22. Illinois
Illinois often gets overshadowed by Chicago, but the state offers a lower-than-average cost of living—about 4% below the national average. With 12.6 million residents, including 2.1 million seniors, there’s a wide range of lifestyle options. The sales tax is 6.25%.
That said, Illinois, like Pennsylvania, is facing potential financial challenges. Tax increases could be on the horizon, so retirees might want to plan with that in mind. Still, it’s an appealing option if you enjoy a mix of city and countryside.
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