Illinois vs Florida Taxes
Compare the total tax burden between Illinois (4.95% flat) and Florida (no income tax). Enter your income to see which state saves you more.
Illinois vs Florida: Escaping the flat tax plus property tax double hit
Illinois to Florida has become one of the nation's most active migration corridors, driven by a unique double burden: Illinois combines a 4.95% flat income tax with the second-highest property taxes in America (effective rate ~2.07%). Florida counters with zero income tax and property taxes averaging just 0.80%. For Illinois homeowners, the combined savings of moving to Florida can be staggering—often exceeding $10,000 per year for middle-income families.
The property tax story is what sets this comparison apart from other Florida migration routes. A home assessed at $350,000 in Cook County, Illinois, faces an annual property tax bill of roughly $7,200-$10,500 (depending on the specific municipality). The same-value home in a typical Florida county pays about $2,400 after the homestead exemption. That $5,000-$8,000 property tax gap stacks on top of the income tax savings, creating a financial case that's hard to ignore.
Illinois's fiscal instability amplifies the urgency. With over $200 billion in unfunded pension liabilities and some of the lowest credit ratings among U.S. states, many residents fear future tax increases. Illinois has already raised its income tax rate multiple times (from 3% to 5% in 2011, then to 4.95% in 2017), and proposals for a progressive tax structure have been floated repeatedly. Florida's constitutional ban on personal income tax provides a certainty that Illinois simply cannot offer.
Key Differences Beyond Income Tax
| Category | Illinois | Florida |
|---|---|---|
| Property Tax | Effective rate ~0.80% with $50,000 homestead exemption | Effective rate ~2.07%; Cook County among highest in nation; rates frequently increase |
| Sales Tax | Base rate 6%, combined up to 7.5%; no tax on groceries | Base rate 6.25%, combined up to 11% in Chicago; groceries taxed at reduced 1% rate |
| Fiscal Stability | No state income tax (constitutional ban); strong population growth; robust rainy day fund | $200B+ unfunded pension liabilities; multiple credit downgrades; population declining since 2014 |
| Retirement Income | No state income tax on any income | All retirement income (Social Security, pensions, 401k/IRA) fully exempt from state income tax |
| Cost of Living | South Florida expensive; Central/North Florida comparable to or cheaper than Chicago suburbs | Chicago metro affordable for a major city, but taxes significantly increase effective cost of living |
Who Benefits from Moving?
Chicago homeowners tired of the property tax burden
A family with a $400,000 home in suburban Cook County pays roughly $8,300 in property taxes. The same home in a Florida suburb would cost about $2,800 after homestead exemption—a savings of $5,500. Add income tax savings of $5,940 on $120,000 income, and the total exceeds $11,000 per year.
Illinois retirees choosing their next chapter
Illinois exempts retirement income from state tax, so retirees don't save on income tax by moving to Florida. But the property tax savings alone justify the move for many: downsizing from a $350K Illinois home to a $350K Florida home saves $4,400+ annually in property taxes.
Young professionals and remote workers
A single professional earning $85,000 saves $4,208 in state income tax by moving to Florida. Combined with lower property taxes on a starter home or condo, the total savings can fund a significant boost to retirement contributions or student loan payoff.
Bottom line: At $150,000 income, moving from Illinois to Florida saves $7,425 in income tax. Add the property tax savings on a $350,000 home (~$4,400), and the annual financial advantage exceeds $11,800.
Tax at Different Income Levels
| Income | Illinois Total Tax | Florida Total Tax | Annual Savings |
|---|---|---|---|
| $75,000 | $16,619 | $13,687 | Save $2,933 |
| $100,000 | $25,269 | $21,099 | Save $4,170 |
| $150,000 | $43,187 | $36,542 | Save $6,645 |
| $200,000 | $60,006 | $50,885 | Save $9,120 |
Based on single filer, standard deduction, 2025 tax year. Includes federal income tax, state income tax, and FICA.
Why the difference
You'd save $4,170/year ($348/month) in Florida vs Illinois.
Tax structure
Illinois has a flat 5.0% state income tax, while Florida has no state income tax.
Effective rate at your income
At $100,000, Florida's effective state rate is 0.0% vs 4.2% in Illinois — a 4.2 percentage point gap.
Tip: The flat 4.95% rate means your effective state tax rate is close to 4.95% regardless of income — no progressive bracket benefit. Property taxes in Cook County (Chicago) can exceed $6,000-$10,000 on a median-value home.
Tip: No state income tax means your take-home pay is among the highest nationally. Florida does not tax retirement income, Social Security, or investment income at the state level, making it one of the most tax-efficient states for retirees and investors.
Understanding Each State
Illinois
Illinois has a flat income tax rate of 4.95% on all taxable income. While the rate is moderate compared to states like California or New York, Illinois's high property taxes (average ~2.08%, second-highest nationally) significantly increase the total tax burden, particularly for homeowners.
Tip: The flat 4.95% rate means your effective state tax rate is close to 4.95% regardless of income — no progressive bracket benefit. Property taxes in Cook County (Chicago) can exceed $6,000-$10,000 on a median-value home.
Florida
Florida has no state income tax, funded instead by a 6% state sales tax (plus local additions up to 2%) and property taxes. This makes Florida especially attractive for high earners and retirees. Florida's population has grown rapidly, partly driven by tax migration from high-tax states like New York and California.
Tip: No state income tax means your take-home pay is among the highest nationally. Florida does not tax retirement income, Social Security, or investment income at the state level, making it one of the most tax-efficient states for retirees and investors.
Key Comparison Points
Income tax structure: Illinois has a flat income tax (4.95% flat), while Florida has no state income tax.
Beyond income tax: State tax comparisons should also consider property tax rates, sales tax, and cost of living. A state with no income tax may have higher property or sales taxes that offset the savings.
SALT deduction cap: Under OBBBA (2025+), the federal SALT cap is $40,000, phasing out above $500,000 MAGI toward a $10,000 floor. This limits the federal tax benefit of living in a high-tax state, so the gross state tax difference remains close to the net difference for most earners — especially high earners inside the phaseout.
Frequently asked questions
Is it cheaper to live in Illinois or Florida?
Based on income tax alone, Florida has a lower tax burden. At $100K income, you'd save $4,170 annually in Florida compared to Illinois. However, total cost of living also depends on property taxes, sales taxes, and housing costs.
How much would I save moving from Illinois to Florida?
A single filer earning $100,000 would save approximately $4,170 per year in total taxes by living in Florida instead of Illinois. At $150,000 income, the savings change to $6,645 per year.
What is the income tax rate in Illinois?
Illinois has a flat income tax with rates of 4.95% flat.
What is the income tax rate in Florida?
Florida has no state income tax.
Does Florida have income tax?
No, Florida does not levy a state income tax. Residents pay only federal income tax and FICA. However, Florida may have higher property taxes or sales taxes to compensate.