Compare taxes and see how much you save moving from Illinois to Texas
Texas has 0% income tax—but the math is more complex than headlines suggest. Illinois charges 4.95% flat BUT has 2.23% property tax. Texas charges 0% income BUT has 1.6-2.2% property tax. At $100,000 income + $300K home: Illinois total ~$11,640. Texas total ~$5,400 (property only). Texas saves ~$6,240/year. BUT: Illinois exempts Social Security AND retirement distributions from state tax—for retirees, Illinois often wins despite the rate. At $150,000 salary with $500K home: Illinois ~$18,575. Texas ~$9,000. Texas saves ~$9,575/year. Choose Texas if: working age, high income, moderate home. Choose Illinois if: retired (retirement income exempt), value Chicago access, or in a field paying 20%+ more in Chicago.
Flat Tax
But exempts retirement income
No Income Tax
1.6-2.2% property tax instead
At $100,000-$150,000 income:
That is $413-798/month back in your pocket!
| Income | IL Tax | TX Tax | Savings | 10-Year |
|---|---|---|---|---|
| $75,000 + $250K home | ~$3,713 income + $5,575 property | $0 income + $4,500 property | Texas saves ~$4,788 | $47,880 |
| $100,000 + $300K home | ~$4,950 income + $6,690 property | $0 income + $5,400 property | Texas saves ~$6,240 | $62,400 |
| $150,000 + $500K home | ~$7,425 income + $11,150 property | $0 income + $9,000 property | Texas saves ~$9,575 | $95,750 |
| $80K retirement income | $0 (retirement exempt!) | $0 income + ~$5,400 property | Illinois saves ~$5,400 | $54,000 (retirees) |
| $200,000 + $600K home | ~$9,900 income + $13,380 property | $0 income + $10,800 property | Texas saves ~$12,480 | $124,800 |
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Moving from Illinois to Texas? Multi-state returns are tricky—partial-year residency, different deadlines, avoiding double taxation. Get matched with a CPA who specializes in state moves. Virtual meetings, fixed pricing.
⚠ Not for simple single-state returns. Free filing is fine for straightforward W-2 situations.
Get Matched With a CPA →At $100,000 income: you'll save ~$4,950 in income tax (4.95% to 0%). But Texas property taxes average 1.8% vs Illinois's 2.23%. On a $300K home, Texas property tax is ~$1,290 LESS than Illinois. Total savings: ~$6,240/year. On a $500K home with $150K income: savings jump to ~$9,575/year.
Surprisingly, often NO. Illinois exempts ALL retirement income from state tax—Social Security, pensions, 401(k), IRA distributions. A retiree with $80,000/year from retirement accounts pays $0 state income tax in Illinois. In Texas, you save $0 on income tax (already 0%) but still pay property tax. Illinois retirees should compare property taxes only.
Higher property taxes in good school districts (2%+ in suburbs), higher homeowners insurance (hurricane/hail risk), higher car insurance (more uninsured drivers), and HOA fees are more common. Energy costs spike in summer (AC) and can be volatile (remember 2021 freeze). Factor in $2,000-5,000/year beyond tax savings calculations.
Yes—Illinois will tax you as a resident if you maintain domicile there. To establish Texas residency: (1) spend 183+ days in Texas, (2) get Texas driver's license, (3) register to vote in Texas, (4) move financial accounts, (5) update estate documents. Keep a diary of days in each state. Illinois audits aggressively for escaped income tax.
El Paso has among the lowest property tax rates (~2.1%) combined with lower home prices. Houston (no zoning = cheaper homes) and San Antonio also rank well. Austin has high property taxes (~2.0%+) AND expensive homes—worst combination. Suburban Dallas varies by school district (Plano ~2.1%, Frisco ~2.0%). Fort Worth often beats Dallas suburbs.