Nearly half of Illinois’ 102 counties have now voted to break away from the state, and the organizers behind the push say the problem is Chicago.
Twelve more downstate counties approved nonbinding secession referendums Nov. 3, bringing the total to 45 since 2020, FOX 32 Chicago reported. Approval ranged from 57% in McDonough County to 90% in one Adams County township, Illinois Separation director Loret Newlin told The Center Square.
The newest additions are Coles, Ford, Gallatin, Hamilton, Henderson, Macoupin, McDonough, Monroe, Piatt, Saline, Warren and Washington counties. Illinois Radio Network counts 44 counties plus 11 Adams County townships — the difference is Ford County, whose question wasn’t part of the organized campaign.
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Indiana has spent nearly two years courting these counties with lower taxes, and for some Illinoisans that pitch holds up. For others, especially retirees, it backfires.
Why downstate blames Chicago
Supporters say state lawmakers cater to Chicago and Cook County and overlook the rest of Illinois. “The state legislature tends to not take us into consideration when they’re making their laws,” Newlin told FOX 32. She also said downstate has no voice in how tax dollars are spent.
But a study from Southern Illinois University’s Paul Simon Public Policy Institute found the money flows the other way. In 2016, southern Illinois got back $2.88 in state spending for every $1 it paid in state taxes, and downstate as a whole got back $1.70. Cook County got back 98 cents and the collar suburbs 60 cents.
The authors credit the state universities, prisons and parks located downstate, and their 2025 update says state spending still transfers some wealth from Cook County and the suburbs to downstate. New Illinois, a separation group, has called the study flawed.
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Where would they go?
Organizers want to form a new state of their own, Newlin told FOX 32, and becoming part of Indiana isn’t the goal.
Indiana is making its pitch anyway. House Speaker Todd Huston, R-Fishers, authored a law creating an Indiana-Illinois Boundary Adjustment Commission, which Indiana Gov. Mike Braun, a Republican, signed on May 1, 2025. Huston invited frustrated Illinois neighbors to join “low-cost, low-tax Indiana.”
The commission first met in October 2025 with no Illinois members — and it hasn’t publicly met since.
“It’s a stunt. It’s not going to happen,” Illinois Gov. JB Pritzker, a Democrat, said of the effort in January 2025. He also called Indiana a low-wage state that doesn’t protect workers or provide health care for people in need.
What happens next
Legally, the path is steep. Creating a new state would take approval from the Illinois General Assembly and Congress, and the last time a state was carved out of another was West Virginia, during the Civil War.
Seven counties already have contacts lined up for 2028 referendum petitions, Illinois Radio Network reported, and Newlin has said organizers have heard from people in every county.
Oregon shows how these efforts can stall. The Greater Idaho movement has won ballot measures in 13 eastern Oregon counties since 2020, but Wallowa County voters scrapped their required border meetings 61% to 39% in May 2026, and state lawmakers have refused to take up the plan, OPB reported.
Does the tax math add up?
Indiana’s case is strongest for working homeowners and weakest for retirees who live on pensions or IRA withdrawals.
Start with property taxes. Illinois and New Jersey are tied for the highest effective property tax rate in the country at 1.88%, according to the Tax Foundation’s 2026 report, which uses 2024 Census data. Indiana’s rate is 0.76%. On a $300,000 home, that’s roughly $5,640 a year in Illinois versus $2,280 in Indiana — about $3,360 in savings.
The gap shrinks in the counties that just voted, where homes cost less and rates often run below the state average (Hamilton County’s is 1.22%). In Coles County, the median homeowner pays $2,474 a year on a home worth $127,400, a 1.72% rate, per the same report.
In Vigo County, Indiana, home to Terre Haute, the effective rate is 0.82%. The same home would be taxed about $1,045 a year there, roughly $1,430 less.
Indiana’s flat income tax rate is 2.95% for 2026, versus 4.95% in Illinois. But every Indiana county adds its own income tax, from 0.5% to 3%, per the Indiana Department of Revenue. Vigo County’s is 2%, making a resident’s combined rate 4.95%, the same as Illinois’.
That matters most for retirees. Illinois doesn’t tax Social Security, pensions or 401(k) and IRA withdrawals, per the Illinois Department of Revenue. Indiana exempts Social Security and military retirement pay but taxes most other pensions and retirement account withdrawals like regular income. A single retiree 65 or older drawing $50,000 a year from a pension and an IRA would owe nothing to Illinois but roughly $1,650 to $2,850 a year in Indiana state and county income tax, depending on the county.
A retiree who moved from that median Coles County home to a similarly priced one in Vigo County would save about $1,430 in property tax but owe about $2,380 in Indiana income tax — roughly $950 a year behind, by Moneywise’s estimate.
The sales tax gap is smaller. Indiana charges a flat 7% with no local add-ons. Illinois averages 8.98% once local taxes are included, per the Tax Foundation’s midyear 2026 figures, though Coles County’s two largest cities charge 8.25% (Charleston) and 7.75% to 8.75% (Mattoon).
Who actually saves by moving
The border isn’t moving anytime soon, but you don’t need a referendum to change states. A working homeowner trading Coles County for Vigo County could save about $1,430 a year in property tax with roughly the same income tax bill. A retiree living off a pension or IRA could end up paying more overall.
Either way, compare your actual county rates rather than statewide averages, and talk to a tax professional or financial advisor before you call the movers.
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Rudro is an Editor with Moneywise. His work has appeared on Yahoo Finance, MSN, MSN Money, Apple News, Samsung News and the San Diego Union Tribune.
