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Moving from Illinois / Chicago to Boise

Illinois charges 4.95% flat income tax with no retirement income exclusion and some of the highest suburban property taxes in the Midwest. Idaho eliminates both.

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IL vs Idaho — The Tax Comparison

FactorIllinois / ChicagoIdahoNotes
State income tax (IL)4.95% flat — no retirement exclusion$0 for most retirees ($95,870 married deduction + SS exempt)IL taxes every dollar of retirement income at 4.95% — no calculation needed to know it is zero in Idaho
Property tax — $450K home$6,000–$11,700/yr (Cook/DuPage/Lake Co.)~$2,470/yr (Ada Co., after homestead)Naperville/Schaumburg $8,000–$11,000/yr on typical home
Homeowners insurance~$2,000–$3,000/yr~$1,200–$1,900/yrIdaho inland — lower risk and lower premiums
Distance to family (Chicago area)Staying in ILBoise: 4 hr flight to O'Hare (multiple daily)BOI has direct service to Chicago — 4 hours with layovers

Chicago Suburbs Buyer — Selling $600K Naperville Home, Buying Cadence at Bainbridge $575K

Annual savings estimate

Net proceeds from Naperville sale~$565,000
Cadence at Bainbridge purchase$575,000
Equity bank (modest)~-$10,000 (comparable price)
Annual income tax savings (couple, $80K retirement income)~$3,960/yr
Annual property tax savings ($600K home, DuPage Co.)~$5,500–$7,000/yr
Total annual housing cost reduction~$9,460–$10,960/yr
20-year cumulative savings~$189,000–$219,000

Illinois is the second-largest Midwest feeder state for Boise (after Chicago-area buyers who often consider multiple Western markets). The financial case is strong: 4.95% flat income tax with no retirement exclusion means every dollar of IRA, pension, and 401(k) income is taxed at 4.95% in Illinois. In Idaho, the $95,870 married deduction eliminates the tax entirely for most retired couples.

Cook, DuPage, and Lake County property taxes are among the highest in the Midwest. On a $500,000–$700,000 home in Naperville, Schaumburg, or the north suburbs, annual property tax runs $7,000–$11,000. Ada County on a comparable Idaho home runs $2,800–$4,000 after the homestead exemption.

Illinois buyers researching Boise often find that while the Bay Area equity conversion story is more dramatic, the Illinois annual savings story is more sustainable — $9,000–$11,000 per year in combined income tax and property tax savings, compounding over 20 years.

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Illinois equity range: $200K–$700K. What it buys in the Treasure Valley:

Idaho Homestead Exemption

Illinois has a senior freeze program but its income limits are $65,000 and the assessment is frozen, not the bill itself. Idaho's homestead exemption is more straightforward and renews automatically.

The exemption applies to your primary Idaho residence. File with your county assessor (Ada County Assessor: 208-287-7200; Canyon County Assessor: 208-454-7431) in the first year after closing. Bring your deed and proof of primary residency.

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