Illinois Homeowners Fleeing To Other Low Taxed States

This guide covers why Illinois homeowners flee to other states with low taxes and affordable housing. Illinois continued to lose thousands of individual taxpayers and businesses in 2024, and the trend is expected to continue at an alarming rate. With a major increase in remote workers in the labor force, high-taxed states like Illinois, New York, and California are expected to have a mass exodus of taxpayers and small businesses.

Unfortunately, Illinois’s governor, JB Pritzker, thinks that increasing existing taxes and creating new taxes solves the state’s financial crisis. Granted, Illinois is one of the most beautiful states in the nation and a central hub to commerce, manufacturing, government, the arts, and education.

However, people are not dumb. Taxpayers now have a say in what city and state to live in due to the mass remote job opportunities in the labor force. Governor JB Pritzker said the state is losing population due to young millennials leaving Illinois to study in other states. No doubt, Pritzker is in a state of denial. New leadership is for Chicago and Illinois. In the following paragraphs, we will cover Illinois homeowners fleeing to other low-taxed states.

Illinois Homeowners Fleeing to Other Low-Taxed States

Illinois homeowners are leaving for lower-taxed states because of the state’s heavy tax burden. The State of Illinois has the second-worst property tax rate in the country. In 2022, Illinois’s median annual property tax was $5,055, almost double the US median of $2,457. In Lake County, for instance, the median property tax is around $8600. In Round Lake Beach, modest homes valued at $100,000 are charged $8,500 in taxes annually. In addition to property tax, Illinois does poorly in overall tax burden, having the 10th highest state and local tax burden. John Strange of GCA Forums Mortgage Group says the following about Illinois homeowners fleeing to other states:

Other taxes include steep personal and corporate income, sales, and the highest state and local cellphone taxes. Census data and reports from moving companies shed light on this exodus. Between 2021 and 2022, Illinois lost 142,000 residents, second only to New York in population decline.

Over the last ten years, the state has experienced an outmigration of more than 850,000 people, with 2020 being the worst year since World War II. High taxes are cited as the primary reason for leaving, and a 2016 poll showed 37% of Illinoisans blamed taxes as their motivation to move. It is especially wealthy residents leaving the state faster, having taken an estimated $32 billion in income with them since 2010.

What States Are Illinois Homeowners Fleeing to

Tennessee, Florida, Alabama, Georgia, Indiana, Mississippi, and Kentucky are popular. Suburban Chicago residents pay $8,500 in property taxes, while Munster, Indiana, residents pay an average of $3,200 for similar homes. Texas recently overtook Florida as the State where most Illinois residents move, while Indiana remains popular among out-of-state movers and Illinois residents looking to relocate. While home prices are climbing, Florida remains attractive due to having no state income tax and a lower overall tax burden. Danny Vesokie of Affiliated Financial Partners, Inc. says the following about what states Illinois homeowners are fleeing to:

Upon receiving feedback on gas, sales, and income taxes, along with Governor J.B. Pritzker’s proposed progressive tax system, it’s apparent that there has been considerable backlash from the public.

Critics of the governor’s tax policies are concerned that raising taxes without any cuts to state spending, such as deepening the $241 billion pension debt, will result in an outflow of taxpayers and businesses. Stagnant home values, coupled with slower-than-average appreciation of housing prices in Illinois, are making homeownership increasingly less attractive than in other states.

Some argue that it’s much more than the taxes that are causing the issue. Demographers suggest job opportunities often draw many younger residents in their 20s and 30s away. The ever-so-frigid winters and crime rates in Chicago are also contributing factors. That said, there is minimal contention regarding the’ impact of taxes, especially for retirees or fixed-income homeowners who struggle with everyday surging living costs. Users on X cite rising property taxes and the overall burden as the main reasons for relocating to states, such as Tennessee and Texas, which have no income tax.

Steering away from Illinois completely, the lack of infrastructure to resolve the high taxes, along with policies to assist the economy, leaves homeowners no choice but to relocate to states with significantly lower taxes.

High Taxes And Incompetent Leadership Main Reason For Illinois Homeowners Fleeing: Mass Illinois Exodus

Illinois is a great state. I grew up in Chicagoland and consider Illinois home, although I now live in another state. Chicago is ethnically diverse. Chicago and its surrounding suburbs have the finest restaurants of all nationalities. Downtown Chicago is one of the most beautiful places in the country, if not the most beautiful. Home to the Sears Tower, the John Hancock, and the Standard Oil Building. Millions of tourists visit Chicago and its surrounding suburbs for tourism and business. Chicago is home to the best hotels. Bordering Lake Michigan, the city has countless waterfront housing options where Chicagoans enjoy boating and the finest beaches.

Incompetent Leadership And High Taxes Are Making Illinois Homeowners Flee to Other States

Illinois Homeowners are fleeing to other states with lower taxes. The state has spiraled out of control economically. This is due to incompetent politicians who do not understand fiscal and financial responsibility. The state has one of the top deficits, and politicians want to tax everything they can think of. Property taxes in Chicago and surrounding suburbs are going up year after year. Many homeowners are now calling enough is enough, and Illinois Homeowners. Fleeing to a State with lower taxes. It is not property taxes, but sales and income taxes that are out of control in Illinois. Many still consider Illinois home and are hoping for change.

States Illinois Homeowners Fleeing To

The coronavirus pandemic has changed the business models of most American companies. Most businesses have strongly pushed for remote job opportunities for their employees. One of the greatest benefits of being a remote worker is that remote employees do not have to report to a brick-and-mortar location. Therefore, they can live anywhere they want. They are no longer tied to living in a highly taxed city, county, or state with a high cost of living. This is what is happening in Illinois. Many Illinois Homeowners are fleeing the State to neighboring Indiana, Michigan, Ohio, Kentucky, and Tennessee. Other popular states, such as Illinois, are home to Homeowners Fleeing to states with low taxes, like Florida, Texas, Georgia, Mississippi, Colorado, Pennsylvania, Alabama, and North Carolina. Many Illinois Homeowners are fleeing the State for Kentucky. 

Illinois Homeowners Fleeing To Florida

Florida used to lead the Illinois Homeowners Fleeing State. Florida is still a great place to live. However, home prices have gone up exponentially. Home prices in Florida have appreciated by double digits since 2012.

Will Illinois Go Bankrupt Or Resolve Its Financial Crisis

Gustan Cho Associate is a national direct lender licensed in multiple states with no overlays. We have countless Illinois homeowners leaving the state monthly. We see this monthly, and the exodus has been getting worse recently. In 2016, the number of Illinois Homeowners Fleeing the State was over 40,000 residents. Numbers for 2017 are not out yet, but it is supposed to surpass the 2016 Illinois Homeowners Fleeing State by more than 25%. This will put Illinois’ population at its lowest level in nearly a decade. Illinois Homeowners Fleeing State ranks the highest among other states, losing more residents than any other state in the past 3 years. The data on the number of residents lost in 2017 in the state will not be ready until December 2018.

Why Illinois Is So Broke And Has A Financial Mess Worse Than Any Other State

Many who left Illinois state did so for various reasons. The two biggest reasons cited by most were the state taxes and the state’s financial crisis and shortfall year after year.

Why Illinois Homeowners Are Fleeing the State And Moving To Other Low-Taxed States

The main reason people consider moving to another state is employment. They normally do not move because of the state’s financial health or due to higher state taxes. Most people who are moving are in their 30s and are moving to enhance their employment opportunities.

When data reflect that more folks are moving out of a state than into it, it normally suggests that employment and/or career opportunities are elsewhere. However, another main reason Illinois loses mass residents to other states is high tax rates. Higher taxes affect the housing market.

Illinois is a mess; politicians still seem not to have gotten their acts together. Higher taxes drive businesses out of the state. Politicians keep on increasing property taxes, state income taxes, and sales taxes. The weak economy in Chicago and the suburbs, the government fiscal mess, and increasing taxes drive residents to neighboring states like Indiana, Michigan, Ohio, Kentucky, Missouri, Iowa, and Tennessee.

Illinois Homeowners Fleeing State: Affordable Housing Becoming Hard To Find

Many Illinois home buyers are being priced out of the market. They are not being priced out of the market because of housing prices, but because of property taxes. For example, many homes in Round Lake Beach, Illinois, are priced in the $100,000 to $150,000 range. However, Round Lake, Illinois, property owners pay three times the national average in property taxes. Average property taxes in Round Lake Beach, Illinois, are $8,000 compared to similar homes in Indiana, which are $2,340. This often drives homeowners and home buyers to relocate to other states with lower property taxes. Many cities and towns in Illinois increase property taxes often. Many homeowners with fixed income are being forced out of their homes.

Illinois Homeowners Fleeing State: Home Builders Steering Away From Illinois

Home Builders are thriving. Most homes sell out once the developer has lots permitted. However, home construction is being affected in Chicago and the surrounding suburbs due to the financial mess in Illinois. Before the 2008 real estate collapse, 40,000-plus new homes were being built in Illinois. Today, no more than 12,500 homes are built. This number will decrease in the years to come. This slowdown in home construction affects state revenues, thus negatively impacting the state’s revenues and hurting city and country governments.

Indiana Reaping Reward From Illinois Homeowners Fleeing State

Many Illinois Homeowners are fleeing the State to its neighbor, Indiana. Lake County, Indiana, has experienced explosive housing growth due to Illinois homeowners fleeing the state. The number-one reason Illinois homeowners flee the state to Indiana is property taxes. Northwest Indiana has seen an increase of 18% in housing construction. This increase is mainly due to Illinois Homeowners Fleeing the State of Illinois.

Housing Boom Throughout The United States

The housing boom continues except for about a dozen states, including Illinois. Due to rising home prices, FHFA and HUD have increased loan limits on conventional and FHA loans for the past three years.

Many metropolitan areas are seeing all-time high housing prices.

This is not the case in Chicago and its surrounding suburbs, where home prices are either flat or declining, and property taxes are increasing. Chicago and its surrounding areas are one of the few areas in the United States where homeowners have underwater mortgages. It’s not just property taxes that are increasing in Illinois. The state legislature recently increased individual income taxes from 3.75% to 4.95%. 

Illinois Homeowners Fleeing the State Of Illinois To Florida

A large percentage of Illinois homeowners have a second home in Florida. Many are concerned about Illinois and are considering moving to Florida and becoming legal Florida residents. One of the factors that Illinois Homeowners flee to warm climate states like Florida is to adapt to a different lifestyle. Will they enjoy hot, warm weather all year round? Many people like me enjoy the four seasons. Thanksgiving and Christmas are cold weather and snow to me and many others. Homes in Florida do not have basements. Snakes and alligators are common in Florida. It is one thing to vacation in hot climate states, but would you enjoy living there all year?

UPDATE on Illinois Homeowners Fleeing To Other Low-Taxed States

Homeowners in Illinois are moving away to places with lower taxes and a cheaper cost of living. This tendency includes high property costs, an expensive standard of living, and the need for a good business environment. Below is an elaborate look at the causes of Illinois residents’ migration as well as their preferred destinations:

Grounds For Shifting: High Property Taxes

Illinois has among America’s most costly land rates and high taxation rates. This makes it hard for owners who cannot handle such expenses to opt for states with lighter tax burdens.

Expensive Standard Of Living

The overall cost of living, especially in cities like Chicago in Illinois, is much greater than in many other parts of the country, making housing or utilities cheaper elsewhere. This makes it attractive for people looking to move out.

Economic Opportunities

States with booming job markets and strong economies, such as Texas, Florida, Tennessee, etc., entice those from Illinois to seek better employment and economic growth.

Quality Of Life:

Some individuals relocate because they want a better quality of life, which can be brought about by favorable climatic conditions and less crowdedness, among other things associated with this change.

Illinois Homeowners Fleeing to: Favorite Relocation Spots

Illinois Homeowners Fleeing To Texas

This state tops the list of places where most people from Illinois settle after leaving home since no income tax is charged here, and the cost of living is relatively low, while job opportunities abound​​​.

Illinois Homeowners Fleeing To: Florida

Florida has warmer weather throughout the year than any other US state, and no personal income tax is imposed on its residents. Furthermore, reasonably affordable property rates compared to those prevailing in Illinois make Florida a perfect choice for retirees and working-class citizens from this part of America​​​.

Illinois Homeowners Fleeing To: Tennessee

No taxes are levied on salaries earned through employment, so workers keep all their wages intact, unlike back home. Also, the total tax burden is quite light here, mainly due to the absence of State Income Tax. Among other cities within Tennessee, Nashville has been experiencing rapid economic growth and rich cultural heritage amenities such as museums and theaters that attract many visitors yearly​​​.

Illinois Homeowners Fleeing To: Indiana

Some people prefer living close by; hence, they choose Indiana over any other state near Illinois since they don’t have to travel long distances. Indiana also offers lower property taxes, which can work well for those who still want some connection with their former residents but need cheaper options at times​​​.

Illinois Homeowners Fleeing to: Impacts On Illinois

Illinois is steadily losing its population, leading to lower tax revenues for public services. The exodus could also negatively affect real estate values, making it difficult for the government to provide basic needs. Therefore, this situation must be resolved if new inhabitants are to be attracted while retaining current ones. This breaking news article, “Illinois Homeowners Fleeing,” was rewritten and updated on May 12th, 2025.