The Great Business Exodus: Why Companies Are Fleeing IL for TX
Flat Tax
+ High property taxes (2nd highest)
+ Pension crisis
+ Population declining
No State Income Tax
+ Business-friendly
+ Growing economy
+ Population booming
At $100,000 income:
That's $412/month back in your pocket!
Income: $0
State Tax: $0
Take Home: $0
Income: $0
State Tax: $0
Take Home: $0
| Income | IL State Tax | TX State Tax | Annual Savings | 10-Year Savings |
|---|---|---|---|---|
| $50,000 | $2,475 | $0 | $2,475 | $24,750 |
| $75,000 | $3,713 | $0 | $3,713 | $37,130 |
| $100,000 | $4,950 | $0 | $4,950 | $49,500 |
| $150,000 | $7,425 | $0 | $7,425 | $74,250 |
| $250,000 | $12,375 | $0 | $12,375 | $123,750 |
Illinois: 2.3% average (2nd-highest in US after NJ)
Texas: 1.6% average (higher than most, but lower than IL)
On a $300,000 home:
Plus housing in TX metro areas is often 20-30% cheaper than Chicago suburbs!
Best for: Corporate jobs, families
Vibe: Most Chicago-like (big city, corporate HQs)
Why IL residents love it: Similar feel to Chicago but warmer & cheaper
Best for: Tech workers, young professionals
Vibe: Liberal enclave in conservative state
Why IL residents love it: Progressive politics, music scene, startup culture
Best for: Energy, healthcare, diverse community
Vibe: Big city energy, international
Why IL residents love it: Similar diversity to Chicago, great food scene
Best for: Affordability, slower pace
Vibe: Relaxed, affordable, family-friendly
Why IL residents love it: Lowest cost of living, still has big city amenities
The Problem: Illinois has $140+ billion in unfunded pension liabilities - the worst pension crisis in America.
What this means:
Result: Residents and businesses are fleeing before the inevitable tax tsunami hits.
Texas public pensions are ~75-80% funded (healthy). No looming catastrophe. Constitutional prohibition on income tax means they CAN'T just raise taxes to fix problems.
A: Yes! Many companies now allow this. You'll pay $0 TX state tax. Make sure to establish TX residency properly.
A: Federal taxes are the same regardless of state. This comparison is state income tax only.
A: Very likely. The pension crisis is unsolved and getting worse. Many expect the income tax to rise from 4.95% to 6-7% within 5-10 years.
A: Yes. Housing in Dallas/Houston is 20-30% cheaper than Chicago suburbs. Property taxes are lower. Income tax is zero. Total cost of living is significantly less.
A: Probably. Chicago has world-class food, architecture, culture. Dallas/Houston have good food scenes but different vibe. Austin is most "cultural." It's a trade-off.
A: TX summers are brutal (95-105°F with humidity). But you'll never shovel snow again. Most IL transplants prefer the trade-off after 1-2 years.