Compare taxes and see how much you save moving from Minnesota to Illinois
Minnesota and Illinois compete for title of the Midwest's highest-tax state — but they impose their burden very differently. Minnesota's progressive income tax reaches 9.85% at $193,240 (one of the highest state income tax top rates in the US). Illinois has a simpler 4.95% flat rate but compensates with property tax averaging ~2.08% — the highest effective rate in the Midwest and among the highest in the US. For a Minneapolis resident earning $100,000: Minnesota income tax approximately $5,720 vs Illinois $4,950 — Minnesota costs $770 more on income tax. But on a $300,000 home: Illinois property tax approximately $6,240/year vs Minnesota's $3,330. Illinois total burden at $100,000 income: approximately $11,190 vs Minnesota's $9,050 — Illinois costs approximately $2,140 more due to property tax dominating. The crossover is roughly at $500,000 income where Minnesota's 9.85% top rate makes it comparable to or more expensive than Illinois.
Top Rate (above $193,240)
Progressive 5.35% to 9.85%; 4 brackets; property tax ~1.11%; no city income tax
Flat Rate
Flat 4.95% income tax; highest property tax in Midwest ~2.08%; Chicago has no separate city income tax
At $100,000 income:
That is $175/month back in your pocket!
| Income | MN Tax | IL Tax | Savings | 10-Year |
|---|---|---|---|---|
| $60,000 | $3,282 MN income tax (~5.47% effective); ~$2,220 property ($200K × 1.11%) = ~$5,502 total | $2,970 IL income tax (4.95%); ~$4,160 property ($200K × 2.08%) = ~$7,130 total | MN saves ~$1,628 | $16,280 |
| $100,000 | $5,720 MN income tax (~5.72% effective); ~$3,330 property ($300K × 1.11%) = ~$9,050 total | $4,950 IL income tax (4.95%); ~$6,240 property ($300K × 2.08%) = ~$11,190 total | MN saves ~$2,140 | $21,400 |
| $150,000 | $9,420 MN income tax (~6.28% effective); ~$4,440 property ($400K × 1.11%) = ~$13,860 total | $7,425 IL income tax; ~$8,320 property ($400K × 2.08%) = ~$15,745 total | MN saves ~$1,885 | $18,850 |
| $200,000 | $14,270 MN income tax (~7.14% effective); ~$5,550 property ($500K × 1.11%) = ~$19,820 total | $9,900 IL income tax; ~$10,400 property ($500K × 2.08%) = ~$20,300 total | Essentially equal; MN slightly better | $2,500 |
| $400,000 | $34,240 MN income tax (~8.56% effective); ~$7,770 property ($700K × 1.11%) = ~$42,010 total | $19,800 IL income tax; ~$14,560 property ($700K × 2.08%) = ~$34,360 total | IL saves ~$7,650 at high incomes | IL better above ~$300K |
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
Moving between Minnesota and Illinois? Minnesota's progressive rates, Social Security taxation, and partial-year returns require specialist guidance. Get matched with a CPA who specialises in Midwest state moves.
Get Matched With a CPA →The crossover depends on home value. For a $400,000 home (typical Twin Cities or Chicago suburban purchase): Minnesota becomes more expensive than Illinois at approximately $200,000–250,000 annual income (where Minnesota's progressive rate starts significantly exceeding Illinois's flat 4.95% by more than the property tax saving). For a $600,000 home (luxury suburban purchase): the crossover is higher — approximately $300,000–350,000 income, since the property tax saving is larger. The general rule: the higher your home value relative to income, the more likely Minnesota is cheaper. For high-earning renters, Illinois is almost always cheaper than Minnesota on total state and local income tax.
Illinois's high property tax (~2.08% effective rate) has several structural causes: (1) Illinois relies heavily on local property taxes to fund public schools, with limited state-level equalization; (2) the fragmented local government structure (Illinois has over 7,000 taxing districts — school districts, park districts, library districts, fire protection districts — each levying their own taxes on the same property); (3) escalating pension obligations for public school teachers and local government employees are funded largely through property taxes; (4) Chicago and Cook County face particular fiscal pressure from population decline and commercial property reassessments. Suburban Cook County homeowners often pay effective rates of 2.0–2.5%, with some townships exceeding 3%.
Yes — Minnesota is one of the few states that taxes Social Security benefits. Minnesota does, however, provide a subtraction that exempts a portion of Social Security income for lower-income filers. For 2024: the subtraction phases out between $75,000–$105,000 AGI (single) and $95,000–$145,000 (married filing jointly). Retirees below these thresholds may partially or fully exempt Social Security from MN tax. Above the phase-out thresholds, Social Security is fully taxable at Minnesota's progressive rates. Illinois, by contrast, does not tax Social Security benefits and also exempts pension income for state and local government employees.
At $100,000 income as a homeowner: Minneapolis (MN) approximately $9,050/year in state income + property taxes vs Chicago suburban (IL) approximately $11,190/year. Minneapolis is roughly $2,000–2,500/year cheaper in taxes at this income level. However, Chicago's housing market diverges significantly by location — Chicago proper vs suburban Chicago costs vary enormously. Minneapolis has lower housing costs overall vs the Chicago metro (median Twin Cities home ~$340,000 vs Chicago suburban median ~$375,000). Combined with Minnesota's lower property tax, Minneapolis-area total housing carrying costs are materially lower than comparable Chicago suburban locations despite Minnesota's higher income tax rates at middle incomes.
The prospects for meaningful Illinois tax reform are limited. The failed 2020 constitutional amendment (which would have allowed progressive income tax) resulted from widespread concern that it would open the door to higher taxes on moderate earners. Illinois's flat 4.95% rate is constitutionally protected unless another amendment passes — a high bar. Property tax reform has been proposed repeatedly but faces resistance from the thousands of local taxing bodies that depend on those revenues and the pension system that requires ongoing funding. Illinois's fiscal situation (pension debt, bond ratings) makes tax reductions extremely difficult to finance. Short-term property tax freezes have been discussed but not implemented. Compared to Minnesota — which also has no reform trajectory — both states are relatively static tax environments.