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Part of G.I. Jobs 50 States of Opportunity for Veterans series.

Using the Military Friendly® States Tool, this series explores what makes each state unique and why it may be the perfect place to begin your next mission.

Best States for Veterans: Illinois

Illinois is a little different from some of the states we’ve covered in this series.

It’s not necessarily the place you move if you’re looking for mountains in your backyard or the smallest possible town. Illinois is big, diverse and heavily urbanized. It has Chicago, one of the largest cities in the country, but it also has small towns, college communities, farming communities and quiet stretches of southern Illinois that feel like a completely different state.

For Veterans, that variety can be a major advantage.

Illinois has nearly half a million Veterans, according to the latest Census Bureau estimates, along with a huge civilian economy, major healthcare systems, nationally recognized universities and a long list of state-level Veteran benefits.

And there’s another number worth paying attention to: Illinois had 6.18 million nonfarm payroll jobs in July 2026, a record high for the state. The unemployment rate was 4.9%.

That doesn’t mean finding a job is automatically easy. It does mean Veterans have access to a very large and diversified labor market.

Healthcare is another strong point.

Illinois has multiple VA healthcare systems and a statewide network that includes medical centers, outpatient clinics, community-based outpatient clinics and Vet Centers. The Illinois Department of Veterans’ Affairs says the state has 20 outpatient clinics, 13 community-based outpatient clinics and 11 Vet Centers.

Then there are the benefits.

Illinois offers the Illinois Veterans’ Grant, which can pay tuition and mandatory fees at Illinois public colleges and universities for eligible Veterans.

Qualifying disabled Veterans can also receive significant property-tax relief. Veterans with a service-connected disability of 70% or more can receive an exemption on the first $250,000 of equalized assessed value of a primary residence under the state’s standard disabled Veteran homestead exemption.

And if you’re a military retiree, Illinois has another big advantage: qualifying military retirement income is not taxed by the state. Illinois excludes federally taxed portions of government retirement and disability plans, including military plans, from state income tax.

So, yes—Illinois has some legitimate advantages for Veterans.

But there are trade-offs.

Chicago-area housing can be expensive. Property taxes can be high. Traffic can test your patience. Winters aren’t exactly subtle.

On the other hand, you get something that’s hard to beat:

Options.

You can build a career in Chicago, attend school in Champaign-Urbana, work in manufacturing around Rockford, pursue government work in Springfield, settle into a smaller community or live near one of the state’s many outdoor recreation areas.

Illinois isn’t one-size-fits-all.

And that’s exactly why it’s worth considering.

Table of Contents

• Veteran Snapshot
• Why Veterans Choose Illinois
• Illinois by the Numbers
• Employment Outlook for Veterans
• Education Opportunities
• Veteran Benefits in Illinois
• Healthcare & VA Resources
• Best Cities for Veterans
• Cost of Living
• Outdoor Recreation & Veteran Lifestyle
• Pros & Cons
• Is Illinois Right for You?
• Frequently Asked Questions

—

Veteran Snapshot

Category	Illinois
Population	12,719,141
Veteran Population	478,196
Median Household Income	$83,390
Median Home Value	$263,300
Median Gross Rent	$1,274
Homeownership Rate	67.1%
Mean Commute	27.8 minutes
Veteran-Owned Employer Firms	8,170
Employer Establishments	322,415
Total Employment	5,661,761
Population Change Since 2020	-0.8%

Source: U.S. Census Bureau QuickFacts, 2020–2025 data.

Illinois has one of the country’s largest Veteran populations. The Census Bureau estimates 478,196 Veterans lived in the state during the 2020–2024 period.

The VA’s FY2025 data uses a different methodology and estimates Illinois’ total Veteran population at approximately 587,546, which is why you may see different Veteran population figures depending on the source.

For this article, the Census Bureau figure is used for population and housing comparisons, while VA figures are used where they specifically describe VA programs and Veteran services.

—

Why Veterans Choose Illinois

Illinois has one thing that some smaller states simply can’t offer: scale.

There are a lot of people here.

That means a lot of employers, colleges, industries, healthcare systems, professional networks and communities.

For a Veteran trying to figure out what comes after the military, that can be incredibly valuable.

A Massive Civilian Job Market

Illinois had 322,415 employer establishments and more than 5.66 million jobs in 2023, according to the Census Bureau.

The state isn’t dependent on one industry.

You can find significant employment opportunities in:

• Healthcare
• Manufacturing
• Transportation
• Logistics
• Finance
• Technology
• Government
• Professional services
• Education
• Construction
• Energy
• Agriculture
• Retail

That variety gives Veterans more room to experiment with their next career.

Maybe you leave the military knowing exactly what you want to do.

Maybe you don’t.

Illinois can work either way.

Chicago Is a Major Career Engine

Let’s address the obvious.

Chicago is huge.

For Veterans with experience in leadership, logistics, intelligence, cybersecurity, transportation, finance, aviation, healthcare, communications or operations, the Chicago metropolitan area can open doors that simply aren’t available in smaller markets.

And you don’t necessarily have to live downtown.

Communities throughout the Chicago suburbs can put you within reach of the city’s employment market while offering a very different lifestyle.

That makes the Chicago area particularly interesting for Veterans with families.

There’s More to Illinois Than Chicago

This is important.

If you read “Illinois” and immediately picture downtown Chicago, you’re missing about 95% of the story.

Central Illinois has cities such as Springfield, Bloomington-Normal, Peoria and Champaign-Urbana.

Northern Illinois includes Rockford and communities throughout the Chicago suburbs.

Southern Illinois has a slower pace and access to the Shawnee National Forest and other outdoor recreation.

Your Illinois experience can be dramatically different depending on where you live.

Illinois by the Numbers

Metric	Illinois
Population	12,719,141
Veterans	478,196
Median Household Income	$83,390
Median Home Value	$263,300
Median Gross Rent	$1,274
Homeownership Rate	67.1%
Veteran-Owned Employer Firms	8,170
Employer Establishments	322,415
Total Employment	5,661,761
Mean Commute	27.8 minutes
Population Density	230.8 people/sq. mile

Source: U.S. Census Bureau QuickFacts.

One of the more interesting numbers here is 8,170 Veteran-owned employer firms.

That means Illinois isn’t just a place where Veterans can find jobs.

It’s also a place where Veterans are building businesses.

If entrepreneurship is part of your next mission, Illinois gives you access to a large customer base, transportation infrastructure, major metropolitan markets and a deep pool of potential employees and partners.

—

Employment Outlook for Veterans

Illinois’ job market is large enough that it’s difficult to summarize in one sentence.

That’s actually a good thing.

As of July 2026, Illinois had a 4.9% unemployment rate, while total nonfarm payroll employment reached a record 6,176,400 jobs. Payrolls increased by 11,700 jobs during the month.

The biggest monthly gains came from:

• Private education and health services
• Trade, transportation and utilities
• Professional and business services

Compared with a year earlier, the largest employment gains came in:

• Private education and health services
• Construction
• Government

For Veterans, that’s a pretty useful mix.

—

Healthcare

Healthcare is one of Illinois’ largest employment sectors.

And it’s not just hospitals.

Veterans can find opportunities in:

• Nursing
• Healthcare administration
• Medical logistics
• IT
• Facilities
• Security
• Emergency management
• Clinical support
• Behavioral health
• Medical technology

Military medical experience can be especially valuable, but so can the less obvious skills you developed while serving.

Scheduling.

Personnel management.

Supply chain.

Compliance.

Emergency response.

Those skills have civilian value.

Manufacturing

Illinois has one of the largest manufacturing economies in the country.

The state’s manufacturing base includes:

• Machinery
• Food processing
• Automotive
• Chemicals
• Metals
• Aerospace
• Medical equipment
• Electronics
• Industrial equipment

Veterans with maintenance, mechanical, electrical, quality-control, logistics and operations backgrounds should take a close look at this sector.

A military job title may not translate directly to a civilian job title.

The underlying skills often do.

Transportation & Logistics

If you spent your military career moving people, equipment or supplies, Illinois deserves your attention.

The state’s central location makes it one of the country’s major transportation and logistics hubs.

The Census Bureau reports more than $73.6 billion in transportation and warehousing receipts/revenue in Illinois in 2022.

That creates opportunities in:

• Supply chain management
• Fleet operations
• Distribution
• Warehousing
• Transportation
• Procurement
• Inventory management
• Operations management

For many Veterans, this is one of the easiest military-to-civilian skill transitions to make.

Government & Public Service

Springfield is the state capital, and state government is a significant employer.

Illinois also provides Veteran preference for state employment, with qualified Veterans receiving additional points applied to passing application scores.

For Veterans who enjoy structured organizations, public service and mission-driven work, state government can be worth exploring.

And if you’re coming from a military background, the culture of public service may feel familiar. See more Military Friendly® Employers.

Illinois JobLink Gives Veterans Priority

Illinois has another useful employment resource that doesn’t get enough attention.

The Illinois Department of Employment Security operates Illinois JobLink, a free job-search service.

Veterans receive priority access to job openings and employment services through the system. Their Veteran status is also identified with an American Flag icon on their resume so participating employers can recognize their status.

That’s worth signing up for even if you’re already using LinkedIn or other job boards.

More doors are better.

Certifications Can Open a Faster Route

Not every Veteran needs another degree.

Illinois’ approved education and training ecosystem includes vocational programs, apprenticeships, on-the-job training, licensing and certification programs.

If you’re trying to change careers quickly, a certification can sometimes make more sense than spending several years earning another degree.

—

Education Opportunities

This is another area where Illinois punches above its weight.

You’ve got major public universities, private universities, community colleges, technical programs, apprenticeships and career-training programs.

Some of the state’s best-known schools include:

• University of Illinois Urbana-Champaign
• University of Illinois Chicago
• Illinois State University
• Northern Illinois University
• Southern Illinois University
• Western Illinois University
• University of Illinois Springfield
• Loyola University Chicago
• DePaul University
• Northwestern University

And that’s before you get into the state’s extensive community college network.

For Veterans, the real story isn’t simply the number of schools.

It’s the combination of federal and state benefits.

The Illinois Veterans’ Grant

This is one of Illinois’ biggest advantages for eligible Veterans.

The Illinois Veterans’ Grant (IVG) pays tuition and mandatory fees at Illinois state-supported colleges, universities and community colleges for qualifying Illinois Veterans.

Eligibility requirements include conditions related to discharge, Illinois residency, active-duty service and when the Veteran returned to Illinois.

The program can be particularly valuable when combined with federal education benefits.

In other words:

Don’t assume the GI Bill is your only education benefit.

Check the state programs, too.

Apprenticeships & Career Training

College isn’t the only route.

Illinois’ State Approving Agency approves:

• Colleges and universities
• Vocational schools
• Business schools
• Professional schools
• Flight schools
• Apprenticeships
• On-the-job training
• Licensing programs
• Certification testing

for eligible federal education benefits.

That gives transitioning Veterans a lot more flexibility.

If your goal is to get into a career rather than collect another diploma, explore those options.

Education Benefits for Dependents

Illinois also offers education programs for qualifying dependents.

The state’s Deceased, Disabled and MIA/POW Veterans’ Dependents Scholarship can cover tuition and mandatory fees at Illinois public colleges and universities for eligible dependents of qualifying Veterans. The program provides up to the equivalent of four years of enrollment, subject to program rules.

There is also an annual $250 educational opportunity grant for qualifying children ages 10 through 18.

For military families thinking about the long game, these programs can make Illinois considerably more attractive.

Veteran Benefits in Illinoi

Illinois has a strong list of state-specific Veteran benefits.

And some are substantial enough to influence where you decide to live.

Military Retirement Income Isn’t Taxed

For military retirees, this is a major selling point.

Illinois does not tax qualifying federally taxed retirement income from government retirement or government disability plans, including military plans.

That means qualifying military retirement income can avoid Illinois’ state income tax.

If you’re deciding between states as a military retiree, this deserves a spot near the top of your spreadsheet.

Property Tax Benefits for Disabled Veterans

Illinois offers several property-tax exemptions for qualifying Veterans.

The Standard Homestead Exemption for Veterans with Disabilities provides:

• $2,500 reduction in equalized assessed value for Veterans rated 30% to less than 50% disabled
• $5,000 reduction for Veterans rated 50% to less than 70%
• An exemption on the first $250,000 of equalized assessed value for qualifying Veterans rated 70% or more

That’s a significant benefit for qualifying homeowners.

There are also additional exemptions for specially adapted housing.

Returning Veteran’s Homestead Exemption

Illinois also provides a one-time $5,000 reduction in equalized assessed value for qualifying Veterans returning from active duty in an armed conflict involving U.S. armed forces.

It’s another benefit that’s easy to overlook if you aren’t actively searching for it.

Veteran Preference for State Jobs

Qualified Veterans seeking state employment receive additional points on passing application scores.

For Veterans interested in public-sector careers, that can be meaningful.

Illinois also has specific education waivers for qualifying Veterans seeking to join the Illinois State Police or Illinois Conservation Police.

Illinois Veterans’ Homes

Illinois operates five Veterans’ Homes:

• Anna
• Chicago
• LaSalle
• Manteno
• Quincy

They provide skilled nursing and other residential care for qualifying Veterans and, in some locations, eligible spouses.

The homes range from rural settings to the newer urban Chicago facility.

That’s an important resource for aging Veterans and families planning beyond the immediate transition from military service.

Healthcare & VA Resources

Healthcare is one of Illinois’ stronger Veteran resources.

The state has a broad VA network serving Veterans across northern, central and southern Illinois.

The Illinois Department of Veterans’ Affairs says Illinois has:

• VA Medical Centers
• 20 outpatient clinics
• 13 Community-Based Outpatient Clinics
• 11 Vet Centers

That doesn’t mean every Veteran lives five minutes from a VA facility.

Illinois is a large state.

But the network is extensive.

VA Hines Healthcare System

For Veterans in the Chicago region, Edward Hines Jr. VA Hospital is the major VA facility.

Hines is located about 12 miles west of downtown Chicago and offers primary, extended and specialty care. Its network includes six outpatient clinics.

The system provides care for more than 56,000 Veterans.

Its clinics include locations serving communities such as:

• Aurora
• Hoffman Estates
• Joliet
• Bourbonnais
• Peru
• Oak Lawn

VA Illiana Healthcare System

Central and eastern Illinois are served in part by the VA Illiana Healthcare System.

The system includes the Danville VA Medical Center and community-based outpatient clinics in Bloomington, Champaign, Decatur, Mattoon, Peoria and Springfield.

The system serves more than 29,000 unique Veterans.

That’s particularly useful for Veterans living outside the Chicago metropolitan area.

Illinois Veteran Service Officers

One of the best resources in the state may be a person rather than a building.

Illinois has Veteran Service Officers throughout the state who can help Veterans navigate federal and state benefits.

If you’re moving to Illinois, applying for benefits or simply trying to figure out what you’re eligible for, connecting with a VSO early can save you a lot of time.

Best Cities for Veterans

Illinois has enough variety that choosing a city is almost as important as choosing the state.

Here are some places worth putting on your list.

Chicago

Best for: Maximum career opportunity, healthcare, education and big-city life

Chicago is the obvious choice if career opportunity is your No. 1 priority.

The city and surrounding metro area offer major employers across nearly every industry.

You also have access to Hines VA, major universities, professional networks and a huge Veteran community.

The downside?

Housing, traffic and taxes.

Chicago is a city you choose because of what it offers—not because you’re looking for cheap living.

Naperville

Best for: Families, suburban living and Chicago-area careers

Naperville gives Veterans access to the Chicago employment market without requiring them to live in the city itself.

It’s particularly attractive for families who want strong suburban infrastructure, schools and community amenities.

The trade-off is cost.

You generally pay a premium for the location and quality-of-life advantages.

Rockford

Best for: Manufacturing, logistics and a lower-cost alternative to Chicago

Rockford sits in northern Illinois and has long been associated with manufacturing, aviation, healthcare and logistics.

For Veterans with technical or industrial backgrounds, it can be an interesting alternative to the Chicago market.

And housing is generally more approachable than in many Chicago suburbs.

Peoria

Best for: Healthcare, manufacturing and a smaller-city lifestyle

Peoria sits along the Illinois River and has a diverse employment base.

Healthcare and manufacturing are particularly important.

Its smaller scale can appeal to Veterans who want access to jobs and services without living in a giant metro area.

It’s also within the VA Illiana healthcare network.

Springfield

Best for: Government, public service and a smaller-city environment

Springfield is Illinois’ capital, so government is a major part of the local economy.

For Veterans interested in public service, administration, law enforcement or government careers, Springfield deserves a look.

It’s also home to extensive state services and Veteran resources.

Champaign-Urbana

Best for: Education, technology and research

The Champaign-Urbana area is anchored by the University of Illinois Urbana-Champaign.

That makes it an especially interesting option for Veterans pursuing higher education, research, technology or professional careers.

The nearby VA Illiana network also includes a Champaign outpatient clinic.

Cost of Living

Illinois is difficult to label as simply “expensive” or “affordable.”

It depends heavily on where you live.

The statewide median value of an owner-occupied home is $263,300, while median gross rent is $1,274. Median household income is $83,390.

Illinois Housing Snapshot

Cost Metric	Illinois
Median Home Value	$263,300
Median Gross Rent	$1,274
Median Monthly Homeowner Costs With Mortgage	$1,987
Median Household Income	$83,390
Homeownership Rate	67.1%

Source: U.S. Census Bureau, 2020–2024.

That statewide median can be misleading, though.

A Veteran living in rural southern Illinois is going to have a completely different housing experience from someone living in downtown Chicago or an affluent suburb.

That’s why your city choice matters so much.

The Tax Question

Illinois has a reputation for high taxes, and that’s not something Veterans should ignore.

Property taxes can be substantial, especially in parts of northern Illinois.

But military retirees have an important advantage: qualifying military retirement income isn’t subject to Illinois state income tax.

And qualifying disabled Veterans can receive significant property-tax exemptions.

So the real question isn’t:

“Are Illinois taxes high?”

It’s:

“How does Illinois’ tax structure affect my specific situation?”

A military retiree with a qualifying disability exemption may see Illinois very differently from a young Veteran renting an apartment in Chicago.

Outdoor Recreation & Veteran Lifestyle

No, Illinois isn’t Colorado.

And that’s okay.

You can still get outside.

Illinois has more than 1,500 miles of navigable rivers, Lake Michigan along its northeastern edge and extensive state and national recreation areas.

Veterans can enjoy:

• Hiking
• Fishing
• Hunting
• Camping
• Boating
• Kayaking
• Cycling
• Golf
• Snow sports
• Wildlife watching
• Off-road recreation

Starved Rock State Park

Starved Rock is one of Illinois’ most popular outdoor destinations.

Located along the Illinois River, the park is known for its sandstone canyons, waterfalls, wooded trails and overlooks.

It’s close enough to the Chicago region for a weekend escape but feels considerably farther away.

Shawnee National Forest

Southern Illinois offers a completely different outdoor experience.

The Shawnee National Forest covers hundreds of thousands of acres and includes hiking, camping, horseback riding, fishing and other outdoor activities.

The area around the Garden of the Gods is particularly popular.

For a Veteran who wants a slower pace and outdoor access, southern Illinois can be a surprisingly strong option.

Lake Michigan

Chicago’s location on Lake Michigan gives Illinois residents access to beaches, boating, fishing, kayaking and waterfront recreation without leaving the state.

That’s one of the underrated benefits of living in the Chicago area.

You can have a serious career in one of America’s largest cities and still be on the water after work.

Pros & Cons

Pros

✔ Nearly 480,000 Veterans according to Census estimates

✔ One of the largest civilian job markets in the country

✔ Record-high payroll employment in 2026

✔ Major healthcare and professional-services industries

✔ Strong manufacturing and logistics sectors

✔ Large Chicago-area employment market

✔ Military retirement income generally exempt from Illinois income tax

✔ Illinois Veterans’ Grant can cover tuition and mandatory fees at qualifying public schools

✔ Strong Veteran hiring preference for state employment

✔ Significant property-tax benefits for qualifying disabled Veterans

✔ Five state Veterans’ Homes

✔ Extensive VA healthcare network

✔ Multiple VA medical centers and outpatient clinics

✔ Strong university and community college system

✔ Apprenticeship and vocational training options

✔ Major transportation and logistics hub

✔ Large Veteran-owned business community

✔ Diverse range of cities and lifestyles

Cons

✖ Property taxes can be high

✖ Chicago-area housing can be expensive

✖ Traffic and longer commutes in major metro areas

✖ Illinois’ overall population has declined slightly since 2020

✖ State tax burden can be a concern depending on your situation

✖ Winters can be cold and windy

✖ Rural areas may have fewer specialized career opportunities

✖ Chicago’s cost of living can be substantially different from the statewide median

✖ Choosing the wrong city can dramatically change your experience

Is Illinois Right for You?

Illinois makes the most sense for Veterans who want options.

That’s really the word I’d use.

Want a massive civilian job market?

You’ve got it.

Want a major university?

You’ve got plenty.

Want to work in manufacturing?

Illinois has it.

Want government work?

Look at Springfield.

Want logistics?

You’re in one of the country’s major transportation hubs.

Want healthcare?

There are major systems throughout the state.

Want to stay connected to the Veteran community?

With nearly half a million Veterans in the Census estimate, you’re certainly not starting from scratch.

Want to build a business?

Illinois has thousands of Veteran-owned employer firms.

And if you’re a military retiree, the state’s treatment of qualifying military retirement income is a serious advantage.

The biggest thing to understand is that Illinois isn’t one experience.

Chicago can be fast, expensive and career-focused.

Springfield is more government-oriented.

Rockford has a strong industrial identity.

Champaign-Urbana revolves around education and research.

Peoria gives you a smaller-city option with healthcare and manufacturing.

Southern Illinois gives you considerably more space and outdoor access.

That’s why Veterans shouldn’t simply ask whether Illinois is a good state.

Ask:

Which Illinois?

That’s the question that will actually help you make the right decision.

Frequently Asked Questions

Is Illinois a good state for Veterans?

Yes. Illinois offers a large civilian job market, nearly 480,000 Veterans according to Census estimates, extensive VA healthcare, major education benefits and several state-specific Veteran programs.

How many Veterans live in Illinois?

The Census Bureau estimates 478,196 Veterans in Illinois based on 2020–2024 data. The VA’s FY2025 estimate is higher at approximately 587,546 because the two agencies use different methodologies.

Does Illinois tax military retirement?

Qualifying military retirement income is generally not subject to Illinois state income tax. Illinois excludes federally taxed portions of government retirement and disability plans, including military plans, from state income tax.

Does Illinois offer property-tax exemptions for disabled Veterans?

Yes. Qualifying disabled Veterans can receive property-tax reductions based on their service-connected disability rating. Veterans rated 70% or more may qualify for an exemption on the first $250,000 of equalized assessed value of their primary residence.

Does Illinois offer free college for Veterans?

Eligible Veterans may qualify for the Illinois Veterans’ Grant, which pays tuition and mandatory fees at Illinois state-supported colleges, universities and community colleges. Eligibility requirements apply.

Does Illinois give Veterans hiring preference?

Yes. Qualified Veterans seeking state employment receive additional points applied to passing application scores.

Where should Veterans live in Illinois?

Chicago and its suburbs are strongest for broad career opportunities. Rockford can be attractive for manufacturing and lower housing costs. Springfield is a good option for government careers, Peoria offers a smaller-city mix of healthcare and manufacturing, and Champaign-Urbana is particularly strong for education and research.

Does Illinois have good VA healthcare?

Illinois has an extensive VA healthcare network, including VA medical centers, outpatient clinics, community-based outpatient clinics and Vet Centers.

How many Illinois Veterans’ Homes are there?

Illinois operates five Veterans’ Homes in Anna, Chicago, LaSalle, Manteno and Quincy.

Can Veterans use the GI Bill for trade programs in Illinois?

Yes. Illinois’ State Approving Agency approves eligible vocational schools, apprenticeships, on-the-job training, licensing and certification programs for federal education benefits.

Is Illinois affordable for Veterans?

It depends heavily on where you live. The statewide median home value is $263,300 and median gross rent is $1,274, but costs vary dramatically between Chicago, its suburbs, central Illinois and southern Illinois.

Does Illinois have Veteran-owned businesses?

Yes. The Census Bureau reports 8,170 Veteran-owned employer firms in Illinois for 2023.