Side-by-side comparison of mortgage costs, property taxes, closing costs, and homeowners insurance between Illinois and Tennessee. Updated for 2026.
Illinois and Tennessee are evenly matched across major housing cost categories. Your decision may come down to other factors like job market, climate, or lifestyle preferences. Use the calculators below to model your specific scenario.
Estimated PITI payments assuming 10% down, 6.5% rate, 30-year fixed mortgage with PMI.
Buying in Illinois saves you approximately $159/month ($1,908/year) compared to Tennessee, based on median home prices with identical loan terms.
Illinois offers meaningfully lower home prices than Tennessee, with median prices running 21% less ($70K difference). This gap translates to both a smaller loan and lower monthly payments. First-time buyers priced out of Tennessee may find Illinois far more accessible, particularly when combined with local down payment assistance programs.
Property taxes are dramatically different: Tennessee charges 0.56% while Illinois charges 2.07%, a gap of 1.51 percentage points. On the respective median homes, this means Illinois homeowners pay roughly $5,589 per year in property taxes versus $1,904 in Tennessee. Over 30 years of homeownership, this difference alone can add up to six figures. Retirees on fixed incomes should weigh this heavily.
Both states offer down payment assistance for first-time buyers. Illinois's IHDA 1stHomeIllinois provides $7,500 forgivable loan, while Tennessee's THDA Great Choice Home Loan offers Up to $25,000 DPA. These programs can significantly reduce your upfront costs and make homeownership accessible even if you haven't saved a full 20% down payment. Check eligibility requirements on each state's housing finance agency website — income limits and purchase price caps apply.
The bottom line: property taxes are the defining difference here. Illinois's 2.07% rate versus Tennessee's 0.56% means Tennessee homeowners save approximately $3,685 every year on taxes alone. Over a 30-year mortgage, that difference compounds into tens of thousands of dollars — making it the most important cost factor in this comparison.