Illinois

Illinois's total tax burden (12.9% of income) is essentially the same as New Jersey's (13.2% of income) — a difference of only -0.3 pts. On a $100K household budget, the move is roughly tax-neutral. Other factors (retirement rules, estate tax, specific categories) may matter more.

Illinois top marginal income tax rate is 4.95%, versus 10.75% in New Jersey. Compare across your expected income bracket — top rates kick in at different thresholds in each state.

Illinois state sales tax is 6.25%. With average local add-ons, the combined rate is 8.86%. This applies to most retail purchases but rules on groceries, prescriptions, and services vary.

Illinois median effective property tax rate is 2.08% of home value. On a $400,000 home, that is roughly $8,320/year. Property tax typically funds schools, municipalities, and county services — rates vary sharply within a state by school district.

Illinois imposes a state estate tax with a threshold of $4.0M. Estates above this threshold pay state-level tax in addition to federal. No state inheritance tax applies.

In Illinois: Social Security is not taxed. Pensions and 401(k)/IRA withdrawals are not taxed.

Illinois capital gains treatment: Taxed at 4.95% flat rate as ordinary income. Compare to federal long-term capital gains rates (0%, 15%, or 20%) — some states offer preferential treatment for long-term holdings, while others tax capital gains as ordinary income.

Illinois gas tax is 47.0¢/gal — 2.1¢/gal higher than New Jersey's 44.9¢/gal. For a 15,000 mile/year driver getting 25 mpg, each 1¢/gal of gas tax = about $6/year.

Illinois residency rules: Domicile + 9-month presumption. Permanent abode + intent test. To establish residency for tax purposes, typical steps include: update driver's license and vehicle registration, register to vote, file a homestead declaration, close home-state bank accounts where possible, and spend clearly more than 183 days in your new state. If your former state is aggressive (e.g., CA, NY, NJ, OR), keep documentation of every day spent in each state.

Illinois recent tax law changes: Grocery tax ending January 2026 (from 1% to 0%). No income tax rate changes. Estate tax threshold unchanged at $4M (not inflation-indexed).

For the most current tax information in Illinois, visit the official source at https://tax.illinois.gov/. Tax laws change annually; verify rates and rules before making a permanent move. Consult a CPA for advice specific to your situation.