The border battle. Illinois' 4.95% flat slightly exceeds Missouri's 4.8% effective rate, but income tax difference is tiny ($260/year at $100K). Property tax is the decision-maker: Illinois 2.08% (2nd-highest nationally) vs Missouri 0.93%. On $400K home: IL $8,320/year vs MO $3,720—MO saves $4,600 annually. Total at $100K + $400K home: Missouri saves $4,860/year. St. Louis metro straddles both states, allowing border arbitrage—live MO, work IL, save thousands. Illinois' pension crisis threatens future tax hikes, making Missouri's stability attractive.

By CountryTaxCalc Research Team

Last Updated: April 2026

The Big Picture

🌽 Illinois

4.95%

Flat Tax

Flat rate + high property

🏹 Missouri

4.8%

Near-Flat Tax

2-4.8% (top at $8,449, effectively flat)

Typical Annual Savings

At $100,000 income:

$150 income / +$3,720 property

That is MO saves $323/month total back in your pocket!

Tax Savings by Income Level

IncomeIL TaxMO TaxSavings10-Year
$50,000 $2,475$2,277MO saves $198$1,980
$75,000 $3,713$3,511MO saves $202$2,020
$100,000 $4,950$4,690MO saves $260$2,600
$150,000 $7,425$7,090MO saves $335$3,350
$250,000 $12,375$11,890MO saves $485$4,850
$500,000 $24,750$23,890MO saves $860$8,600

Illinois Pros and Cons

✅ Pros

  • Chicago: world-class city, 35 Fortune 500 HQs
  • Higher median income ($88K IL vs $65K MO)
  • More international flights and connectivity
  • Stronger finance/healthcare sectors

❌ Cons

  • 2nd-highest property taxes nationally (2.08%)
  • $140B pension crisis threatens future tax hikes
  • Population decline (-104K in 2021-2022)
  • Chicago violence concerns in some neighborhoods

Missouri Pros and Cons

✅ Pros

  • Lower income tax (4.8% effective vs IL 4.95%)
  • Much lower property tax (0.93% vs IL 2.08%)
  • Lower cost of living overall (15-20% cheaper)
  • Border proximity allows St. Louis metro straddling

❌ Cons

  • Lower median income ($65K vs IL $88K)
  • Smaller economy and fewer Fortune 500 HQs
  • St. Louis crime concerns
  • Less public transit (car-dependent)
💡

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Frequently Asked Questions

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

At $100K income: MO saves $260/year income tax (IL $4,950 → MO $4,690). Property tax is where massive savings occur: IL 2.08% vs MO 0.93%. On $400K home: IL pays $8,320/year vs MO $3,720—MO saves $4,600/year. Total at $100K + $400K home: MO saves $4,860 annually ($48,600 over 10 years). Add lower cost of living (groceries, utilities 15% cheaper), total savings exceed $60K over 10 years.

Q: Can I live in Missouri and commute to Illinois for work?

Yes—this is the "St. Louis metro border arbitrage" strategy. Live in Missouri (O'Fallon, St. Charles, Chesterfield suburbs), work in Illinois (Belleville, Edwardsville). You'll pay Illinois tax on IL-sourced income, then get credit against MO tax. Net: you pay higher of IL 4.95% or MO 4.8% = IL wins (4.95%). But you SAVE on property tax ($4,600/year on $400K home) and sales tax (MO 7.48% vs IL 8.5%). Real savings: $5,000+/year from property tax alone.

Q: Is Kansas City or St. Louis better for Illinois refugees?

St. Louis for proximity: 4.5 hours from Chicago, border with Illinois (metro straddles states), 2.8M metro. Corporate: Boeing, Emerson, Express Scripts. Median home $250K. Crime concerns in city proper but suburbs (Clayton, Ladue, Chesterfield) safe. Kansas City for growth: 2.2M metro, Hallmark, Cerner (Oracle), Sprint. Median home $320K. Farther from Chicago (7 hours) but booming economy. Choose STL for IL border proximity, KC for economic growth + lower crime.

Q: What about Missouri property taxes vs Illinois?

Missouri property tax 0.93% average (37th nationally) vs Illinois 2.08% (2nd-highest, only NJ worse). On $400K home: MO $3,720/year vs IL $8,320—MO saves $4,600 annually. Over 30-year mortgage: save $138,000 in property tax by living in Missouri. This single factor drives IL-to-MO migration more than income tax difference ($260/year). For homeowners, Missouri wins decisively.

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

Yes, and Missouri is BETTER tax-wise if you work for IL employer REMOTELY from MO. You pay Missouri taxes (4.8%) on that income, NOT Illinois (4.95%). At $100K: save $150/year. Plus: MO property tax $3,720 (0.93% × $400K) vs IL $8,320 (2.08%)—save $4,600/year. Total remote work advantage: $4,750/year at $100K + $400K home. Many Chicago remote workers move to St. Louis suburbs, keep Chicago salaries, pay MO taxes, slash housing costs.

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