Waukegan, IL: The 2026 Financial Bleed Report

If you are looking at the Cost of Living Index for Waukegan, which sits at 98.9, you are looking at a statistical lie. That number suggests you are paying roughly 1% less than the national average. It is a comforting, sanitized figure designed to get you to sign a lease. It is also dangerously incomplete. To live here without drowning in debt, you need to understand the specific mechanics of how your money will leave your wallet. The median household income is reported at $72,841, but for a single earner aiming for actual stability, you are looking at a baseline of roughly $40,062 just to keep the lights on and the car running. Anything less than that, and you are living on the edge of a financial emergency. This isn't about "comfort"—it's about solvency.

The Big Items

Let's talk about the two anchors that will drag down your bank account: housing and taxes. The first thing you need to realize about the Waukegan housing market is that the "average" rent is a myth designed to obscure the reality of the two-bedroom market. You are likely looking at a two-bedroom unit for around $1,280 a month. Why a two-bedroom? Because in Lake County, the one-bedroom inventory is often choked off by older stock that is either taken by long-term tenants or priced suspiciously high to force you into the larger unit. If you are renting, you are paying a premium for the flexibility, but you are building zero equity. The local market is "warm," but not boiling hot in a way that benefits the seller. It is a trap of mediocrity. You will face sticker shock when you realize that for that $1,280, you aren't getting luxury amenities; you are paying for proximity to the lake and the highway access.

If you decide to buy, the math gets ugly, fast. While specific median home data is fluctuating, the local trend is driven by a hidden killer: property taxes. In Illinois, property taxes are not a line item; they are a second mortgage. You should expect an effective property tax rate that hovers significantly above the national average, often bleeding you for 2.0% to 2.5% of the home's value annually. On a $300,000 home, that is an extra $6,000 a year baked into your monthly payment, or $500 a month that does not go toward your principal. You aren't getting a "bang for your buck" here; you are paying for the privilege of funding a broken pension system. The break-even point on buying vs. renting is stretched out to nearly a decade because the tax bleed is so severe.

Then there is the tax bite that hits you every paycheck. Illinois has a flat income tax rate of 4.95%. It sounds simple, but it is regressive. It hits the $40,062 earner just as hard as the millionaire, percentage-wise. When you combine that federal hit with the local tolls and the sales tax (which hovers around 8.0% to 9.0% depending on specific village districts), you are losing roughly 25% to 30% of your gross income to various government entities before you even buy a gallon of milk. You cannot escape the income tax, and you cannot escape the property tax if you own. It is a pincer movement on your cash flow.

Groceries and gas show some variance, but don't expect a massive discount. The baseline for a standard grocery run is roughly 5% to 8% higher than the Midwest average due to the cost of logistics and real estate for the stores themselves. Gas prices in Waukegan tend to track the Chicago metro average, which is notoriously volatile. You will pay at the pump, and you will pay at the register. The 15.87 cents per kWh electric rate is actually a rare win—it is competitive. However, that is a drop in the bucket compared to the rest of the bleed.

Hidden 'Gotcha' Costs

This is where the budget goes to die. You need to budget for the things the averages ignore.

• The Toll Road Trap: Living in Waukegan without an I-PASS is financial suicide. If you commute south toward Chicago or even just to Northbrook, you are looking at a round trip that can easily cost $5.00 to $10.00 a day in tolls. That is $100+ a month, purely for the privilege of using the road you already pay taxes for. It is a nickel and dime operation that adds up to thousands a year.
• Flood and Fire Insurance: If you are in a flood zone near the lake or the Fox River, standard homeowners or renters insurance won't cover you. You need a separate flood policy. In Illinois, the average flood policy can run you $1,000 annually, minimum. If you are in an HOA (Homeowners Association) community, expect fees ranging from $150 to $400 a month. These fees rarely cover the things you actually want, but they cover the landscaping you didn't ask for and the insurance on the clubhouse you'll never use.
• Parking and Winter: If you are in an apartment complex, parking is rarely free. Expect $50 to $100 a month for a spot. If you street park, you are battling the "Winter Ban" from November to April. You will get ticketed. It is a matter of when, not if. Budget $200 a year for parking tickets alone if you are lazy.

Lifestyle Inflation

The cost of existence in Waukegan is deceptive. It feels cheaper than Chicago, until you want to do anything.

A night out is not cheap. A decent draft beer and a burger at a local spot will run you $25.00 before tip. If you want a cocktail, add another $12.00. A monthly gym membership at a standard facility (not a luxury boutique) is roughly $45.00 to $65.00. A cup of coffee has crossed the $4.00 threshold for anything beyond basic drip. These small leaks sink the ship. If you buy a coffee every workday, that is $80+ a month. If you go out to eat twice a week, you are burning an extra $400 a month easily. The "entertainment" tax is high here because the options are limited, and the venues charge what the market will bear.

Salary Scenarios

Here is the reality of what you need to bring home to survive the Waukegan bleed. Note that "Single Income" assumes one earner supporting the household, while "Family Income" assumes two earners splitting the load.

Scenario Analysis

The Frugal Scenario: To hit this at $48,000 single income, you are taking home roughly $3,000 a month after taxes. Your rent is $1,280. That leaves $1,720. Car insurance, gas, and tolls will take $400. Utilities and electric take $200. Groceries take $400. You are left with $720. That has to cover your phone, clothes, and any entertainment. If you get sick, you are broke.

The Moderate Scenario: At $65,000 single income, you are taking home roughly $3,900. The math looks better, but the trap is the "buying up." You move from a $1,280 apartment to a $1,800 mortgage + HOA + Tax payment. Suddenly, your housing is $2,200 a month. You are back to the same tight budget as the frugal person, but with slightly nicer walls. This is where lifestyle inflation eats you.

The Comfortable Scenario: At $90,000, you finally defeat the system. You take home roughly $5,300. A $2,500 housing cost (including the heavy tax load) leaves you $2,800. You can afford the $100 toll bill, the $50 gym, and the $25 burgers without checking your bank account. This is the only income level where the 98.9 COL index actually feels true. Anything below this, and you are fighting the numbers every single day.