Illinois charges 4.95% flat income tax while Florida has zero state income tax protected by its constitution. A $100,000 earner saves $4,950 per year moving from Illinois to Florida on income tax alone. Property taxes tell a more complex story: Illinois has the 2nd highest rate in America at 2.08% average, while Florida averages 0.86%. However, Illinois home values are generally lower, partially offsetting the rate difference. Florida wins decisively for working-age earners and those with estates over $4M (Illinois estate tax vs Florida's none). Retirees benefit from Illinois' retirement income exemption but still save more in Florida due to property tax differences.

By CountryTaxCalc Research Team

Last Updated: March 2026

The Big Picture

🏙️ Illinois

4.95%

Flat Tax

Plus 2nd highest property tax in US

🌴 Florida

0%

No Income Tax

Constitutional prohibition on income tax

Typical Annual Savings

At $100,000 income:

$4,950

That is $413/month back in your pocket!

Tax Savings by Income Level

IncomeIL TaxFL TaxSavings10-Year
$50,000 $2,475$0$2,475$24,750
$75,000 $3,713$0$3,713$37,130
$100,000 $4,950$0$4,950$49,500
$150,000 $7,425$0$7,425$74,250
$250,000 $12,375$0$12,375$123,750
$500,000 $24,750$0$24,750$247,500

Illinois Pros and Cons

✅ Pros

  • Retirement income exempt (Social Security, pensions, 401k/IRA distributions)
  • Chicago job market offers 20-40% salary premiums in finance, law, tech
  • World-class public transit (CTA, Metra) in Chicago metro
  • Lower home values than Florida in many markets
  • Four seasons climate (no hurricanes)

❌ Cons

  • 4.95% flat income tax from first dollar earned
  • 2nd highest property tax rate in America (2.08% average)
  • Cook County adds local taxes and fees (Chicago area)
  • Estate tax: 0.8-16% on estates over $4M
  • Population decline: Lost 100K+ residents to FL in 2020-2024

Florida Pros and Cons

✅ Pros

  • 0% state income tax (constitutional protection)
  • No estate tax or inheritance tax
  • Lower property tax rate (0.86% vs 2.08%)
  • Homestead exemption up to $50K reduces property tax
  • Warm weather year-round, no state tax on retirement income

❌ Cons

  • Higher median home values (offsetting some property tax benefit)
  • High homeowners insurance (hurricanes, flooding)
  • Hot, humid summers (90°F+ for 6 months)
  • Hurricane risk (coastal areas)
  • Car-dependent outside major metros
💡

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Frequently Asked Questions

Q: How much money will I save moving from Illinois to Florida?

At $100,000 income, you save $4,950 per year ($413/month) on income tax alone moving to Florida. Property tax savings depend on home value, but even accounting for FL's higher home prices, total tax savings typically range from $6,000-10,000/year for a $100K earner with a median-priced home. Over 10 years, that's $60,000-100,000 saved.

Q: Does Florida really have no state income tax?

Yes. Florida's constitution (Article VII, Section 5) prohibits state income tax and requires any personal income tax to pass a constitutional amendment with 60% voter approval. This has never happened and is highly unlikely. Florida collects revenue through sales tax, property tax, and fees instead. Zero income tax is constitutionally protected.

Q: What are the property tax differences between Illinois and Florida?

Illinois property tax averages 2.08% of assessed value (2nd highest in US). Florida averages 0.86% (26th highest). On a $300,000 home: IL = $6,240/year, FL = $2,580/year. However, comparable homes often cost more in Florida. On a $400,000 FL home = $3,440/year. Florida also offers a Homestead Exemption reducing taxable value by $50,000, saving $400-600/year.

Q: Is Illinois or Florida better for retirees?

Florida is better for most retirees despite Illinois' retirement income exemption. Illinois exempts Social Security, pensions, and retirement account withdrawals from income tax (huge benefit). But Florida has no income tax at all PLUS lower property taxes. A retiree with $80,000 retirement income pays $0 income tax in both states, but saves $2,000-4,000/year on property tax in Florida. Florida also has no estate tax.

Q: What is Illinois' estate tax and how does it compare to Florida?

Illinois imposes a 0.8-16% estate tax on estates exceeding $4 million. The rate is progressive: 0.8% on the first portion, rising to 16% on amounts over $10 million. A $10 million estate pays ~$480,000 Illinois estate tax. Florida has no estate tax or inheritance tax. Wealthy Illinois residents often establish Florida residency before death to save heirs hundreds of thousands or millions.

Q: Do I need to change residency completely to avoid Illinois tax?

Yes. Illinois will tax you as a resident if you maintain domicile there. To establish Florida residency: (1) spend 183+ days in Florida, (2) get Florida driver's license, (3) register to vote in Florida, (4) file Declaration of Domicile with county clerk, (5) update financial accounts and estate documents. Illinois audits aggressively for escaped income tax—keep a diary of days in each state.

Q: Which has higher sales tax: Illinois or Florida?

Illinois: 6.25% state + local (total ranges 6.25-10.25%, with Chicago at 10.25%). Groceries taxed at 1% reduced rate. Florida: 6% state + local (total ranges 6-7.5%). Groceries exempt. For most residents outside Chicago, sales tax rates are similar (7-8%). The difference is minor compared to the massive income tax gap ($4,950/year at $100K income).

Q: Why are so many people moving from Illinois to Florida?

Florida's zero income tax saves $4,950/year per $100,000 earned. Combined with lower property taxes, warmer weather, no estate tax, and business-friendly environment, the appeal is clear. Illinois lost over 100,000 residents to Florida between 2020-2024. Retirees save on property taxes and avoid estate tax. Remote workers keep high salaries while eliminating state income tax. Business owners benefit from Florida's lower regulatory burden.

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