Illinois Doesn't Tax Your Pension. It TAXES Your House.

Illinois taxes $0 of your Social Security, pension, 401(k), or IRA withdrawals. The average Illinois homeowner still pays $5,277 a year in property tax alone (Ownwell, 2025 median). That's the trade this video breaks down: what Illinois actually costs a retiree once you look past the zero percent income tax headline, including the property tax bill, the senior freeze fine print, the estate tax and who it actually applies to, and the smaller costs that never make the "best states to retire" lists. This is part of an ongoing series covering the real, current tax picture state by state for retirees on a fixed income. Sources referenced in this video: Ownwell 2025 property tax analysis, Illinois Department of Revenue guidance, Illinois estate tax statute, federal estate tax exemption figures (2025), IRS SOI migration data. Chapters: 0:00 The $0 tax claim and the real property tax bill 0:59 The zero percent exemption, explained 2:40 Why Illinois never makes the "best states" lists 5:00 The property tax bill that replaces it 7:08 The senior freeze: what it actually protects you from 8:38 Who Illinois's estate tax actually hits 11:25 Check your own number in five minutes 12:13 The costs that don't make the headline 15:38 The total cost for a typical retiree 19:43 What this means for your move #IllinoisRetirement #WhereToRetire #RetireStateside