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Should I retire in Illinois?

Writer: Charlie Horonzy
Charlie Horonzy
Sep 3, 2025
3 min read

Updated: Sep 22

As a CPA and financial advisor in Chicagoland, one of the questions I hear quite often is: “Is it a good idea to retire in Illinois?” In this blog, we’ll cover three major reasons it might make sense to consider retiring here.


But first – hello! I’m Charlie.


Financial Planning

I help people retire in Chicagoland and across the country in a tax-efficient way. You may want to check out these other blogs about financial planning for people in Illinois and other places in the United States:


Let’s dive in!


1. Favorable Illinois Taxes for Retirees


There may be tax advantages to retiring in Illinois, depending on your personal situation. Distributions from an IRA, 401(k), or other types of qualified retirement plans are not taxed in Illinois. Additionally, Social Security benefits are not taxed here, nor are many forms of pension income. The income tax rate in Illinois is a flat 4.95%. This can be favorable if you earn a high income, as the tax will be capped rather than increasing in a tiered system.


However (and that has a capital “H” for a reason), this is all theoretical until you apply it to your life experience. The tax benefits can vary quite a bit from one person to the next. Depending on where you live, property taxes can be very high. There are other Illinois taxes to be aware of. To read more about the tax implications of living in Illinois, specifically in Chicagoland, check out our blog on the financial aspects of living in Chicago.


We also recommend speaking with your CPA or financial advisor for guidance about your personal situation. We are CPAs, but nothing in this blog should be interpreted as tax advice specific to any one individual. For financial or tax guidance that applies to your personal situation, we suggest consulting with a professional.


2. Access to Affordable Housing


Housing costs can vary significantly from one place in the state to another. However, there are ample opportunities to find affordable housing in Illinois. According to Zillow, the median price of a home in Illinois is $286,669, which is lower than the national average home price of $368,581.


While housing may be affordable in terms of prices, property taxes can be a zinger. Those will be an ongoing component of your housing cost if you choose to own property in the state. Choose wisely where you retire in Illinois.


3. Cultural Amenities


Illinois is a fantastic place for senior citizens due to its lively and rich culture. There are beautiful parks and lakes throughout the state. But that’s not all! Chicago offers various forms of entertainment and cultural attractions, including the Illinois State Fair.


It may seem intangible, but mental peace of mind matters, especially in retirement!


Have You Run the Numbers?


As you can see, there are many dimensions to the question of whether or not it is a good idea to retire in Illinois. It’s best to run the numbers and get a clear financial plan to guide you in this important decision.


My name is Charlie, and I help people retire in a way that minimizes what they pay to Uncle Sam, whether they are retiring in Illinois or elsewhere. I am a CPA and a financial planner. If you’d like to set up a time to talk about tax-efficient retirement planning for people in Illinois or elsewhere, please schedule a time..



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