Nova55Living › Fort Collins / Northern CO › Moving from Illinois
Illinois has a 4.95% flat income tax and an average effective property tax rate of roughly 2.1% — one of the highest in the country. Moving to Fort Collins cuts property tax by more than 70% on the same home value and saves slightly on income tax. For Illinois retirees, this is one of the clearest financial cases for relocation.
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Talk to a Specialist →| Home Value | Illinois (~2.1%) | Larimer County (~0.56%) | Annual Savings | Over 10 Years |
|---|---|---|---|---|
| $350K | ~$7,350 | ~$1,960 | ~$5,390 | ~$53,900 |
| $500K | ~$10,500 | ~$2,800 | ~$7,700 | ~$77,000 |
| $700K | ~$14,700 | ~$3,920 | ~$10,780 | ~$107,800 |
| Item | Illinois | Colorado (Fort Collins) |
|---|---|---|
| State income tax | 4.95% flat | 4.40% flat |
| Pension income | Fully exempt | Up to $24K subtraction at 65+ |
| Social Security | Fully exempt | Partially taxable; coordinated w/ pension subtraction |
| 401k / IRA withdrawals | Fully exempt | Up to $24K subtraction at 65+ |
Illinois’s full retirement income exemption is genuinely better than Colorado’s. For a retiree with $80,000/year in pension and Social Security, Illinois’s zero income tax on retirement income saves roughly $2,400–$3,500/year more than Colorado. But that advantage is almost always overwhelmed by the property tax difference — Illinois’s 2.1% effective rate vs. Larimer County’s 0.56% produces $5,000–$10,000+ in additional annual tax on a mid-range Colorado home purchase price.
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| Scenario | Illinois (est.) | Fort Collins (est.) | CO Advantage |
|---|---|---|---|
| Retiree, $60K income, $500K home | ~$0 income tax + ~$10,500 prop tax = ~$10,500 | ~$1,320 income tax + ~$2,800 prop tax = ~$4,120 | ~$6,380/yr |
| Retiree, $80K income, $600K home | ~$0 income tax + ~$12,600 prop tax = ~$12,600 | ~$2,112 income tax + ~$3,360 prop tax = ~$5,472 | ~$7,128/yr |
Rough illustrative estimates. Actual figures depend on income mix, deductions, and specific mill levy. Consult a CPA.
Beyond taxes, the most common drivers: escape from Illinois winters (Fort Collins averages 300+ days of sunshine; Chicago averages 166 sunny days), mountain access, lower cost of living outside housing, and Colorado State University’s cultural amenities as a Fort Collins anchor. The Rockies are 45 minutes west.
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