Illinois Sees $6 Billion in Taxable Income Lost to Migration

Experts warn of growing 'wealth migration' issue as residents flee high taxes and costs

Apr. 16, 2026 at 2:10am

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A detailed, photorealistic painting of an empty office desk in a dimly lit, downtown high-rise, with warm, diagonal sunlight and deep shadows creating a sense of solitude and melancholy, conceptually representing the fiscal challenges facing Illinois and Chicago.The migration of wealth and high-income residents out of Illinois casts a long shadow over the state's and Chicago's deteriorating fiscal landscape.Chicago Today

A new report from the Illinois policy research organization Wirepoints reveals that the state saw a staggering $6 billion in taxable income leave in 2023 as residents continue to migrate out of Illinois, exacerbating the state's fiscal woes. Chicago's leadership has proposed a pension buyout program, but experts say this merely shifts debt rather than addressing the broader deteriorating financial picture facing the city and state.

Why it matters

The migration of wealth and high-income residents out of Illinois is a growing concern, as the state and its largest city, Chicago, grapple with massive unfunded pension liabilities, high taxes, and a deteriorating fiscal outlook. This 'wealth migration' issue threatens to further erode the tax base and compound financial challenges.

The details

According to the Wirepoints report, Illinois saw $6 billion in taxable income leave the state in 2023 as residents continue to flee high taxes and costs of living. Chicago's political leadership has proposed a pension buyout program as an attempt to address the city's $36 billion unfunded pension liability, but experts say this merely shifts debt rather than reducing it. The broader fiscal picture facing both the city and state remains dire, with deterioration across every measurable dimension.

  • The Wirepoints report analyzed data from 2023.
  • Chicago's pension buyout program is a current proposal.

The players

Mark Glennon

Founder of the Illinois policy research organization Wirepoints.

Chicago's political leadership

The city's elected officials and policymakers.

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What they’re saying

“Illinois is among the biggest losers, its migrating taxpayers taking $6 billion in taxable income with them in 2023.”

— Jim Dey

“The proposal moves debt from one column to another rather than reducing it, and the broader fiscal picture facing the city continues to deteriorate across every measurable dimension.”

— Mark Glennon, Founder, Wirepoints

What’s next

Experts warn that the issue of 'wealth migration' out of Illinois will likely continue to be a major concern for policymakers as they grapple with the state's fiscal challenges.

The takeaway

The exodus of high-income residents and their taxable income from Illinois is exacerbating the state's and Chicago's dire financial situation, underscoring the need for comprehensive solutions to address the root causes driving this 'wealth migration' trend.