Cost of Living in Lake Forest

Lake Forest's cost of living runs genuinely, substantially above both Illinois's statewide averages and the national average, driven by very high home values rather than an elevated tax rate.

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A real, substantial housing cost

Zillow's typical home value ran $1,014,876 (up 4.9% year-over-year), while Redfin's median sale price ran notably higher, around $1.4 million (June 2025) -- a real, disclosed spread between a value-index measure and an actual sale-price measure.

A genuinely disclosed property-tax nuance: a lower rate, a higher bill

Lake Forest's median effective property tax rate (1.87%) actually runs BELOW Illinois's own already-high statewide median (2.33%) -- yet its median annual dollar bill ($16,682) is among the highest documented in this project's Illinois buildout, because that lower rate applies against very high home values.

Illinois's statewide income tax structure applies identically

Illinois's real, flat 4.95% income tax on wages, and its full exemption of Social Security, pension, and 401(k)/IRA income, apply the same in Lake Forest as anywhere else in the state -- see illinois.js.

Key takeaways

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Last reviewed: 2026-08-25. Independent research; not financial, tax, or legal advice -- confirm current figures with a local professional before making a decision.