The complete financial comparison for IL buyers considering active adult communities in Lee and Collier County — income tax, property tax, and what the numbers actually look like after the move.
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Talk to a Specialist →Illinois has the second-highest property tax rate in the nation. Chicago-area buyers from Cook, DuPage, and Lake Counties pay $10,000–$20,000+/year in property taxes on retirement homes. The 4.95% flat income tax applies to all income including IRA distributions and pension income — unlike neighboring Indiana which exempts some pension income.
State income tax: 4.95% flat rate on all income → Florida: 0%. Effective property tax rate: 2.27% (2nd highest in US) → Lee County ~1.10%, Collier County ~0.75%. Annual property tax on $600K IL home: approximately $13,620/yr on $600K home → Lee County ~$5,990–$6,510 → Collier County ~$4,020–$4,920. Estimated annual income tax savings: $3,960/yr on $80K retirement income. Florida has no estate tax, no inheritance tax, and no tax on Social Security, pension income, or IRA distributions.
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Illinois does not aggressively audit domicile changes the way NY or NJ does, but maintaining an Illinois home while claiming Florida domicile can result in dual residency for tax purposes. Take the same steps: 183+ days in Florida, FL driver's license, FL voter registration, updated estate documents. To establish Florida domicile: spend 183+ days per year in Florida, obtain a Florida driver's license, register vehicles in Florida, register to vote in Florida, file a Declaration of Domicile with your Florida county clerk, and update wills, trusts, and estate documents. Work with a tax professional before your first Florida tax year.
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