Quick answer
New Mexico has lower average 1BR rent ($1,050/mo vs $1,850/mo). State income tax: New Mexico (4.9%) vs Illinois (4.95%) — on a $120K salary that's $60/year difference.
State Comparison · 2026
Illinois vs New Mexico
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 New Mexico at a Glance
| Metric | Illinois | New Mexico |
|---|---|---|
| Avg 1BR rent (major metros) | $1,850 | $1,050 ✓ |
| Avg median home price | $340K | $285K ✓ |
| Cheapest city | Chicago ($1,850) | Albuquerque ($1,050) ✓ |
| Priciest city | Chicago ($1,850) | Albuquerque ($1,050) |
| State income tax | 4.95% | 4.9% ✓ |
| Avg walkability | 78/100 ✓ | 42/100 |
| 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: New Mexico (4.9%).
Salary $80K
$40
/year saved in New Mexico
Salary $120K
$60
/year saved in New Mexico
Salary $200K
$100
/year saved in New Mexico
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.
New Mexico (NM)
Tax reality
New Mexico has a progressive state income tax up to 5.9%. Property tax is low (~0.8% effective). Sales/gross receipts tax 5.125% state + local to 7-8%. No estate tax. Overall moderate tax burden.
Top cities (1 tracked)
Top drawbacks
- ✕New Mexico ranks near the bottom of US states on multiple metrics — poverty rate, child welfare indicators, educational attainment, and violent crime. Public services are underfunded.
- ✕Albuquerque has real public safety concerns — the city has consistently been among the highest-crime per-capita major cities in the US over the past decade.
- ✕Public schools rank near the bottom of US states. Wealthy areas have private schools; public schools in most districts struggle.
Frequently Asked Questions
Is Illinois or New Mexico cheaper to live in?
New Mexico has lower average 1BR rent across major metros — $1,050/mo vs $1,850/mo in Illinois, a $800/mo difference. Home prices: New Mexico median is $285K vs $340K.
Illinois vs New Mexico: which has lower state income tax?
New Mexico has lower state income tax (4.9%) vs 4.95% in Illinois. On an $80K salary that's $40/year in savings. On $200K, savings grow to $100/year.
Should I move from Illinois to New Mexico?
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 New Mexico?
Illinois's largest metros include Chicago. New Mexico's largest metros include Albuquerque. Cost of living varies significantly within each state — a Illinois suburb can be 40% cheaper than its flagship city, and vice versa.