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Moving from Illinois to Nashville

Illinois buyers pay a flat 4.95% income tax with no retirement exclusion and some of the highest suburban property taxes in the Midwest. Tennessee eliminates both.

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IL vs Tennessee — The Tax Comparison

FactorIllinoisTennesseeNotes
State income tax (IL)4.95% flat — no retirement exclusion$0IL taxes pension, IRA, SS equally at 4.95%
State income tax (TN)$0Zero — no calculation, no exclusion to manage
Property tax — $500K home$6,000–$13,000/yr (Cook/DuPage/Lake Co.)$2,750–$3,250/yr (Wilson Co.)Naperville/Schaumburg often $9,000–$13,000/yr
Property tax protectionSenior freeze available but income-limitedTN freeze at $63,470 (Wilson Co.)TN freeze is more comprehensive and higher-income
Homeowners insurance~$1,800–$3,000/yr~$1,400–$3,000/yrComparable

What a Typical Chicago Suburbs Couple Saves in Year One

Annual savings estimate

State income tax savings ($90K retirement income)$4,455
Property tax savings ($550K home, DuPage County)$5,000–$9,500
Combined annual savings$9,455–$13,955
20-year cumulative savings$189,000–$279,000

Illinois charges a flat 4.95% income tax with no exemption for retirement income — meaning every dollar of your IRA withdrawal, pension, or Social Security is taxed at the same rate as earned income. Tennessee's zero. A couple drawing $90,000 per year saves exactly $4,455 annually, every year, without needing to track exclusion thresholds or phaseouts.

DuPage, Lake, and Cook County property taxes on a $500,000–$700,000 home often run $9,000–$13,000 per year. The Wilson County equivalent is $2,750–$3,900. BNA airport with direct Chicago service (O'Hare and Midway) means IL buyers can stay connected to family without the move feeling like a disappearance.

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IL equity range: $250K–$800K. What it buys in Nashville:

The Tennessee Property Tax Freeze

Wilson County freeze limit: $63,470. Most IL retirees with Social Security plus modest pension fall within this threshold.

The freeze requires annual reapplication with your county Trustee's office. It is not automatic — and it is the most commonly forfeited financial benefit in the Nashville 55+ market. Put it in your calendar from day one of ownership.

Run Your IL to TN Numbers

Tell us your Illinois home value, target purchase price, and retirement income — we will build the full tax comparison and community recommendation for your situation.

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