What Is the Average Income in Illinois?

Understanding average income in Illinois is important for individuals considering relocation, career planning, or economic insight. The term “average income” can be interpreted in various ways, making it important to clarify specific metrics. A clear perspective on income levels is a foundational step for financial planning and informed decisions about one’s economic future within the state.

Understanding Income Metrics in Illinois

When discussing “average income,” it is important to distinguish between different statistical measures, as each provides a unique perspective on the financial well-being of a population. Mean income, often referred to as the arithmetic average, is calculated by summing all incomes and dividing by the number of income earners or households. This measure can be significantly skewed by a few extremely high earners, potentially presenting an inflated view of typical income levels.

In contrast, median income represents the midpoint of all incomes, where half of the earners or households fall above this figure and half fall below. This metric is generally considered a more accurate reflection of the typical income for the general population because it is not as heavily influenced by outliers at the extreme ends of the income spectrum.

Income data is typically categorized as either individual income or household income, each serving a different analytical purpose. Individual income refers to the earnings of a single person, regardless of their living situation or family structure. This metric is useful for assessing personal earning potential. Conversely, household income encompasses the combined earnings of all individuals aged 15 and older residing in the same housing unit, whether they are related or not.

The distinction between individual and household income is critical for understanding financial capacity. Household income provides a broader picture of a family’s or cohabiting group’s financial resources, which is more relevant for assessing overall living standards and economic stability. Choosing the appropriate metric depends on the specific question being asked, such as evaluating an individual’s earning capacity versus understanding the collective financial strength of a residential unit.

Current Income Figures and Economic Context

Recent data for Illinois provides insight into the state’s income landscape through various metrics. The median household income in Illinois was $84,926 as of 2022. For individuals, the median personal income stood at $41,404 in 2022. These figures reflect the earnings of a typical household and individual within the state during that period.

Examining mean income figures offers a different perspective, often higher due to the influence of high earners. The average (mean) household income in Illinois was approximately $115,027 in 2022. Meanwhile, the average (mean) personal income was about $62,176 in the same year. These statistics, primarily derived from official sources like the U.S. Census Bureau, provide a snapshot of the state’s economic standing.

Illinois’s economy is diverse, contributing to these income levels through several major industries. The state is a significant hub for finance, insurance, and real estate, particularly in the Chicago metropolitan area. Manufacturing also plays a substantial role, with sectors ranging from food processing to machinery production. Additionally, Illinois has a strong presence in professional and business services, healthcare, and education.

The overall employment trends in these sectors heavily influence the state’s income figures. Stable employment and growth in high-paying industries can drive up both median and mean income levels. Conversely, shifts in the job market, such as automation or industry decline, can impact earning potential. The robust and varied economic base of Illinois helps support its income averages.

Disparities and Influencing Factors within Illinois

Income levels in Illinois exhibit significant variations influenced by geographic location, demographic characteristics, and the prevailing cost of living. Geographic disparities are particularly pronounced, with the Chicago metropolitan area often reporting substantially higher average incomes compared to more rural parts of the state. This difference is largely due to the concentration of high-paying industries like finance, technology, and corporate headquarters in urban centers, which offer more lucrative job opportunities and attract a skilled workforce. The higher cost of living in these urban areas, however, can offset some of the nominal income advantages.

Demographic factors play a substantial role in shaping individual earning potential across Illinois. Education level is a primary determinant, with individuals holding bachelor’s degrees or advanced degrees typically earning significantly more than those with only a high school diploma. For example, in 2022, individuals with a bachelor’s degree in Illinois had an average income of $88,000, while those with a high school diploma averaged $40,000. This correlation underscores the long-term financial benefits of higher education and specialized training.

Occupation and industry also heavily influence income variations throughout the state. Professions in sectors such as information technology, healthcare, and finance generally command higher salaries than those in hospitality or retail, regardless of location. The prevalence of certain industries in specific regions of Illinois means that income levels can differ based on the dominant economic activities. For instance, areas reliant on agriculture or traditional manufacturing may have different income profiles compared to regions with a strong presence of professional services.

Age is another demographic factor impacting income, as earning potential typically increases with experience and career progression. Younger workers entering the workforce generally start at lower income levels, which tend to rise as they gain skills and seniority. This trend continues through mid-career before potentially stabilizing or declining slightly closer to retirement. The real value of income is also significantly affected by the cost of living, which varies widely across Illinois. High housing costs, transportation expenses, and local taxes in metropolitan areas can diminish the purchasing power of a seemingly higher income, making a lower nominal income in a less expensive rural area potentially more valuable in terms of disposable income.