Sadly, the Great Exodus Out of Illinois Continues
In a recent poll by the Illinois Policy Institute, half (49.5%) of Illinois voters polled said they would move out of the state if given the opportunity. 40% said they would prefer to stay in Illinois while 10.5% said they were unsure. Of the voters surveyed, 37% voted for Donald Trump in the 2024 presidential election while 51.7% voted for Kamala Harris.
The No.1 reason for wanting to leave the state is high taxes. Illinois is consistently ranked as having one of the highest tax burdens imposed on its residents. Illinois’ property taxes, sales and excise taxes, estate taxes and gasoline taxes, among others, are typically among the highest in the nation. Likewise, 33% of voters surveyed said the state of Illinois’ economy was their No. 1 issue. Rounding out the Top 5 reasons for wanting to leave is the quality of state governance (25%), crime (20%) and housing (19%).
Throwing all the above in a giant mixing bowl helps explain why Illinois residents have been fleeing the state. According to the latest data from the U.S. Census Bureau, between July 1, 2023 and July 1, 2024, Illinois had a net domestic migration outflow of 56,235. This means the state had 56,235 more of its residents move out of Illinois to another state that it had people move from another state to Illinois. Illinois had the third highest net domestic migration outflow behind only California (-239,575) and New York (-120,917). New Jersey (-35,554) and Michigan (-27,480) came in fourth and fifth, respectively. The year before, Illinois’ net domestic outflow was even worse (-83,839).
Over the past 10 years, Illinois hasn’t recorded a single year of positive net domestic migration. During these 10 years, Illinois has had a cumulative net domestic outflow of nearly 947,000.
The state receiving the largest influx of residents from other states was Texas, which reported a net domestic migration inflow of 85,267. This was followed by North Carolina (82,288), South Carolina (68,043), Florida (64,017) and Tennessee (48,476). By comparison, Iowa’s net domestic migration was fairly neutral, losing a net 231 residents to other states.
The recent data reinforces the continuing trend of Americans leaving high-tax, high-cost-of-living states for low-tax, low-cost-of-living states. But it’s not just residents that are leaving states like California, New York and Illinois for greener pastures, it’s also businesses.
In a 2024 survey of California small business owners by PublicSquare and RedBalloon, just 13% said they were happy operating in the state. Moreover, a whopping 67% said they were either planning on leaving, considering leaving or want to leave the state of California.
Because of its high taxes and burdensome regulatory environment, Illinois also has its challenges in retaining businesses. In recent years, a number of high profile corporations have relocated their headquarters out of Illinois to more business-friendly states. The list includes such corporate heavyweights as Boeing, Citadel, Tyson Foods, Caterpillar, TTX and Guggenheim Partners, among many others.
In a 2025 nationwide survey of CEOs and business owners by business magazine Chief Executive, Illinois was ranked No. 48 of the 50 states in terms of positive business climate. Once again, only California (No. 50) and New York (No 49) ranked worse. Conversely, Iowa was ranked No. 14.
As a long-time resident of Illinois, I’ve more than seen my share of individuals, families and businesses abandon Illinois for other states. Many have moved to the Iowa side of the Quad Cities. For Illinois politicians wanting to attract residents and businesses to the Land of Lincoln, ranking No. 48 in both net domestic migration and business friendliness is a fairly dismal record. Saying that Illinois is “slightly better than California and New York” does not make for a successful marketing slogan.
Mark M. Grywacheski, Investment Advisor
Quad Cities Investment Group is a Registered Investment Adviser.
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