Relocation Guide · Illinois → Columbus
Moving from Illinois to Columbus
The reason to make this move is property tax, not income tax. Illinois already leaves your retirement income alone — so the real story is what you save on the house.
Get the direction right first
It is easy to assume any move to a flat-tax state is an income-tax win. For Illinois retirees, it is not — because Illinois already fully exempts retirement income. Illinois does not tax Social Security, pensions, or IRA/401(k) withdrawals. So on income tax, moving to Ohio is a step sideways or slightly backward, since Ohio taxes pensions and 401(k) withdrawals at its flat rate. The genuine prize is somewhere else entirely.
The real win: property tax. Illinois has some of the highest property taxes in the nation — effective rates commonly in the 2.0% to 2.3%+ range, and higher in many Chicago-area collar counties. Franklin County, Ohio runs about 1.69%. On a $450,000 home, that gap is roughly $1,400–$2,800 every year — the kind of savings that genuinely changes a retirement budget.
The trade, in dollars
| On a $450k home | Illinois (~2.1%) | Columbus Franklin (~1.69%) |
|---|---|---|
| Annual property tax | ~$9,450 | ~$7,605 |
| 10-year property tax | ~$107,000 | ~$86,000 |
| Retirement income tax | $0 (exempt) | ~2.75% on pension/401(k) |
So the honest framing is a swap: you give up Illinois’s zero tax on pension and 401(k) income (a few hundred to ~$1,000+ a year, depending on your draw), and in return you cut a property-tax bill that is among the highest in the country. For most retirees with a typical home and pension, the property-tax savings more than offsets the new income tax — but you should run your specific numbers, because a very large pension and a modest home could flip the result.
Choose your Ohio county carefully — or give back the win. If you move from high-tax Illinois into Delaware County (Powell, Lewis Center) at ~1.9%, you shrink the property-tax savings that motivated the move in the first place. To capture the full benefit, target Franklin County. The whole point is the lower rate; do not undo it with the county you pick.
Where Illinois movers should land
Franklin County, full stop — Grove City, Hilliard, Westerville, Gahanna — to lock in the property-tax relief that justifies the move. Layer on the Ohio 65+ homestead exemption if you qualify to push the tax line lower still. Save Delaware County for buyers chasing the Powell address with eyes open to the higher rate.
See your Illinois-to-Ohio swap in real dollars
Send your current property tax and pension/401(k) draw — we will show whether the swap nets out ahead for you.
Run my numbersTax rules in both states change and depend on your full financial picture. Confirm current figures and consult a tax professional before relocating. This is general information, not tax advice.