If you’re debating Illinois vs Tennessee, the tradeoffs are clear: Illinois offers a Great Lakes economy with big-city access (Chicago) and higher taxes; Tennessee leans lower-tax with fast-growing metros (Nashville, Knoxville, Chattanooga) and a warmer climate. Below is a side-by-side so you can match each state to your budget, routine, and long-term plans.
Key Points (Quick Scan)
- Income tax: Illinois has a flat 4.95% state income tax; Tennessee taxes wages at 0% (Hall tax on interest/dividends fully phased out).
- Sales tax: Tennessee’s average combined sales tax is among the highest in the U.S. (≈9.61%); Illinois’ combined rate is lower.
- Property tax: Illinois’ effective homeowner rate is high by national standards; Tennessee’s is comparatively low (≈0.48%).
- Home values (ZHVI): Illinois statewide from $283k; Tennessee from $330k. Chicago and Nashville metros sit above their state averages.
- Rents (Sept 2025): Nashville median all-units from $2,000; Chicago neighborhoods vary widely (citywide medians vary by area).
Which State Costs Less After Taxes?
Paycheck impact: Illinois withholds a flat 4.95% from wages. Tennessee does not tax wage income (the former “Hall tax” on investment income has been eliminated), which can improve take-home pay for salaried workers; though local sales taxes are higher and can offset savings depending on your spending mix.
Sales tax at checkout: Tennessee’s average combined state+local rate is about 9.61%; near the top nationally, while Illinois’ combined rate is lower (6.25% state plus local add-ons). Heavy retail spenders often feel Tennessee’s rate more acutely.
Property tax on homeowners: Illinois’ effective rates rank among the highest in the country; Tennessee’s are much lower (Tax Foundation shows ≈0.48% on owner-occupied homes). If you plan to buy and hold for years, this line item can dominate the math.
Illinois vs Tennessee Housing: What Do You Get for Your Money?
| Metric (2025) | Illinois | Tennessee | Notes |
|---|---|---|---|
| Typical home value (ZHVI) | ≈ $282,573 (statewide) | ≈ $330,018 (statewide) | Metro medians sit above state lines (e.g., Nashville ≈ $437k). |
| Median rent (all units) | Varies by city/neighborhood (e.g., Chicago 60607 avg rent ≈ $2,842) | Nashville ≈ $2,000 (Sept 2025) | Neighborhood-level swings are large in both states. |
ZHVI = Zillow Home Value Index (middle of the market). Rents reflect active listings and can skew toward newer buildings.
Illinois vs Tennessee & Industries: Where Work Clusters
Illinois: Headquarters and professional services anchored by the Chicago region (finance, consulting, logistics, health care, advanced manufacturing). Downstate metros add ag and distribution. The mix suits workers who want major-market roles and global air links.
Tennessee: Rapid growth in health care, advanced manufacturing, logistics, and entertainment, with strong employer corridors around Nashville, Knoxville, Chattanooga, and Memphis. Take-home pay benefits from no wage tax; the tradeoff is higher sales tax at the register. (Use local job boards and BLS metro profiles to compare offers.)
Illinois vs Tennessee & Student Outcomes
For cross-state comparisons, NAEP (“The Nation’s Report Card”) is the standard yardstick. In 2024, Illinois’ grade-8 math proficiency was ~32% (with average scores above national), while Tennessee posted notable gains from 2022, including higher proficiency shares in grade-4 math and improvements in grade-8. Use this information as a starting point; district report cards and feeder patterns matter more for your actual address.
Quick Tax Calculator: Illinois vs. Tennessee
This simple tool estimates annual state taxes based on your income, spending, and home value. Edit the defaults to match your situation; results are ballparks, not tax advice. Defaults use 2025 figures: Illinois flat income tax 4.95% and Tennessee 0% on wages; average combined sales tax ~9.61% in TN and ~8.8% in IL; effective property tax rates are typically higher in IL and lower in TN.
Sources: IL Dept. of Revenue; Tax Foundation.
Illinois — Estimated Annual State Taxes
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Tennessee — Estimated Annual State Taxes
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Assumptions: wage income only for the income-tax line; sales tax applies to “taxable retail” spending (groceries and some services may differ by locality); property tax uses statewide effective averages. Always confirm local rates and exemptions. Sources: Illinois Dept. of Revenue (4.95% flat rate); Tax Foundation (mid-2025 sales-tax averages and property-tax comparisons).
Weather Snapshot: What the Year Feels Like
| Metric (1991–2020 normals) | Chicago, Illinois | Nashville, Tennessee | Takeaway |
|---|---|---|---|
| January average | High ~32°F · Low ~19°F | Chilly but milder than Chicago | Winter is a bigger factor in IL (lake effect, snow). |
| July average | High ~85°F | Hotter, more humid than Chicago | TN summers feel steamier; AC runs longer. |
| Annual precipitation | ~38 inches | ~50 inches | TN is wetter overall; IL gets more snow. |
Normals are the NOAA/NWS 30-year climate baselines (1991–2020). For exact monthly values, see NWS Chicago and NOAA’s climate normals access page.
Education: State vs. Local Reality
For statewide comparisons, NAEP (“The Nation’s Report Card”) is the standard yardstick for reading and math. Illinois typically sits near or slightly above national averages in several grade/subject pairs; Tennessee has posted notable gains since 2022 in math, with improvements continuing into 2024. Use these signals to shortlist, then compare the districts you’d actually attend, growth, course access (AP/IB/CTE), climate, and feeder patterns shape day-to-day experience.
Want the broader picture of how states stack up? See our companion guide, States Ranked by Education in 2025, which explains why K–12-only lists (quality and safety) can differ from blended “Education” rankings that include higher ed and college affordability.
Which State Fits Which Priorities?
Pick Illinois if you want…
- Big-market roles and nonstop global flights (Chicago).
- Denser urban amenities and transit options.
- Lakefront access and Midwest proximity for regional work.
Pick Tennessee if you want…
- No state tax on wage income, with lower property taxes.
- Faster-growing metros and warmer winters.
- Music/entertainment ecosystems and strong logistics corridors.
FAQ
Which state has lower overall taxes for a typical W-2 earner?
Tennessee usually wins on paycheck math (no wage income tax), but its higher sales tax narrows the gap for heavy retail spenders. Homeowners feel a bigger difference via property tax: Illinois is substantially higher on average than Tennessee. Run your numbers with your spending pattern and target home price.
Where are home prices lower right now?
Statewide ZHVI is lower in Illinois (~$283k) than in Tennessee (~$330k), but metro choices flip the picture: Chicago neighborhoods range widely, and Nashville’s typical value sits in the mid-$400s. Neighborhood-level comparisons matter most.
How do student outcomes compare?
Both states hover around national averages on NAEP, with Tennessee showing stronger recent gains (especially in math) from 2022 to 2024. Always validate with the district you’d actually attend.
References
- Illinois Dept. of Revenue – Income Tax (4.95% flat).
- Tax Foundation – State & Local Sales Tax Rates (Mid-2025).
- Tax Foundation – Property Taxes by State (2025); Tennessee Tax Facts.
- Zillow – Illinois ZHVI; Tennessee ZHVI; Nashville ZHVI.
- Zumper – Nashville Median Rent (Sept 2025); Zillow – Chicago 60607 Rent & ZHVI snapshot.
- NAEP State Profile – Illinois; NAEP 2024 Snapshot – Tennessee (G8 Math); Tennessean coverage (2025).
- NWS Chicago – 1991–2020 Climate Normals; USClimateData – Nashville normals.
