Moving from Illinois to Northern Nevada

Here's the counterintuitive part most Illinois retirees get wrong: moving to Nevada saves you essentially nothing on income tax — because Illinois already exempts your retirement income. The real money is somewhere else entirely.

The mistake to avoid: "Nevada has no income tax, so I'll save big." Illinois has a flat 4.95% income tax but fully exempts retirement income — Social Security, pensions, and 401(k)/IRA withdrawals are all untaxed in Illinois. So a typical Illinois retiree is already paying $0 in state income tax on retirement income. Moving to Nevada changes that by zero. If someone tells you you'll save thousands on income tax, they don't understand Illinois.

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The real prize: Illinois property taxes

Illinois has among the highest property taxes in the nation — effective rates around 2% of home value, and well above that in many Chicago-area counties. This is what you escape. Nevada's effective property tax runs roughly a quarter to a third of Illinois's, and it's capped at 3% annual growth once you file the owner-occupancy form.

Home valueIllinois property tax (~2%)Nevada (~0.5–0.6%)Annual saving
$400,000~$8,000~$2,200~$5,800
$600,000~$12,000~$3,300~$8,700

Illinois rates vary widely by county; Nevada figure reflects typical effective rate on a resale with depreciated taxable value. Illustrative.

And an estate-tax escape. Illinois has a state estate tax with a $4 millionexemption (no inflation indexing) — which, with home equity and retirement savings, catches more estates than people expect. Nevada has no estate or inheritance tax. For Illinois retirees with significant assets, this can matter as much as the property-tax savings.
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The honest full picture

  • Income tax: roughly a wash — both effectively $0 on retirement income.
  • Property tax: big win for Nevada — this is the headline saving.
  • Estate tax: win for Nevada for larger estates.
  • Sales tax: similar — Illinois and Washoe County are both in the 8%+ range.
  • Climate & distance: you trade harsh Midwest winters and humidity for dry high-desert four seasons — and a long move. Reno's winter is real but far milder and sunnier than Chicago's.

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We'll show where you actually save (property and estate, not income) so the decision is based on the real math.

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Sources: Illinois Department of Revenue (4.95% flat; retirement income exempt); Illinois estate tax $4M exemption; Tax Foundation (IL effective property tax ~2%); Nevada Department of Taxation (no income/estate tax; capped property tax). Estimates illustrative; not tax advice. Verified 2026.

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