Illinois exempts all retirement income from state tax — Social Security, pensions, IRAs, 401(k)s. No thresholds, no age limits beyond retirement income designation. But property taxes average $8,000–$12,000/year on a $400K home. Here is the real math on both sides.
Have questions about what you're reading? A specialist can walk you through real costs, honest comparisons, and what's actually available right now — free, no obligation.
Talk to a Specialist →Illinois exempts 100% of retirement income from state income tax. A couple pulling $120,000/year from Social Security, a pension, and IRA distributions pays $0 in Illinois income tax on that income. Move to Arizona and that same income triggers state tax of roughly $2,800–$3,000/year. The counterintuitive truth: staying in Illinois can beat moving to a "low-tax" Sun Belt state if your retirement income is high and your home is modest.
40+ active adult communities spanning Cook, DuPage, Kane, Will, Lake, McHenry, Kendall, and DeKalb counties
Effective rates vary significantly across Chicago suburbs — the county you choose matters as much as the community
We connect buyers with agents who know this market from the inside — real cost math, honest comparisons, and what's actually happening right now. Every agent is personally vetted by the Nova55Living founder. No scripts, no pressure.
What does a $400,000 home actually cost per year depending on which county you buy in?
| County | Effective Rate | Annual Tax (Low) | Annual Tax (High) |
|---|---|---|---|
| DuPage | 1.8–2.2% | $7,200 | $8,800 |
| Cook | 2.0–2.5% | $8,000 | $10,000 |
| McHenry | 2.0–2.4% | $8,000 | $9,600 |
| Will | 2.0–2.5% | $8,000 | $10,000 |
| Kane | 2.2–2.6% | $8,800 | $10,400 |
| Kendall | 2.3–2.7% | $9,200 | $10,800 |
| DeKalb | 2.1–2.5% | $8,400 | $10,000 |
| Lake | 2.2–2.8% | $8,800 | $11,200 |
| Scenario | Illinois (DuPage) | Arizona (Maricopa) |
|---|---|---|
| Retirement income ($120K/yr) | $0 IL state income tax | ~$2,800 AZ income tax |
| Property tax ($350K home) | ~$7,000–8,750/yr | ~$2,100–2,800/yr |
| Total estimated tax burden | $7,000–8,750 | $4,900–5,600 |
| Difference | Arizona wins — IF your home price is comparable | |
The Illinois advantage narrows when home prices are similar and retirement income is high. It flips to Illinois's favor if you keep a modest Illinois home and have significant pension/IRA income. Run your own numbers.
Four programs reduce the tax burden for eligible seniors. Know all four before you buy.
Freezes your property's Equalized Assessed Value for homeowners 65+ with household income under $65,000. Must re-apply annually with your county assessor. Does not freeze the tax rate — only the assessment. If rates rise, your bill still rises.
The state pays your property tax bill as a loan at 5% annual interest. Repaid when the home is sold or passes through the estate. Provides immediate cash flow relief for income-constrained seniors who want to stay put.
Income-based rebate program providing up to $700/year for eligible seniors. Amounts vary based on income and property tax burden. Apply through the Illinois Department on Aging.
Reduces EAV by $10,000 in Cook County and approximately $6,000 in collar counties. Applied automatically once you establish primary residence — no annual renewal required. Worth $200–600/year in actual tax savings depending on your tax rate.
Each collar county has its own dedicated corridor guide with deeper community and tax comparisons than fit on this hub page
Lake County Corridor GuideSaddlebrook Farms, Lake Barrington Shores, Grand Dominion, and the highest-tax county in the metroKane County Corridor GuideEdgewater, Lincoln Prairie by Del Webb, and the Aurora/Elgin corridorWill County Corridor GuideCarillon, Carillon Lakes, Shorewood Glen, Lago Vista, and Grand HavenMcHenry County Corridor GuideSun City Huntley, the metro's mega-community, and the surrounding exurbsDuPage County Corridor GuideCarillon Club, Cameo, and the lowest effective tax rates in the metroCook County Corridor GuideRob Roy Country Club Village, The Pines, and Cook's unique 10% assessment ratioSeven communities share the Carillon name across the metro — they are completely separate developments with different builders, prices, and HOA structures
Which Carillon Is Right for You? — Full Side-by-Side ComparisonCarillon (Plainfield), Carillon Lakes, Carillon Club, Carillon at Stonegate, Carillon at Cambridge Lakes, Carillon North, Carillon at Heatherstone — all compared by county, HOA, price, size, and gated statusOur agent partners know which communities have waitlists, which HOA budgets are underfunded, and which counties offer the best senior tax relief. Free, no-pressure consultation.
Get ConnectedConnect with a specialist who knows this market from the inside — real cost math, honest community comparisons, and what's actually happening right now. Every agent is personally vetted by the Nova55Living founder.
Connect with a Specialist →