What Is the Average Household Income in Illinois?
Explore the average household income in Illinois. Gain insight into the data, its definition, and the factors influencing economic well-being statewide.
Understanding household income provides valuable insight into the economic health and well-being of a region and its residents. For individuals, knowing average income figures can help assess financial standing or inform decisions about relocation and career opportunities. Policymakers and businesses also utilize this data to understand economic trends, develop targeted programs, and allocate resources effectively within communities. This information offers a clear picture of the financial landscape, reflecting the collective economic capacity of households.
Key Household Income Figures in Illinois
The most recent data from the U.S. Census Bureau’s American Community Survey indicates that the median household income in Illinois was $81,702 in 2023. This figure represents the midpoint of all household incomes, meaning half of the households in the state earned more than this amount, and half earned less. For comparison, the average, or mean, household income in Illinois for the same period was $112,993.
Median income is a more accurate representation of typical earnings than mean income. It is less affected by extremely high or low incomes, which can skew the average. Mean income, calculated by dividing total income by the number of households, can be inflated by a small number of very high earners.
Defining Household Income
A “household” encompasses all individuals residing in a single housing unit, regardless of whether they are related. This definition includes individuals aged 15 years and older who contribute to the total income. The U.S. Census Bureau collects data on various income sources to determine household income.
Household income includes a wide array of earnings. These include wages, salaries, commissions, bonuses, and tips. It also incorporates net income from self-employment after business expenses, and investment income like interest, dividends, and net rental income. Government transfers like Social Security benefits, Supplemental Security Income (SSI), public assistance, unemployment compensation, and various pensions are also included. Non-cash benefits, such as food stamps or health benefits, and one-time payments like inheritances or capital gains from asset sales, are generally excluded.
Influences on Income Levels Across Illinois
Household income levels in Illinois vary due to several factors. Geographic location plays a role, with urban centers, especially the Chicago metropolitan area, often showing higher incomes due to diverse job markets and higher costs of living. Rural regions may have different economic structures, impacting earning potential. Counties like DuPage, Kendall, and Lake consistently report higher median household incomes.
Education levels and occupational fields are strong determinants of earning potential. Individuals with higher educational attainment generally achieve greater income, with specific degree programs and industries influencing earning capacity. Illinois’s economy is diverse, with major industries like finance, insurance, real estate, and professional and business services contributing to the state’s Gross Domestic Product (GDP). Manufacturing is another substantial sector, providing jobs and labor income.
High-paying industries, such as securities, legal services, and pharmaceutical manufacturing, tend to concentrate wealth. Demographic factors like age also affect income, with residents aged 25 to 64 typically earning more than younger or older age groups.