Quick answer
Tennessee has lower average 1BR rent ($1,238/mo vs $1,850/mo). State income tax: Tennessee (None) vs Illinois (4.95%) — on a $120K salary that's $5,940/year difference.
State Comparison · 2026
Illinois vs Tennessee
Side-by-side on state income tax, rent, home prices, climate, and top metros — with specific dollar numbers for every claim.
Last updated: April 23, 2026
Illinois vs Tennessee at a Glance
| Metric | Illinois | Tennessee |
|---|---|---|
| Avg 1BR rent (major metros) | $1,850 | $1,238 ✓ |
| Avg median home price | $340K | $304K ✓ |
| Cheapest city | Chicago ($1,850) | Memphis ($980) ✓ |
| Priciest city | Chicago ($1,850) | Nashville ($1,520) |
| State income tax | 4.95% | None ✓ |
| Avg walkability | 78/100 ✓ | 35/100 |
| Cities tracked | 1 | 4 |
✓ marks the lower or more favorable value. Averages use the major metros we track in each state.
State Income Tax: Real Savings
What the rate gap actually looks like in your paycheck. Lower rate: Tennessee (None).
Salary $80K
$3,960
/year saved in Tennessee
Salary $120K
$5,940
/year saved in Tennessee
Salary $200K
$9,900
/year saved in Tennessee
Calculation uses the effective state rate difference × gross salary. Doesn't include property tax, sales tax, or federal impact.
Deep Dive: Each State
Illinois (IL)
Tax reality
Illinois has a flat 4.95% state income tax (moderate) — but property taxes are among the highest in the US, averaging 2.1% effective. On a $350K Chicago home that's $7,400/year. Combined tax burden is higher than it looks. The state's pension underfunding creates long-term fiscal risk for homeowners.
Top cities (1 tracked)
Top drawbacks
- ✕Property tax is brutal — Cook County averages 2.3% effective. On a $500K home, that's $11,500/year. Homeowners feel this every month.
- ✕Chicago winters are genuinely cold. Lake-effect snow, mid-December through March subzero streaks, and winds off Lake Michigan can make it feel -20°F. This is the biggest filter for people considering moving here.
- ✕The state fiscal situation (pension debt, budget pressures) drives ongoing policy uncertainty — property tax, sales tax, and various fees continue to drift upward.
Tennessee (TN)
Tax reality
Tennessee has no state income tax on W-2 wages or investment income. Sales tax is 7% state + local, totaling 9.25-9.75% in most metros — one of the highest sales tax rates in the US. No estate tax. Property tax is low (~0.7% effective in Nashville, lower in rural areas).
Top cities (4 tracked)
Top drawbacks
- ✕Sales tax 9.25%+ is punishing. Every purchase stings — gas, groceries (yes, groceries are taxed here), and retail.
- ✕Nashville traffic has become very bad as the metro has grown. I-24 and I-65 corridor are regularly backed up; the state has underinvested in transit.
- ✕Summers are humid subtropical — regular 90°F + 75% humidity from June through September, and thunderstorm season can be intense.
Frequently Asked Questions
Is Illinois or Tennessee cheaper to live in?
Tennessee has lower average 1BR rent across major metros — $1,238/mo vs $1,850/mo in Illinois, a $612/mo difference. Home prices: Tennessee median is $304K vs $340K.
Illinois vs Tennessee: which has lower state income tax?
Tennessee has lower state income tax (None) vs 4.95% in Illinois. On an $80K salary that's $3,960/year in savings. On $200K, savings grow to $9,900/year.
Should I move from Illinois to Tennessee?
Illinois has a flat 4.95% state income tax (moderate) — but property taxes are among the highest in the US, averaging 2.1% effective. On a $350K Chicago home that's $7,400/year. Combined tax burden is higher than it looks. The state's pension underfunding creates long-term fiscal risk for homeowners.
What are the best cities in Illinois vs Tennessee?
Illinois's largest metros include Chicago. Tennessee's largest metros include Nashville, Memphis, Chattanooga. Cost of living varies significantly within each state — a Illinois suburb can be 40% cheaper than its flagship city, and vice versa.