New Mexico does not tax 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 $1,815 in New Mexico.