Illinois has lost more residents than any other state over the past decade. According to U.S. Census Bureau data, Illinois has seen net domestic out-migration every single year since 2011. That's not a coincidence — it's a signal. And a growing share of those families are landing in the Twin Cities.
I work with Illinois families regularly, and the reasons they give are remarkably consistent. Here's the honest picture.
The Property Tax Reality
Illinois has the highest property taxes in the nation (Tax Foundation, 2024) — an effective rate of 2.08–2.5% depending on county. Minnesota's effective rate runs 1.0–1.2%. On a $350,000 home, that's the difference between:
That's not a rounding error. That's a car payment, a vacation, or thousands of dollars building equity instead of being taxed away every year.
The Income Tax Comparison
Illinois has a flat 4.95% income tax rate. Minnesota's income tax is graduated, reaching 9.85% at the top bracket (over $203,150 for single filers, $337,930 for married filing jointly, 2026 brackets). For most middle-income families, Minnesota's effective income tax rate is actually comparable to or only slightly higher than Illinois.
Example: A family earning $120,000 in Illinois pays roughly $5,940 in state income tax (4.95% flat). The same family in Minnesota pays approximately $6,800–$7,200 depending on deductions — about $800–$1,200 more per year. But they save $3,850–$4,550 on property taxes. Net savings: $2,600–$3,750 per year.
Schools: A Near-Tie at the Top
This is the one area where Illinois families worry unnecessarily. Minnesota and Illinois consistently trade spots in national education rankings. U.S. News ranks Minnesota in the top 5 states for education. Illinois ranks in the top 15. The difference is modest — and the specific suburb matters far more than the state.
Twin Cities suburbs like Eden Prairie, Woodbury, and Maple Grove offer school quality that rivals or exceeds top Chicago suburbs like Naperville, Downers Grove, and Schaumburg — at a significantly lower housing cost.
Chicago Suburbs (IL)
- Naperville median home: ~$450K
- Property tax on $450K: ~$10,800/yr
- School rating: 9/10 (GreatSchools)
- State pension system: severely underfunded
- Population: declining
Twin Cities Suburbs (MN)
- Eden Prairie median home: ~$495K
- Property tax on $495K: ~$5,200/yr
- School rating: 9/10 (GreatSchools)
- State finances: among strongest in nation
- Population: growing
The Weather Question
People are sometimes surprised to learn that Chicago and Minneapolis have nearly identical winter climates. Chicago averages 37 inches of snow per year; Minneapolis averages 54 inches. Chicago's January average low is 18°F; Minneapolis is 5°F. So yes — Minneapolis is colder. But if you've survived Chicago winters, you're already 80% of the way there. The gear is the same. The mindset is the same. The prep steps are familiar.
State Fiscal Health
This factor doesn't get discussed enough in relocation conversations. Illinois carries over $200 billion in unfunded pension obligations — the worst in the nation. Property taxes have been rising year after year to cover the gap, and there's no structural fix in sight. Minnesota, by contrast, has repeatedly run budget surpluses and maintains one of the most stable state credit ratings in the Midwest.
When clients ask me about Minnesota's long-term fiscal stability as a factor in a home purchase, the state's track record of budget surpluses and stable credit rating is a strong answer. The same question about Illinois carries more uncertainty given its pension obligations.
Which Twin Cities Suburbs Are Most Popular with Buyers from Illinois?
Based on my experience with Illinois clients, these are the suburbs that come up most often:
- Woodbury — East metro, newer construction, strong schools. Feels most like a Chicago suburb in layout and energy.
- Eagan — Highway access, affordable, growing job base.
- Eden Prairie — Strong schools, extensive parks, and a premium price point.
- Lakeville — Spacious homes, affordable, strong schools.
- Prior Lake — Lakes, newer neighborhoods, strong schools, and larger lots.
For a detailed breakdown of each suburb, visit our suburb explorer or check out the full Illinois to Minnesota relocation guide.
* Sources: Tax Foundation 2024, U.S. Census Bureau 2023 Population Estimates, U.S. News Education Rankings, GreatSchools.org, Zillow Research Q1 2025, Illinois Commission on Government Forecasting and Accountability.