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HEAD-TO-HEAD TAX COMPARISON · 2026

COUNTRY A Illinois VS COUNTRY B Texas

Side-by-side analysis of income tax, effective rates, and take-home pay for Illinois and Texas in 2026.

Daniel · CountryTaxCalc Updated March 2026 Tax Comparison 2026
Calculate your take-home → See all comparisons →
OVERVIEW
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 ~$6,2…
Section 01

The Big Picture

Top-line rates and effective take-home for a typical earner — including income tax, social contributions, and applicable surcharges.
🏙️
COUNTRY A
Illinois
TAX RATE
4.95%
Flat Tax
But exempts retirement income
⭐
COUNTRY B
Texas
TAX RATE
0%
No Income Tax
1.6-2.2% property tax instead
TYPICAL ANNUAL DIFFERENCE
Moving from Texas → Illinois at $100,000-$150,000
$4,950-9,575
That's $413-798/month back in your pocket
Section 02

Tax Savings by Income Level

Net take-home after all income tax, social contributions, and surcharges — for a single employee with no dependents.
GROSS 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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🏙️

Illinois Pros & Cons

+ PROS
  • Retirement income exempt: Social Security, pensions, 401(k), IRA distributions = $0 state tax
  • Chicago job market: Finance, law, tech pay 20-40% more than Texas equivalent for many roles
  • No property tax explosion: Illinois's 2.23% is high but capped; Texas's 1.8% grows faster with valuations
  • International hub: O'Hare offers superior business connectivity vs Texas hubs
− CONS
  • 4.95% flat from first dollar: No brackets mean low earners pay same rate as high earners
  • Pension crisis: $140B+ unfunded liabilities—property taxes likely to rise to cover gap
  • Population decline: Illinois lost 100K+ residents to Texas in 2020-2024—economic momentum shifted
  • Cook County adds burden: If in Chicago area, additional county taxes and fees apply
⭐

Texas Pros & Cons

+ PROS
  • 0% income tax constitutional: Texas can't add income tax without voter approval—protected long-term
  • Business-friendly: Lower regulations, right-to-work state, corporate relocations booming
  • Population growth: Austin, Dallas, Houston adding hundreds of thousands—economic momentum
  • No state death tax: Texas has no estate or inheritance tax (Illinois has estate tax >$4M)
− CONS
  • Property tax catch: 1.6-2.2% rates can offset savings, especially on expensive homes in good school districts
  • School district taxes: Local school taxes vary wildly—same home in different district = $2,000+ difference
  • Lower wage sectors: While tech pays well, many industries pay 10-15% less than Illinois equivalents
  • Infrastructure strain: Rapid growth has outpaced roads, utilities, schools in some areas
FAQ

Frequently Asked Questions

How much will I actually save moving from Illinois to Texas?

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.

Is Texas better for retirees than Illinois?

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.

What are the hidden costs of moving to Texas?

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.

Do I need to change residency completely to avoid Illinois tax?

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.

Which Texas city has the lowest total tax burden?

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.
From the brief
PT38.4%−9.6 vs. headline
CY17.8%incl. 60-day rule
AE 0.0%substance required
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