Illinois does not charge a departure fee to move to Texas or Florida. Leavers should focus on flat 4.95% income tax while resident, part-year allocation, and property tax in collar counties — not a mythical “Illinois exit tax.”
What is enforced today
Flat income tax on residents
Illinois taxes all taxable income at 4.95% while you are a resident — simpler than CA/NY brackets but applied to every dollar.
Chicago: no local wage tax
Chicago does not levy a local wage income tax. Select Chicago in our income calculator — city/local tax shows $0; only state tax applies.
Part-year and sourcing
- Split-year returns when you move out mid-year
- Deferred compensation and business income may retain Illinois sourcing for work performed as a resident
- Selling a Chicago-area home triggers federal + state capital gains considerations
Property tax
Cook and collar counties often exceed our state-average property tax assumptions — edit the property calculator manually or use Chicago in Home Prices.
What is not in effect
| Item | Status |
|---|---|
| Graduated income tax (post-2020 vote) | Not enacted |
| Broad exit surcharge | Does not exist |
See pending Illinois proposals.
Checklist for Illinois leavers
- Run all four calculators — IL savings vs. TX often ~$19,600+/yr on defaults (summary)
- Plan the move year with a CPA — part-year returns
- Document domicile in the new state before liquidity events
- Compare Florida for retirees — verify pension taxation with an advisor
Next: Illinois relocation guide · Estimate savings
Run your numbers before you move
Estimate income, property, sales, and living-cost savings with our free calculators — then talk to us about the move and getting your business running on day one.