Illinois vs Missouri: Which State Keeps More Money in Your Pocket?
VSDetailed comparison of tax rates, cost of living, and quality of life
📌 At $60,000, the difference between Illinois's 4.95% and Missouri's 5.40% comes to roughly $270 per year. Missouri makes up ground with central location, which draws considerable interest from small business owners. While urban professionals tend to favor Illinois for the tax break, the decision hinges on how much weight you put on quality of life.
The spread between Illinois (4.95%) and Missouri (5.40%) creates noticeable paycheck differences. At $60,000, you're facing roughly $270 in annual tax variance. How much that matters depends on your broader financial picture.
🔑 Key Differences
- **State income tax**: Illinois at 4.95% vs Missouri at 5.40%
- **Annual savings** (on $60,000): Illinois saves you ~$270
- **Tax system**: Both use progressive brackets
- **Deductions**: Standard federal deductions apply, state variations exist
- **Local taxes**: Check your specific county/city as rates vary within states
Tax Comparison
| Tax Type | Illinois | Missouri |
|---|---|---|
| State Income Tax | 4.95% | 1.5% - 5.4% |
| 💰 On $40,000 Salary |
State Tax: $1,980
Take Home: $38,020
|
State Tax: $1,380
Take Home: $38,620
+$600
|
| 💰 On $60,000 Salary |
State Tax: $2,970
Take Home: $57,030
|
State Tax: $2,070
Take Home: $57,930
+$900
|
| 💰 On $100,000 Salary |
State Tax: $4,950
Take Home: $95,050
|
State Tax: $3,450
Take Home: $96,550
+$1,500
|
| Cost of Living | Illinois costs split dramatically between Chicago and downstate. Chicago proper commands high prices - rent for decent apartments often runs $1,500-2,500, with home prices in desirable neighborhoods exceeding $400,000. Suburbs provide more moderate housing but property taxes can reach $8,000-12,000 annually even for modest homes. Downstate cities like Springfield, Champaign, and Rockford offer genuine Midwest affordability with housing costs 40-60% below Chicago levels. Sales tax reaches 10.25% in Chicago, among the nation's highest. Utilities cost more during brutal winters. The cost division means identical salaries deliver vastly different lifestyles depending on location within Illinois. | Missouri consistently ranks among America's most affordable states. St. Louis and Kansas City offer genuine metropolitan amenities - professional sports, cultural institutions, diverse dining - while maintaining housing costs 40-50% below expensive coastal markets. Quality homes in good neighborhoods typically sell for $200,000-300,000. Springfield, Columbia, and smaller cities provide even better value. Property taxes stay moderate statewide. Groceries, utilities, and services all cost substantially less than national averages. The dramatic affordability means moderate salaries support comfortable middle-class lifestyles that would require much higher incomes in expensive states. |
Pros & Cons
Illinois
✓ Advantages
- Flat 4.95% state income tax is simple and predictable
- Strong job market in Chicago across multiple industries
- Central US location provides excellent transportation access
- Downstate areas offer affordable cost of living
- Major universities and research institutions
⚠ Considerations
- Property taxes among highest nationally, especially near Chicago
- State faces significant financial challenges
- Sales tax reaches 10.25% in Chicago
- Cold winters with substantial heating costs
- Chicago's high costs offset lower expenses elsewhere
Missouri
✓ Advantages
- Moderate state income tax (max 5.3%)
- Very affordable cost of living
- Affordable housing throughout most areas
- Central location with good access
- No state tax on Social Security benefits
⚠ Considerations
- Some cities have additional local taxes
- Hot humid summers
- Some areas face economic challenges
- Sales tax varies widely by locality
- Limited public transportation
Bottom Line
Tax-wise, Illinois wins with about $270 annual savings at $60,000. Missouri maintains pull through central location, which resonates particularly with small business owners. Recent trends show urban professionals moving to Illinois, though Missouri continues drawing people who prioritize {factor}.📢 Share This Comparison
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