Illinois vs. Tennessee: taxes and cost of living
On a $100,000 salary, take-home pay is $67,070 in Illinois and $71,380 in Tennessee. After cost of living, it's worth $10,599 more in Tennessee.
Your yearly spending before taxes, at national-average prices. Each state scales it by its cost of living.
| Illinois | Tennessee | |
|---|---|---|
| Federal income tax | $10,970 | $10,970 |
| Social Security + Medicare | $7,650 | $7,650 |
| State income tax | $4,310 | $0 |
| Local income tax | $0 | $0 |
| State payroll taxes | $0 | $0 |
| Sales tax (est.) | $1,436 | $1,567 |
| Property tax (est.) | $0 | $0 |
| Total taxes | $24,366 | $20,187 |
| Effective tax rate | 24.4% | 20.2% |
| Take-home pay | $67,070 | $71,380 |
| Cost of living (US = 100) | 100.0 | 91.9 |
| Take-home in US-average dollars | $67,098 | $77,697 |
| Your spending at local prices | $49,979 | $45,935 |
| Saved per year (incl. pre-tax) | $27,091 | $35,445 |
| Years to FI | 25.0 | 20.1 |
Explore each state
Frequently asked questions
Is Illinois or Tennessee cheaper to live in?
Illinois's cost of living index is 100.0 and Tennessee's is 91.9 (US average = 100, BEA 2024). Median home values are $280,700 and $332,600.
Which has lower taxes, Illinois or Tennessee?
On a $100,000 salary, total estimated taxes are $24,366 (24.4%) in Illinois and $20,187 (20.2%) in Tennessee, counting federal, state and local income tax, payroll and estimated sales tax.
Is it cheaper to retire in Illinois or Tennessee?
Spending $50,000 a year at US-average prices, the FI number is $1.29M in Illinois and $1.18M in Tennessee: $111.8K less in Tennessee.
How this is calculated
- Income taxes use 2026 federal and state brackets, standard deductions and personal exemptions or credits. No itemized deductions or other credits. Local income taxes use a typical statewide rate (for example, Maryland's county taxes or New York City's); many places have none.
- Payroll taxes include Social Security (6.2% up to the wage base), Medicare, and employee-paid state programs such as California SDI or Washington's paid leave premium. A married household salary is treated as two equal earners for payroll-tax caps.
- Cost of living uses the Bureau of Economic Analysis's Regional Price Parities (2024), where the US average is 100. Spending you enter at national prices is scaled by each state's index.
- Sales tax is estimated as the average combined state and local rate on about a third of spending (more where groceries are taxed). It is shown for context but not added to costs, because the price parities already include it. Property tax applies the state's effective rate to its median home value (Census ACS 2024) if you own.
- Retirement solves for the withdrawal that covers your spending plus the taxes it triggers, using each state's treatment of Social Security, retirement-account withdrawals and capital gains, then multiplies by 25 (a 4% withdrawal rate).
- Years to FI starts from zero, adds what you save each year in that state, and grows it at a 5% real return until it reaches that state's FI number.
Estimates for comparison, not tax advice. Your actual taxes depend on deductions, credits, where in the state you live and more. Sources: BEA Regional Price Parities, Census ACS, state sales tax rates, IRS, state revenue departments (per state).