Illinois Residency When Moving to Florida
The residency test, the part-year return, post-move income, the retirement exemption, and the estate tax
Reviewed by the Fairlight Accounting cross-border tax team — U.S. & Canadian Tax Desks
Illinois taxes residents on all income at a flat 4.95 percent (2026). Residency turns on whether you're in Illinois for other than a temporary or transitory purpose, or domiciled there and temporarily away — there's no New York-style 183-day statutory rule. Moving means making Florida your permanent home; the move year is a part-year return.
On this page
The test and the move year
| Item | Rule |
|---|---|
| Resident | Domiciled in Illinois, or present for other than a temporary or transitory purpose |
| Part-year | Schedule NR allocates income between the resident and nonresident periods |
| Presumptions | Rebuttable presumption of residence if you receive an Illinois homestead exemption, or if you were a resident last year and spent more days in Illinois than in any other state |
| After the move | Illinois-source income (Illinois wages, property, business) remains taxable |
Retirement income
Illinois exempts most retirement income — qualified plans, IRAs, Social Security — even for residents, so retirement income isn't the reason most Illinois retirees move; property taxes and the estate tax often are.
Estate tax
Illinois has an estate tax with a US$4 million exclusion amount (2026 — fixed by statute since 2013, not indexed for inflation, and not portable between spouses), applied to Illinois domiciliaries' estates and to nonresidents' Illinois real estate and tangible property. Domicile at death decides.
Frequently asked questions
Does Illinois have a 183-day rule?
Not a statutory residency rule like New York's — residency depends on domicile and the purpose of your presence, though a former resident who spends more days in Illinois than in any other state is presumed to remain a resident.
Does Illinois tax my pension?
No — Illinois exempts most retirement income, even for residents.
Does moving to Florida avoid the Illinois estate tax?
For your estate generally, yes, if your domicile changes — but Illinois real estate is still subject to it.
What do I file the year I move?
A part-year Illinois return allocating income on Schedule NR.
Official sources
The Illinois Department of Revenue explains: “You are an Illinois resident if you were domiciled in Illinois for the entire tax year. Your domicile is the place where you reside and the place where you intend to return after temporary absences.” — Illinois Department of Revenue, 2025 Form IL-1040 Instructions, https://tax.illinois.gov/content/dam/soi/en/web/tax/forms/incometax/documents/currentyear/individual/il-1040-instr.pdf
Next step
Fairlight Accounting is a cross-border accounting and tax practice with a U.S. Tax Desk and a Canadian Tax Desk. Our U.S. Tax Desk handles Illinois part-year returns, income allocation, and estate-tax-driven domicile planning. See pricing or book a call.
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