The property tax surprise. Illinois' 4.95% flat rate beats Georgia's 5.49%, but property tax reverses everything. At $100,000 income: Illinois $4,950 vs Georgia $5,490—IL saves $540/year on income tax. BUT Illinois has 2nd-highest property tax (2.08%) vs Georgia (0.87%). On $400K home: IL pays $8,320 property tax vs GA $3,480—GA saves $4,840/year. Total at $100K + $400K home: Georgia saves $4,300 annually. Atlanta's boom (16 Fortune 500 HQs, film industry) plus lower cost of living makes Georgia attractive despite higher income tax rate.

By CountryTaxCalc Research Team

Last Updated: April 2026

The Big Picture

🌽 Illinois

4.95%

Flat Tax

Flat rate + high property

🍑 Georgia

5.49%

Flat Tax

Changed to flat 5.49% in 2024

Typical Annual Savings

At $100,000 income:

-$540 income / +$4,920 property

That is Complex—see breakdown back in your pocket!

Tax Savings by Income Level

IncomeIL TaxGA TaxSavings10-Year
$50,000 $2,475$2,745IL saves $270 (income only)$2,700
$75,000 $3,713$4,118IL saves $405 (income only)$4,050
$100,000 $4,950$5,490IL saves $540 (income only)$5,400
$150,000 $7,425$8,235IL saves $810 (income only)$8,100
$250,000 $12,375$13,725IL saves $1,350 (income only)$13,500
$500,000 $24,750$27,450IL saves $2,700 (income only)$27,000

Illinois Pros and Cons

✅ Pros

  • Lower income tax (4.95% vs GA 5.49%)
  • Chicago: world-class city, Fortune 500 HQ capital of Midwest
  • Strong finance/healthcare/manufacturing sectors
  • Public transit in Chicago (no car needed)

❌ Cons

  • 2nd-highest property taxes nationally (2.08% avg)
  • $140B pension crisis threatens future tax increases
  • Population decline (-104K in 2021-2022)
  • Brutal winters and high heating costs

Georgia Pros and Cons

✅ Pros

  • Much lower property tax (0.87% vs IL 2.08%)
  • Atlanta: 16 Fortune 500 HQs, booming film/tech industry
  • Milder winters and lower heating costs
  • Phasing down to 4.99% by 2029

❌ Cons

  • Higher income tax (5.49% vs IL 4.95%)
  • Atlanta traffic among worst nationally
  • Hot, humid summers
  • Car-dependent (Atlanta sprawl)
💡

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Frequently Asked Questions

Q: Wait—Illinois has lower income tax than Georgia?

Yes! Illinois 4.95% flat beats Georgia 5.49% flat. At $100K income: IL $4,950 vs GA $5,490—IL saves $540/year on income tax alone. BUT property tax reverses this. Illinois has 2nd-highest property tax nationally (2.08% average) vs Georgia 0.87%. On $400K home: IL pays $8,320/year property tax vs GA $3,480—GA saves $4,840/year. Total burden at $100K + $400K home: IL pays $13,270 (income + property) vs GA $8,970. Georgia wins by $4,300/year despite higher income tax.

Q: How much will I really save moving from Illinois to Georgia?

At $100K income + $400K home: GA saves $4,300/year total ($540 more income tax BUT $4,840 less property tax). Over 10 years: $43,000. Atlanta metro median home $450K vs Chicago $350K (Atlanta slightly pricier), but GA property tax so low it doesn't matter. Add sales tax: IL 8.5% average vs GA 7.35%—GA saves another $575/year on $50K spending. Total GA advantage: $4,875/year at $100K + $400K home + $50K spending.

Q: Is Chicago or Atlanta better for job opportunities?

Chicago for: Finance (CME Group, Citadel), manufacturing (Boeing, Caterpillar), healthcare (Abbott, Baxter). Fortune 500 HQ count similar (Chicago 35, Atlanta 16). Salaries: Chicago $88K median vs Atlanta $79K (Chicago 11% higher). Atlanta for: Film/TV production ("Hollywood of South"), logistics (Hartsfield-Jackson hub), Coca-Cola/Home Depot/UPS HQs, tech (Microsoft, Google offices). Growth: Atlanta +1.3%/year, Chicago -0.2% (declining). Choose Chicago for peak earnings + established industries, Atlanta for growth + lower costs.

Q: What about Illinois' pension crisis?

Illinois has $140 billion unfunded pension liability—worst in US. State constitution protects pensions, limiting solutions. Many analysts expect future tax increases (income tax currently 4.95% could rise to 5.5-6% to address shortfall). This uncertainty drives outmigration (-104,000 residents 2021-2022). Georgia has no such crisis—pension systems well-funded. For long-term tax stability, Georgia is safer bet. If staying IL, expect potential tax hikes within 5-10 years.

Q: Can I work remotely from Georgia for an Illinois employer?

Yes. Establish genuine Georgia residency (GA driver's license, spend majority time in GA), and you pay Georgia taxes (5.49%), not Illinois (4.95%). At $100K: GA costs $540 MORE per year in income tax. BUT combine with property tax savings ($4,840/year on $400K home) and overall you save $4,300/year. Many Chicago remote workers move to Atlanta suburbs (Alpharetta, Johns Creek), keep Chicago salaries ($80-120K), pay GA taxes, save on property/cost of living. Optimal for remote workers with families (better weather, lower housing costs).

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