Does Illinois have an exit tax?

Illinois does not have a formal exit tax. However, Illinois does require you to file a final part-year return for the year you leave. The Illinois Department of Revenue may review your return to ensure you properly reported income earned while still an Illinois resident. Proper documentation of your domicile change date is essential to avoid disputes about which income is taxable to Illinois.

How does the Illinois flat tax affect my savings from moving to Florida?

Illinois has a flat income tax rate of 4.95%, meaning every dollar of taxable income is taxed at the same rate regardless of how much you earn. This actually makes calculating your savings straightforward: multiply your annual income by 4.95% and that's approximately what you'd save by moving to Florida. For someone earning $150,000, that's about $7,425 per year. There are no brackets to optimize around—the only way to reduce your Illinois tax to zero is to change your residency.

How does Illinois audit former residents?

The Illinois Department of Revenue examines several factors to determine residency: where you maintain your primary home, where your spouse and family reside, your voter registration, driver's license, vehicle registrations, where you work, and where your professional and social connections are located. Illinois may review your return for 3-4 years after you leave. Keep thorough records of your Florida ties and the date you established domicile.

What about Illinois property tax if I keep a home there?

Illinois has some of the highest property taxes in the nation (averaging over 2% of assessed value). If you keep an Illinois property, you'll continue paying property tax on it regardless of your residency status. However, owning property in Illinois alone doesn't make you a resident for income tax purposes. If you rent out the property, the rental income would still be Illinois-source income and taxable to Illinois.

How much can I save by moving from Illinois to Florida?

With Illinois's flat 4.95% tax rate, your savings equal your taxable income multiplied by 4.95%. For $100,000 income, that's approximately $4,950/year. For $200,000, it's approximately $9,900/year. For $500,000, savings exceed $24,750/year. Over 10 years, a $200,000 earner would save roughly $99,000. Florida has no state income tax on wages, investment income, or retirement income.

Does Illinois tax retirement income?

Illinois is actually one of the more favorable states for retirees in terms of retirement income—it exempts Social Security, pension income, and distributions from retirement plans (401k, IRA) from state income tax. However, if you have significant non-retirement income (wages, business income, investment income), moving to Florida still provides substantial tax savings on that income.

What is Illinois source income and can they tax me after I leave?

After you establish Florida residency, Illinois can still tax "Illinois-source income." This includes income from work physically performed in Illinois, rental income from Illinois property, income from Illinois-based businesses, and gambling winnings from Illinois. Your non-Illinois-source income (remote work for non-IL companies, investments, retirement) would no longer be taxable to Illinois once you are a Florida resident.

What documents should I keep to prove I left Illinois?

Maintain: Florida driver's license, Florida voter registration, Declaration of Domicile filed in Florida, lease or deed for Florida residence, utility bills in Florida, records of time spent in each state, Florida vehicle registration, updated estate documents executed in Florida, and records of Illinois ties severed with dates. Keep these records for at least 4 years after filing your final Illinois return.

Illinois → Florida Tax Migration

Escape Illinois's 4.95% Flat Tax

Illinois taxes every dollar at the same flat rate with no brackets to optimize. Save $3,000-$25,000+ annually by establishing Florida residency. We help you navigate the process, document your move, and protect yourself from residency audits.

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Your Illinois Tax Savings

See how much you could save by moving from Illinois to Florida

Your Annual Income

$150,000

🏙️

Illinois

$7,425/year in state tax

Flat 4.95% rate on all income

🌞

Florida

$0/year in state tax

0% state income tax

YOUR ESTIMATED ANNUAL SAVINGS

$7,425

That's $74,250 over 10 years

*Estimate based on Illinois 2024 flat tax rate of 4.95%. Individual results vary. Consult a tax professional.

How to Leave Illinois the Right Way

Our 5-step process protects you from state tax audits

Document Your Intent to Leave Illinois

Establish clear evidence of your intent to make Florida your permanent home. Create a timeline, notify the Illinois Department of Revenue, and prepare your relocation documentation.

Set Up Your Florida Address & Virtual Mailbox

Get a legitimate Florida residential address. Complete USPS Form 1583 with remote notarization. Your mail will be scanned and accessible from anywhere.

Obtain Florida Driver's License & Update Voter Registration

Surrender your Illinois license and get a Florida license. Register to vote in Florida. These are two of the strongest indicators of domicile change.

Sever Illinois Ties Systematically

Close Illinois bank accounts, update professional licenses, move financial advisors, and cancel Illinois memberships. Document everything for potential audit protection.

File Your Final Illinois Return & Maintain Florida Ties

File a part-year return for Illinois. Going forward, build Florida ties: register vehicles, update estate documents, and maintain organized records of your Florida activities.

Complete Guide

Florida Residency: Everything You Need to Know

Learn about Florida's tax advantages, residency requirements, and how to establish domicile.

Learn More

Illinois Exit FAQ

Common questions about leaving Illinois for Florida

Ready to Leave Illinois Taxes Behind?

Stop paying Illinois's flat 4.95% tax on every dollar you earn. We'll help you establish proper Florida residency and keep more of your income.

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