Moving from Illinois to Middle Tennessee: The 2026 Relocation Guide
Illinois lost more than 40,000 residents to other states between 2024 and 2025 — the third-largest domestic exodus in the country, behind only California and New York. A growing share of those families are landing in Middle Tennessee, where a paycheck stretches further, property tax bills shrink to a fraction of what Cook or DuPage County charges, and there is no state income tax at all. If you are weighing a move from the Land of Lincoln to the Nashville area, here is the honest math on taxes, housing, and where Illinois transplants are putting down roots.
Why People Are Leaving Illinois
The reasons Illinois residents cite are remarkably consistent: taxes, cost, and winters. Illinois carries one of the heaviest overall tax burdens in the nation, headlined by a flat 4.95% state income tax and property taxes that rank among the two or three highest in the country. For a household earning $200,000, that income tax alone is roughly $9,900 a year — money that simply stays in your pocket in Tennessee. Add long winters and rising insurance and utility costs, and it is no surprise Illinois has posted net out-migration for more than a decade. Tennessee, by contrast, gained about 42,389 residents through net domestic migration in 2025, one of the largest gains of any state, and the Nashville region absorbed more than half of it.
The Housing Math: More Home, Lower Carrying Cost
Here is where Illinois differs from a typical high-cost state. Chicago’s median home price sits somewhere around $315,000 to $380,000, while the Nashville metro median runs closer to $470,000 — so on sticker price alone, a city condo in Chicago can look cheaper than a house in Nashville. The real story is what you own and what it costs to keep it. In Middle Tennessee that budget buys newer construction, a yard, and room to grow rather than a walk-up unit. And the annual carrying cost swings hard in Tennessee’s favor: Illinois’s effective property tax rate averages roughly 1.7% to 2.1%, while Tennessee’s runs about 0.68%. On a $500,000 home, that is the difference between an Illinois bill of $8,500 to $10,000 a year and a Tennessee bill closer to $2,700 to $3,400. Over a decade, that gap alone can exceed $60,000.
The Tax and Cost-of-Living Picture
Tennessee is one of only a handful of states with no personal income tax — your salary, bonus, and retirement withdrawals are not taxed at the state level. Illinois taxes nearly all of it at 4.95%. The savings compound: a family relocating from the Chicago suburbs commonly frees up $10,000 to $20,000 a year once you combine the income-tax elimination with a far lower property tax bill. Overall cost of living follows the same pattern — Nashville runs roughly 11% cheaper than Chicago across housing, groceries, and services. Tennessee does lean on a higher state and local sales tax, so budget for that, but for most relocating households the income and property tax savings dwarf it. For a precise picture of your own numbers, reach out and I’ll walk you through a personalized cost comparison for your situation.
Where Illinois Transplants Land in the Nashville Area
Most Illinois families gravitate toward the suburbs south and east of Nashville, drawn by top-rated schools and a familiar community feel. Franklin and Brentwood in Williamson County are the marquee choices — leafy, walkable, and consistently ranked among Tennessee’s best places to live. Families wanting newer construction and a little more value look to Nolensville, Thompson’s Station, and Spring Hill, where master-planned neighborhoods and strong schools have made them among the fastest-growing towns in the state. East of the city, Mt. Juliet offers lake access and an easy commute. You can browse current Williamson County homes for sale to see how far your Illinois budget goes. Whichever town fits, the trade is the same: more space, lower taxes, and a shorter winter.
Making the Move: What to Do First
Start by getting clear on your must-haves — commute, school zone, and whether you want new construction or an established neighborhood — because in Williamson County the right school zone can shape which street you buy on. Line up a lender who understands relocation buyers, and plan a scouting trip so you can walk a few neighborhoods before you commit. If you are selling in Illinois first, coordinate your timelines so you are not carrying two homes; the Nashville market has cooled to a more balanced pace, which gives relocating buyers room to negotiate. When you are ready, I help Illinois families make this exact move every month — from the first video tour to closing day.
Have questions about your relocation? Reach out anytime. Stephen Strickhausen, Benchmark Realty, LLC. Call or text 615.480.5770, office 615-371-1544, or email SStrickhausen@gmail.com. License #313360 · 318 Seaboard Ln #112, Franklin, TN 37067.
Frequently Asked Questions
Does Tennessee have a state income tax?
No. Tennessee is one of the few states with no personal income tax, so wages, bonuses, and retirement withdrawals are not taxed at the state level. Illinois taxes almost all income at a flat 4.95%, which is one of the biggest reasons families make the move.
Are property taxes really lower in Tennessee than in Illinois?
Yes, dramatically. Illinois’s effective property tax rate averages roughly 1.7% to 2.1%, among the highest in the nation, while Tennessee’s averages about 0.68%. On a $500,000 home that is often a difference of $6,000 or more every year.
Is housing actually cheaper in Nashville than in Illinois?
On sticker price, not always — Chicago’s median (around $315K to $380K) can be lower than the Nashville metro median (around $470K). But Tennessee dollars buy newer homes with a yard, and the far lower property taxes plus no income tax mean your total annual cost of ownership is usually much lower.
Where do most Illinois transplants move in the Nashville area?
Williamson County towns — Franklin, Brentwood, Nolensville, Thompson’s Station, and Spring Hill — are the most popular, thanks to top-rated schools and newer neighborhoods. Mt. Juliet is a favorite east of the city for lake access and an easy commute.
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