The Tax Brief real effective rates for 111+ countries — bi-weekly, free.
HEAD-TO-HEAD TAX COMPARISON · 2026

COUNTRY A Illinois VS COUNTRY B Tennessee

Side-by-side analysis of income tax, effective rates, and take-home pay for Illinois and Tennessee in 2026.

Daniel · CountryTaxCalc Updated October 2026 Income tax verified October 2026 Tax Comparison 2026
Calculate your take-home → See all comparisons →
OVERVIEW
Illinois charges a flat 4.95% state income tax on 2026 wages after a $2,925 personal exemption, which is lost entirely when federal AGI passes $250,000 for single filers. Tennessee does not tax wages, so a single filer with $100,000 of wages pays $4,805 less state income tax in Tennessee, $7,280 less at $150,000 and $24,750 less at $500,000. The trade-off is sales tax: Tennessee's state rate is 7% with a 9.61% population-weighted average combined rate (second highest in the US) against 8.98% for Illinois on the Tax Foundation's July 2026 update, while Chicago's combined rate is 10.5% since 1 August 2026. Property tax favors Tennessee on statewide averages: the Tax Foundation reports an effective rate of 1.88% for Illinois against 0.52% for Tennessee, about $5,440 a year on a $400,000 home, though a real bill depends on the county, and Cook County assesses residential property at 10% of market value. Combined at $100,000 of income with a $400,000 home, the statewide-average illustration is $12,325 in Illinois against $2,080 in Tennessee. Figures assume a single filer, wages only, 2026; local rates, exemptions and the actual property bill depend on the address.
Section 01

The Big Picture

Top-line rates and effective take-home for a typical earner — including income tax, social contributions, and applicable surcharges.

🏙️
COUNTRY A
Illinois
TAX RATE
4.95%
Flat Tax

4.95% flat rate after a $2,925 personal exemption (2026), which is lost above $250,000 AGI for single filers

🎸
COUNTRY B
Tennessee
TAX RATE
0%
No Wage Income Tax

No tax on wages; the Hall tax on interest and dividends was repealed from 2021

TYPICAL ANNUAL DIFFERENCE
Moving from Tennessee → Illinois at $100,000
$4,805

State income tax only: single filer, wages only, 2026, from the shared engine. With a $400,000 home at statewide average property tax rates the combined gap is $10,245 a year. Excludes sales tax, local taxes and credits.

Section 02

Tax Savings by Income Level

Net take-home after all income tax, social contributions, and surcharges — for a single employee with no dependents.

GROSS INCOME
🏙️ IL TAX
🎸 TN TAX
SAVINGS
10-YEAR
$30,000
$1,340
$0
$1,340
$13,400
$50,000
$2,330
$0
$2,330
$23,300
$75,000
$3,568
$0
$3,568
$35,680
$100,000
$4,805
$0
$4,805
$48,050
$150,000
$7,280
$0
$7,280
$72,800
$200,000
$9,755
$0
$9,755
$97,550
$250,000
$12,230
$0
$12,230
$122,300
$250,001 (exemption lost)
$12,375
$0
$12,375
$123,750
$500,000
$24,750
$0
$24,750
$247,500
$100,000 + $400K home (statewide average property tax)
$12,325 (income $4,805 + property $7,520)
$2,080 (income $0 + property $2,080)
$10,245
$102,450
$150,000 + $500K home (statewide average property tax)
$16,680 (income $7,280 + property $9,400)
$2,600 (income $0 + property $2,600)
$14,080
$140,800
💡

CountryTaxCalc.com is reader-supported. When you use our partner links, we may earn a commission at no cost to you. This helps us provide free tax calculators and comparison tools.Learn more about our affiliate partnerships

Talk to a Real CPA

Taxhub

★ 4.8verified reviews  ·  3,758 reviews

Moving from Illinois to Tennessee? Multi-state returns are tricky—partial-year residency, different deadlines, avoiding double taxation. Get matched with a CPA who specializes in state moves. Virtual meetings, fixed pricing.

⚠ Not for simple single-state returns. Free filing is fine for straightforward W-2 situations.

Get Matched With a CPA →

Interested in reaching this audience? Advertise on CountryTaxCalc →

🏙️

Illinois Pros & Cons

+ PROS
  • Social Security and most retirement income are not taxed by Illinois (Illinois Department of Revenue, Schedule M instructions), though Tennessee also has no tax on wages or retirement income
  • The state grocery tax ended on 1 January 2026, so groceries are not subject to the 1% state grocery rate; some cities and counties have adopted a local 1% grocery tax (Illinois Department of Revenue, FY 2026-03)
  • Lower average combined sales tax than Tennessee outside Chicago: 8.98% versus 9.61% on the Tax Foundation July 2026 update
  • One flat 4.95% rate with a single $2,925 exemption, so the state income tax is easy to estimate for a single filer: (income minus $2,925) times 4.95% up to $250,000 AGI
− CONS
  • State income tax on wages: $4,805 at $100,000, $7,280 at $150,000 and $24,750 at $500,000 for a single filer, compared with nothing in Tennessee
  • The $2,925 exemption disappears above $250,000 AGI for single filers (Illinois Department of Revenue), so the state tax steps from $12,230 at $250,000 to $12,375 at $250,001, about $145 more
  • Statewide effective property tax rate of 1.88% on owner-occupied housing versus 0.52% in Tennessee (Tax Foundation 2026), about $5,440 more a year on a $400,000 home before local specifics
  • Chicago combined sales tax is 10.5% since 1 August 2026 (6.25% state, 1.75% Cook County, 1.25% Chicago, 1.25% transit tax after the NITA increase), above the Tennessee average of 9.61%
  • Estate tax: the Illinois Attorney General applies the Illinois estate tax above a $4,000,000 exclusion at rates from 0.8% to 16%; Tennessee repealed its inheritance tax for deaths after 31 December 2015 (Tennessee Department of Revenue)
🎸

Tennessee Pros & Cons

+ PROS
  • No state tax on wages: nothing to pay on $100,000 of salary where Illinois would charge $4,805
  • The Hall income tax on interest and dividends was repealed for tax periods beginning on or after 1 January 2021 (Tennessee Department of Revenue), so there is no state income tax return for typical employees and investors
  • Statewide effective property tax rate of 0.52% on owner-occupied housing (Tax Foundation 2026), and residential property is assessed at 25% of appraised value (Tennessee Comptroller)
  • No state inheritance tax: Tennessee repealed it for dates of death after 31 December 2015 (Tennessee Department of Revenue); the federal estate tax still applies above the federal exemption
− CONS
  • Sales tax: 7% state rate plus local rates, a 9.61% population-weighted average combined rate and the second highest in the US (Tax Foundation, July 2026), against Illinois 8.98%
  • Food is taxed in Tennessee at a reduced 4% state rate plus local tax (Tennessee Department of Revenue), while Illinois has no state grocery tax from 1 January 2026
  • A zero wage tax is not a zero tax bill: sales tax and property tax remain, and Tennessee has business-side taxes (such as franchise and excise tax) that we have not covered or verified here for self-employed readers
  • Illinois-source income stays taxable by Illinois for nonresidents (Schedule NR instructions), so a move does not by itself end tax on Illinois work or property
FAQ

Frequently Asked Questions

How much state income tax will I save moving from Illinois to Tennessee?

On a single filer with wages only in 2026, you save the whole Illinois bill: $2,330 at $50,000, $4,805 at $100,000, $7,280 at $150,000, $12,230 at $250,000 and $24,750 at $500,000. Tennessee does not tax wages. Figures are from the shared tax engine and exclude credits, itemized deductions and local taxes. Sales tax and property tax are covered separately.

Does Tennessee really have no tax on wages?

Yes. Tennessee levies no tax on wages. The former Hall income tax on interest and dividends was repealed for tax periods beginning on or after 1 January 2021, and the Tennessee Department of Revenue tells taxpayers not to file Hall returns for those years. Tennessee still has sales tax, property tax and business-side taxes such as franchise and excise tax, which we have not covered here.

What is the Illinois exemption phase-out?

Illinois allows a $2,925 personal exemption for 2026 but denies it entirely if federal AGI exceeds $250,000 for single filers ($500,000 for married filing jointly), per the Illinois Department of Revenue. In the engine a single filer pays $12,230 of Illinois tax at $250,000 and $12,375 at $250,001, about $145 more. It is a single step, not a gradual phase-out.

Is Tennessee sales tax higher than Illinois?

On average, yes. The Tax Foundation July 2026 update shows Tennessee at a 7.00% state rate and 9.61% average combined rate (second highest in the US) against Illinois at 6.25% and 8.98%. Chicago is higher than either average: 10.5% combined since 1 August 2026, after a 0.25 point transit tax increase (Illinois Department of Revenue, FY 2026-34). On $10,000 of taxable spending the averages differ by about $63; Tennessee also taxes food at a reduced 4% state rate plus local tax, while Illinois has no state grocery tax from 1 January 2026.

How does Chicago sales tax compare with Nashville?

Chicago is 10.5% combined: 6.25% state, 1.75% Cook County, 1.25% City of Chicago and 1.25% for the transit authority (the county and city components are not full-page verified). We have not verified Nashville's exact combined rate here; Tennessee's state rate is 7% plus local, with a 9.61% statewide average on the Tax Foundation update. Look up the rate for the exact address.

How do property taxes compare between Illinois and Tennessee?

The Tax Foundation reports statewide effective rates on owner-occupied housing of 1.88% for Illinois and 0.52% for Tennessee in 2026. On a $400,000 home that is about $7,520 versus $2,080 a year, a $5,440 gap. These are averages, not bills. Outside Cook County Illinois property is generally assessed at 33 1/3% of market value and Cook County assesses residential property at 10%; Tennessee assesses residential property at 25% of appraised value. Every bill depends on local rates and exemptions.

Is Illinois or Tennessee better for retirees?

On state income tax there is little difference: Illinois does not tax Social Security or most retirement income (Illinois Department of Revenue, Schedule M instructions) and Tennessee has no tax on wages and repealed the Hall tax. The difference for retirees is mainly property tax, sales tax and estate tax: Tennessee is lower on average property tax and has no inheritance tax, while its average sales tax is higher.

Does Illinois have a Chicago or Cook County income tax?

We did not find or verify a Chicago or Cook County income tax on wages, and our Illinois figures include none. The local layers we did verify are sales tax (Chicago 10.5% combined) and the Cook County property assessment level (10% for residential). Confirm any other local taxes with the City of Chicago Department of Finance or Cook County.

How is the estate tax different between Illinois and Tennessee?

The Illinois Attorney General administers an Illinois estate tax with a $4,000,000 exclusion and rates from 0.8% to 16%; legislation to change the exclusion has been introduced, so verify the current figure. Tennessee repealed its inheritance tax for dates of death after 31 December 2015 (Tennessee Department of Revenue). The federal estate tax exemption is $15 million for 2026 in both states.

Will I still owe Illinois tax after moving to Tennessee?

Possibly on Illinois-source income. Illinois taxes residents on all income and nonresidents on Illinois-source income, and part-year residents on income received while a resident plus Illinois-source income afterwards (Schedule NR instructions). Whether remote wages are Illinois-source depends on your facts, which we have not verified. We did not confirm a day-count test, so treat residency as a domicile question and get tax advice for the year of the move.

What is the total tax difference for a $100,000 earner with a $400,000 home?

About $10,245 a year in Tennessee's favor using statewide average property tax rates: Illinois $4,805 income tax plus $7,520 property tax equals $12,325; Tennessee $0 plus $2,080 equals $2,080. Sales tax, insurance, local fees and the actual property bill for the specific home are not included.
From the brief
US$2Mnet worth that triggers the exit tax
AT€100kdeferred gains: yearly proof from July
HU1%proposed wealth tax above 1bn forints
The Tax Brief · Subscribe free

More like this, every two weeks.

Verified rates, real after-tax figures, plain English. Free.

Bi-weekly. No spam. Unsubscribe in one click.