Census: 95% of Illinoisans moving out head to lower-tax states
U.S. Census estimates showed Illinois lost residents to 32 states and Washington, D.C. – virtually all to lower-tax states.
New Census Bureau data provides more evidence Illinois’ massive tax burden is driving residents away: 95% of the nearly 83,000 residents who left last year went to states with lower taxes.
The U.S. Census Bureau released state-to-state migration estimates on Jan. 21 detailing where Illinois residents moved in 2024. The American Community Survey estimates show 82,900 Illinoisans left the state on net and Illinois lost residents to 32 states and Washington, D.C.
Illinois lost the most residents to Florida (11,659); Indiana (11,629); Wisconsin (9,914); Missouri (7,470); and Tennessee (6,874). In total, Illinois lost 36,737 residents to neighboring states and 46,163 to states farther away.
One common factor for states attracting Illinoisans: lower taxes. Nearly 79,000 – or 95% – of Illinoisans who left went to areas with lower state and local tax burdens. Less than 5% (4,041) went to states with higher tax burdens.
These results are further evidence of what Illinoisans routinely tell pollsters: high taxes are the No. 1 reason why Illinoisans consider leaving the state. Polling from NPR Illinois and the University of Illinois found 61% of Illinoisans thought about moving out of state in 2019, and the No. 1 reason was taxes.
The Paul Simon Public Policy Institute found 47% of Illinoisans wanted to leave the state, and “taxes are the single biggest reason people want to leave” with 27% of respondents citing taxes as the motive for departing in 2016. More recent polling conducted by Echelon Insights in 2023 substantiated these sentiments.
Illinoisans face one of the highest state and local tax burdens in the nation, including the highest property taxes and 7th highest sales taxes in the country. Illinois’ income tax endured the largest permanent rate hike in state history in 2017.
Despite Illinois’ continued outmigration of residents amid an onslaught of high taxes, state leaders are again pushing for higher income taxes in the upcoming legislative session, including the potential to tax retirees. Another year of residents fleeing for other states should be a wake-up call to the state’s leaders, who refuse to adopt policies that would make it easier for residents to stay in Illinois.
Reforms that would ease Illinoisans’ tax burdens or reduce arduous business regulations are needed to make the state more affordable and stop the departures. More tax hikes will mean fewer Illinoisans.