Illinois
Illinois’ varied economy, dynamic metropolis of Chicago, and lush farmlands make it an attractive retirement income taxation state. Despite its financial woes, Illinois continues to simplify taxes for seniors, making it a more appealing retirement destination.
Illinois is one of the few states that exempt entire retirement income. Illinois retirees don’t pay state income taxes on Social Security, pensions, or 401(k)s. Illinois’s approach lets retirees extend their savings.
This area provides extra tax incentives for seniors than retirement income exemption. Illinois exempts prescription and non-prescription medications, eligible food, and medical equipment from sales tax. This may save retirees a lot as health care and food are big expenditures.
However, Illinois retirees should be aware of some tax exclusions. The state exempts retirement income but taxes other income at 4.95%. Despite tax-friendly retirement income, Illinois has substantial property taxes. Retirees may be affected by county property tax rates.
We moved to Florida from Illinois where property taxes are 1/3 of that in Illinois based on the property value. No tax on groceries or medications. Vehicle stickers are 1/4 the cost compared to Illinois. If you own a home for 25 years in Florida and are 65, you pay no property taxes. I can go on and on about how less you are taxed in Florida compared to Illinois plus you don’t need a snow shovel.
We left Illinois as taxation is too high for everyone, including retirees, and moved to Florida because we heard there was no state tax and cost of living was lower. We should have done more research. Between taxes and insurance Florida has been no bargain either.
Florida has figured out how to compensate in other ways. Counties take out unapproved loans with us as guarantors, and they do try to levy sales tax increases (for school buildings and pornography books) and Sheriff’s office issues (like new offices – when unused county offices are like rabbits here, and their own new range). They tax your pensions and SS if you make too much of either, and 401(k)s also. AND. Florida has taken overdevelopment of its fragile ecosystems to the point where there is not enough potable water available for those of us already living here. If you are moving here, for your own sake
reconsider. Many counties are dumping so much fertilizer and bug control chemicals directly into the waterways that they and the aquifers are contaminated, as well as allowing Cemex and other major corps to allow runoff from the quaries to drain into the aquifers and Not require them to prevent it or clean it up after the fact! Yup. You might want to look elsewhere. Not much clean water anywhere in Florida any more. And you will be paying for infrastructure with your pensions here as developers are not always required to do so. And don’t forget Insurance! Florida is, if it isn’t already, going to require Everyone in Florida to carry flood insurance. Have a nice day! Hopefully elsewhere if you read this in time!
IL is a lie. People move cause taxes are so bad. Best get your info straight
Your web site is terrible
I wholeheartedly agree!
all the rest of the states should be tax free for seniors on social security ny nj cal are hard to live in because of high prices
South Carolina does not tax either.
You know, I have always heard people gripe about Tennessee taxing food. Oh. well. You don’t have a state income tax and things are relatively cheaper here. And you have to pay for government one way or another, right? Give to Caesar what is Caesar’s…
This site is so hard to navigate. It always has interesting subjects so you click on but there are so many adds that you can never actually find the article. Which I will now unfollow.