State-to-State Relocation Guide
Moving from Texas to Illinois
Planning a move from Texas to Illinois? Compare your 2026 take-home pay, Texas 0% personal income tax vs Illinois 4.95% flat rate, housing costs, and moving expenses.
Origin
Texas
Relocation route
Destination
Illinois
Interactive Paycheck Comparison
Recalculate federal, FICA, state, and county taxes instantly for any wage.
Take-Home Pay Difference (Estimated)
That equals approximately −$413/month difference on this salary scenario.
Texas
Current / Origin State
Estimated Annual Take-Home
$79,180
Illinois
Destination State
Estimated Annual Take-Home
$74,230
Take-Home Pay by Annual Salary ($50,000 – $200,000)
Comparing single filer take-home pay with 0 extra allowances. Shows Texas (0%), Illinois state-only (4.95%).
| Gross Salary | TX Tax | IL State Tax | TX Take-Home | IL Take-Home (State) | Annual Gap |
|---|---|---|---|---|---|
| $50,000 | $0 | $2,475 | $42,355 | $39,880 | −$2,475 |
| $75,000 | $0 | $3,713 | $61,593 | $57,880 | −$3,713 |
| $100,000 | $0 | $4,950 | $79,180 | $74,230 | −$4,950 |
| $125,000 | $0 | $6,188 | $96,739 | $90,552 | −$6,188 |
| $150,000 | $0 | $7,425 | $113,827 | $106,402 | −$7,425 |
| $200,000 | $0 | $9,900 | $148,963 | $139,063 | −$9,900 |
Hourly Wage Comparison (40-Hour Work Week)
Full-time hourly wages annualized over 2,080 hours per year (52 weeks at 40 hours) on a weekly pay schedule.
| Hourly Rate | Annual Gross | TX Net Annual | IL Net Annual | Annual Difference |
|---|---|---|---|---|
| $18/hr | $37,440 | $32,263 | $30,410 | −$1,853 |
| $25/hr | $52,000 | $43,962 | $41,388 | −$2,574 |
| $32/hr | $66,560 | $55,655 | $52,360 | −$3,295 |
| $40/hr | $83,200 | $67,361 | $63,243 | −$4,118 |
Occupation Salary & Take-Home Comparison
Comparing benchmark wages for high-value occupations against simulated take-home pay in Texas and Illinois. Baseline figures derived from official wage survey records.
| Occupation | Benchmark Gross | Texas Take-Home | Illinois Take-Home | Annual Difference |
|---|---|---|---|---|
| Software Engineer III | $165,000 | $124,079 | $115,912 | −$8,168 |
| Data Scientist | $150,000 | $113,827 | $106,402 | −$7,425 |
| Financial Analyst - Senior | $130,000 | $100,157 | $93,722 | −$6,435 |
| Registered Nurse (ICU) | $112,000 | $87,622 | $82,078 | −$5,544 |
| High School Teacher | $75,000 | $61,593 | $57,880 | −$3,713 |
* Explore detailed salary percentiles and net take-home calculations in the State Salary Directory and individual state paycheck calculators.
Cost of Living & Housing Overview
Statewide cost of living, housing costs, and rental pricing realities between Texas and Illinois.
Texas Sourced Indices
MERIC DataIllinois Sourced Indices
MERIC DataComprehensive Tax Structure Comparison
Comparing state income, county levies, state and local sales taxes, and residential property tax caps across both jurisdictions.
| Tax Category | Texas | Illinois | Context / Notes |
|---|---|---|---|
| State Individual Income Tax | 0.00% (No state income tax) | 4.95% (Flat rate on net income) | Statutory personal wage rate |
| State Disability / Paid Leave | $0 (No mandatory employee payroll tax) | $0 (PLAWA funded by employers) | Employee payroll deduction |
| Base State Sales Tax | 6.25% | 6.25% | State-level baseline rate |
| Combined Sales Tax Rate | 6.25% – 8.25% (Capped at 8.25%) | 6.25% – 10.25% (Chicago reaches 10.25%) | Average consumer retail rate |
| Average Effective Property Tax | ~1.80% (School/county ad valorem) | ~2.10% (Township multiplier & equalization) | Owner-occupied residence rate |
| State Estate / Inheritance Tax | None (Repealed under TX Constitution) | 0.80% – 16.0% on estates over $4,000,000 | Wealth transfer taxation |
| Gasoline Tax per Gallon | 20.0¢ / gallon (Flat excise) | 47.0¢ / gallon (Indexed excise + local taxes) | State motor fuel excise |
Job Market & Labor Force Profile
Civilian labor force scale, current unemployment rates, and leading industry clusters based on Bureau of Labor Statistics data.
| Economic Metric | Texas | Illinois | Source / Context |
|---|---|---|---|
| Total Civilian Labor Force | 15.2 million | 6.5 million | BLS labor force statistics |
| Unemployment Rate (Seasonally Adjusted) | 4.1% | 5.0% | BLS monthly employment release |
| Average Annual Wage Context | $67,300 | $71,800 | BLS QCEW all-industry average |
| Top Employment Sectors | Energy, Technology, Healthcare, Logistics, Aerospace | Finance/Trading, Manufacturing, Transportation/Logistics, Healthcare, Agriculture | Dominant industry clusters |
| State Minimum Wage | $7.25/hr (Federal baseline) | $14.00/hr ($15.00/hr in Chicago) | Statutory hourly wage floor |
Illustrative Interstate Relocation Costs
Estimated relocation expenses based on 1000 driving miles between representative Texas and Illinois metropolitan areas. These are mileage-based algorithm benchmarks, not mover quotes.
| Moving Service Tier | Estimated Cost | Scope of Service |
|---|---|---|
| DIY Truck Rental | $950 – $1,750 | Rental vehicle, mileage fees, fuel, tolls, and moving blankets. Self-packed and self-driven. |
| Standard Van Line | $2,800 – $4,500 | Professional loading, interstate freight transit, and unloading into target residence. |
| Full-Service Relocation | $6,400 – $10,300 | Full professional packing of all items, furniture disassembly, transit insurance, transport, and setup. |
* Calculated along representative interstate transit routes (1000 miles). Always verify USDOT licensing and obtain at least three written binding quotes.
First-Year Financial Impact
Comparing ongoing take-home differences against one-time relocation expenses. We distinguish between payroll withholding and total cost of living.
1. Ongoing Paycheck Difference
−$4,950
Annual take-home difference at $100,000 (state tax only).
2. One-Time Moving Cost
$2,800–$4,500
Illustrative typical van line estimate for 1000 driving miles.
3. First-Year Net Cash Flow
−$8,600
Paycheck difference minus median moving costs ($3,650).
Why We Don't Call Paycheck Deltas 'Savings'
A higher paycheck in Illinois does not automatically guarantee overall household savings. A true relocation budget spans three distinct layers:
- One-time moving expenses: Typical interstate moving runs between $2,800 and $4,500, which can offset the first year's tax difference.
- Local taxes & deductions: City or county wage taxes, local sales surtaxes, and municipal service fees can shift net household disposable income beyond state withholding.
- Housing and property taxes: Property tax rates, home prices, and rental listings in your specific neighborhood will exert a far larger financial influence than state withholding alone.
Key Differences & Trade-Offs
Objective side-by-side comparison across tax brackets, local levies, housing costs, labor data, and relocation mechanics.
Constitutional 0% vs. Flat 4.95% Statutory Rate
State Income TaxTexas
Texas imposes 0.00% personal income tax under Article VIII, Section 24-a of the Texas Constitution.
Illinois
Illinois levies a flat 4.95% individual income tax under the Illinois Income Tax Act (IL-700-T withholding schedules).
No City Income Taxes in Either State
Local Wage TaxesTexas
Texas statutes strictly prohibit municipal and county governments from levying local earned income taxes.
Illinois
Illinois state law bars cities, including Chicago, from imposing local personal earned income or payroll taxes.
Market-Value Appraisals vs. Township Multipliers
Property Tax & EqualizationTexas
Effective property tax rates average ~1.80% ($18.00 per $1,000 assessed), relying heavily on annual county appraisal district values.
Illinois
Statewide effective property taxes average ~2.10%, with Cook County and collar counties utilizing state equalization factors and high local school levies.
Statutory 8.25% Cap vs. Chicago 10.25% Peak
Sales Tax BurdensTexas
6.25% state baseline, with combined local additions legally capped at 2.0% for a maximum consumer rate of 8.25%.
Illinois
6.25% state baseline, but municipal and county home-rule additions push Chicago retail sales tax to 10.25%.
MERIC Composite Index Comparison
Cost of LivingTexas
MERIC composite index of 93.8 (6.2% below national baseline), with groceries at 76.9 and housing at 85.2.
Illinois
MERIC composite index of 95.2 (4.8% below national baseline), with groceries at 78.1 and housing at 90.1.
Flat 20.0¢ vs. Indexed 47.0¢ Motor Fuel Tax
Fuel & Transportation TaxesTexas
Texas imposes a flat 20.0¢ per gallon gasoline excise tax, unchanged since 1991.
Illinois
Illinois imposes an annually inflation-indexed motor fuel tax of ~47.0¢ per gallon, plus Cook County and Chicago local fuel levies.
Automobile Dependency vs. Dense Commuter Rail
Transit & Commuting InfrastructureTexas
Sprawling highway networks with extensive tollways (TxTag/NTTA); vehicle ownership is practically mandatory for daily errands.
Illinois
Chicagoland features Metra commuter rail and CTA trains and buses, enabling transit-oriented lifestyles without daily driving.
Intense Summer Cooling vs. Midwestern Winter Heating
Climate & Seasonal ExpensesTexas
ERCOT electric grid subject to triple-digit summer peak loads and convective hailstorm insurance premiums.
Illinois
Four distinct seasons with severe freezing winters, lake-effect snowfall, natural gas heating bills, and winter vehicle maintenance.
Relocation Financial Overview: Texas to Illinois
Relocating from Texas to Illinois marks a transition from a Sunbelt economic powerhouse to the industrial, agricultural, and financial core of the Midwest. Whether you are moving to Chicago for corporate leadership, finance, and cultural density, or settling into university hubs like Urbana-Champaign and Peoria, the financial landscape shifts immediately upon crossing state lines.
The headline distinction is state income tax. In Texas, Article VIII, Section 24-a of the Texas Constitution forbids any personal state income tax. In Illinois, every dollar of federally adjusted gross income (after the standard personal exemption) is subject to a flat 4.95% rate under the Illinois Income Tax Act.
On a standard $100,000 salary, moving from Dallas or Houston to Chicago reduces your annual net take-home pay by exactly $4,950—or $413 per month. Understanding how this tax difference intersects with housing costs, property levies, and transportation options is critical to budgeting your relocation.
Paycheck Breakdown: The Impact of Illinois’s Flat 4.95% Tax
Federal income tax brackets and mandatory FICA withholding remain unchanged regardless of where you reside. On a $100,000 salary for a single filer, your federal income tax of $13,170 and FICA contribution of $7,650 (6.2% Social Security up to the wage limit and 1.45% Medicare) are identical in Texas and Illinois.
Under Illinois Department of Revenue Form IL-W-4 withholding rules, employers apply a flat 4.95% rate across all taxable wage tiers. Unlike progressive states like California or New York, Illinois does not escalate brackets for higher earners, nor does it levy city-level earned income taxes. Whether you earn $60,000 or $300,000, your Illinois state wage tax rate remains 4.95%.
Compare personalized paycheck scenarios with 401(k) deductions, flexible spending accounts, and health insurance premiums on our Texas Paycheck Calculator and Illinois Paycheck Calculator.
Housing Dynamics: Comparing Texas Suburbs to Chicagoland
Housing costs between Texas and Illinois exhibit intriguing geographic divergence. According to MERIC cost-of-living data, Texas maintains a housing index of 85.2, whereas Illinois stands at 90.1—both comfortably below the national benchmark of 100.0.
In Texas metros like Dallas-Fort Worth, Houston, and San Antonio, single-family housing inventory has expanded rapidly into master-planned suburban developments. Median home purchase prices range from $320,000 to $360,000, with typical two-bedroom suburban apartments renting for $1,550 to $1,750 per month.
In Illinois, housing costs divide sharply between Chicagoland and downstate communities. In central Chicago neighborhoods (Lincoln Park, River North, West Loop), two-bedroom rentals average $2,400 to $3,200 monthly, and vintage condos command premium valuations. However, downstate cities (Rockford, Springfield, Bloomington) offer median home values below $200,000, providing substantially cheaper purchase opportunities than Texas urban centers.
Property Taxes: Two High-Rate States with Different Mechanics
Homeowners moving between Texas and Illinois encounter two of the highest property tax environments in the United States. In Texas, where local taxing units compensate for the absence of state income taxes, effective property taxes average roughly 1.80% of market value based on annual county appraisal district assessments.
In Illinois, effective property taxes average approximately 2.10% statewide, frequently exceeding 2.30% in suburban Cook, Lake, and DuPage counties. Illinois property taxes are calculated using local assessment ratios (10% of market value in Cook County for residential property), multiplied by state equalization factors and aggregate tax rates from independent school, park, library, and mosquito abatement districts.
A $400,000 home in suburban Chicago typically generates an annual property tax bill of $8,400 to $10,500, comparable to or slightly higher than a similar property in Collin or Fort Bend County, Texas. Illinois homeowners can utilize the general homestead exemption, but should prepare for substantial local ad valorem levies.
Everyday Costs: Sales Taxes, Gas Taxes, and Seasonal Utilities
Daily living costs reflect differing municipal policies. In Texas, state sales tax is 6.25% with a strict 2.0% local cap, ensuring combined rates never exceed 8.25%. In Illinois, the state baseline is also 6.25%, but home-rule municipal additions push combined sales taxes in Chicago to 10.25%, among the highest in major American cities.
Transportation expenses also skew higher in Illinois. Texas imposes a flat 20.0¢ per gallon motor fuel tax. Illinois levies an inflation-adjusted state motor fuel tax of ~47.0¢ per gallon, plus regional Cook County and Chicago local fuel taxes, making retail gasoline 40¢ to 80¢ more expensive per gallon in Illinois.
Utility expenses trade summer cooling for winter heating. Texas residents face steep summer electric bills driven by prolonged triple-digit heat waves and independent ERCOT power grid demands. In Illinois, winter natural gas heating bills and freezing temperatures replace summer AC spikes, requiring dedicated winterization budgets.
Career Opportunities and Industry Strength in Illinois
Moving to Illinois connects professionals with the Midwest’s preeminent economic engine. The Chicago metropolitan area hosts over 30 Fortune 500 headquarters, anchoring global leadership in financial derivatives trading (CME Group, Cboe), logistics, commercial food production, healthcare systems, and advanced manufacturing.
According to BLS QCEW figures, average annual wages in Illinois ($71,800) exceed Texas averages ($67,300) by roughly 6.7%. In specialized sectors such as quantitative finance, corporate law, supply chain management, and clinical healthcare, Chicago compensation packages often match or exceed coastal benchmarks, helping offset the flat 4.95% state income tax.
Budget approximately $2,000 to $4,500 for a 1,000-mile interstate move along the I-35 to I-55 corridor, account for initial rental security deposits, and update vehicle registrations with the Illinois Secretary of State within 30 days of establishing residency.
Exploring other moves from Texas or into Illinois?
Compare take-home pay, state tax brackets, and housing costs across other active relocation corridors:
Calculation Methodology & Official Standards
Withholding Engines: Calculations use PayAtlas's verified Texas and Illinois payroll withholding engines reflecting tax year 2026 rules. Texas calculations incorporate official state withholding schedules at No state tax. Illinois calculations follow official state guidelines at 4.95% effective.
Federal & FICA Consistency: Federal income tax brackets (IRS Rev. Proc. 2025-32) and FICA payroll taxes (6.2% Social Security up to the wage ceiling and 1.45% Medicare) remain identical between both states on equivalent gross wages.
Cost of Living & Wage Data: Cost-of-living metrics for both Texas and Illinois are sourced from official MERIC dataset records.
Last verified: October 6, 2026. This tool models standard W-2 payroll withholding and does not calculate end-of-year tax return credits.
Related Calculators & Relocation Guides
Estimate Only — Not Formal Tax Advice
This comparison models baseline W-2 paycheck withholding for Texas and Illinois (tax year 2026). It does not account for individualized itemized deductions, part-year residency allocations, or local municipal fees. Consult a licensed certified public accountant (CPA) or your company's payroll department before making relocation decisions.
Frequently Asked Questions
How much does my take-home pay decrease moving from Texas to Illinois?
Does Illinois have local city income taxes like New York or Ohio?
Are property taxes higher in Texas or Illinois?
What salary in Illinois equals my current Texas earnings?
How much higher is sales tax in Chicago compared to Texas?
How much does it cost to move from Texas to Illinois?
Can I live in Illinois without owning a car?
When do I become an Illinois resident for tax purposes?
verifiedOfficial Sources
- Texas Comptroller of Public Accounts ↗
- Texas Constitution — Article VIII, Section 24-a (Prohibition on Personal Income Tax) ↗
- IRS Revenue Procedure 2025-32 — federal brackets & standard deductions ↗
- IRS Publication 15 — Employer’s Tax Guide (FICA) ↗
- Illinois Department of Revenue — Booklet IL-700-T, 2026 Illinois Withholding Tax Tables (4.95% rate, $2,925 exemption allowance) ↗
- Illinois Department of Revenue — Form IL-W-4, Employee’s and Other Payee’s Illinois Withholding Allowance Certificate ↗
- Illinois Department of Revenue — IL-1040 Exemption Allowance Chart ($250,000 / $500,000 AGI limits) ↗
- Illinois Department of Revenue — Illinois income tax rate ↗
- 35 ILCS 5/201 — Illinois Income Tax Act (rate and taxable income) ↗
- Social Security Administration — annual fact sheet (wage base) ↗
- Bureau of Labor Statistics - QCEW ↗
Calculate Your Exact State Paycheck
Model custom 401(k) contributions, health insurance deductions, and county withholding on the official state calculators.