Best Cities for Small Business in Illinois

Illinois ranks #45 out of 50 for small business owners and entrepreneurs, presenting some challenges for business formation and growth. The state's fiscal health score of 22/100 raises questions about the state's long-term fiscal trajectory, which can affect tax policy and regulatory stability.

Tax policy directly impacts the bottom line. Illinois's overall tax burden is 10.22% of income, with a 4.95% income tax rate that applies to both personal and pass-through business income. The 8.96% combined sales tax rate is on the higher side and worth factoring into pricing strategy. The economic environment (score: 39/100) with 4.6% unemployment shows healthy labor availability.

Population is roughly stable, meaning market growth will depend on capturing share rather than riding demographic expansion. The education system (score: 71/100) produces a reasonably well-prepared workforce. Housing at $286,000 median helps attract and retain employees who can afford to live nearby.