Illinois vs Texas: Keep $4,805 More Per Year in Texas (2026 Numbers)

Verdict: Texas keeps $4,805.21 more at $100K single

Illinois vs Texas take-home pay by income

Quick answer: Texas wins at every income because the federal tax and FICA are identical in both states — only Illinois adds the 4.95 percent flat tax. Compare your own salary with the Illinois paycheck calculator and the Texas paycheck calculator, then use the table below to see the full picture.

The table below shows single filers taking the 2026 standard deduction ($16,100). Federal tax uses 2026 IRS floors [0, 12400, 50400, 105700, 201775, 256225, 640600] at rates 10–37%. FICA is shown at a flat 7.65% and is identical in both states, so it never changes the gap. Illinois state tax is exactly 4.95% of gross minus the $2,925 exemption. Texas state tax is $0 at every income.

Amounts rounded to the nearest dollar except the Illinois state-tax column and savings column, which show exact cents. FICA shown at a flat 7.65%; above the Social Security wage base, actual FICA is lower in both states (the gap is unaffected because FICA is identical either way).

How each row was computed: Federal taxable income = gross minus $16,100. Federal = bracket math on the taxable amount (check: $83,900 taxable at $100K gives $1,240 + $4,560 + $7,370 = $13,170). FICA = gross x 7.65%. Illinois tax = 4.95% x (gross − $2,925); for example $97,075 x 4.95% = $4,805.21. Illinois take-home = gross − federal − FICA − Illinois tax. Texas take-home = gross − federal − FICA. Married filing jointly uses double the federal floors, a $32,200 standard deduction, and a $5,850 Illinois exemption pair, and Texas still wins by the same formula.

High earners: the gap grows in a straight line because a flat rate has no slabs — every extra $10,000 of salary costs exactly $495 more in Illinois and $0 more in Texas. At $250K the yearly saving passes $12,000, but read the property-tax twist below before deciding.

Flat versus zero: how the two systems work

Quick answer: Illinois taxes every dollar of income above the exemption at the same 4.95 percent rate, while Texas taxes none of it. That single difference explains the entire paycheck gap on this page.

Illinois uses a true flat tax under its state constitution: wages, salaries, bonuses, and business pass-through income all face 4.95 percent after the $2,925 personal exemption (plus additional exemptions for dependents and the blind or elderly). There are no brackets, so a $50,000 earner and a $500,000 earner face the same marginal rate. The Illinois Department of Revenue publishes the rate and exemption each year on Form IL-1040.

Texas has no personal income tax of any kind — no flat rate, no brackets, no state return. The Texas Comptroller confirms that wages, pensions, and investment income are all free of state income tax. Your federal tax and FICA are therefore the only paycheck taxes in Texas, which is why the calculator above shows Texas take-home as gross minus federal minus FICA and nothing else.

Because the Illinois formula is linear, you can estimate any salary in seconds: subtract $2,925, multiply by 0.0495. A $120,000 salary gives $117,075 x 4.95% = $5,795.21 of Illinois tax, and the same amount of extra take-home in Texas. There is no phase-in, cliff, or cap to model.

Moving from Illinois to Texas: pros and cons

Taxes are only half the decision. Here is the honest one-line version of each side — and if you want more state pairs like this one, browse our state tax comparison hub for more state pairs.

Illinois: pros and cons

Pros:

• Flat 4.95% rate is simple and predictable — no bracket creep as raises arrive.
• Generous retirement-income exclusion: Social Security, pensions, 401(k), and IRA income are exempt.
• No local income or wage tax anywhere, including Chicago.
• Reciprocal agreements with Iowa, Kentucky, Michigan, and Wisconsin simplify commutes.

Cons:

• Every paycheck loses 4.95% above a small exemption, while Texas loses nothing.
• Average effective property tax near 1.88% is among the highest nationally, with Cook County often higher.
• Combined Chicago sales tax near 10.25% is one of the highest big-city rates.
• High overall state and local debt load keeps future tax pressure elevated.

Texas: pros and cons

Pros:

• Zero state income tax at every income level.
• No state tax return to file, ever.
• Bigger take-home pay on every paycheck at any salary.
• $140,000 homestead exemption against school property taxes.

Cons:

• Average effective property tax of 1.47–1.68% is also among the highest nationally.
• Combined sales tax up to 8.25% with local add-ons.
• Heavy reliance on property tax means bills move with local budgets and appraisals.
• Franchise and business margins taxes can matter for the self-employed and owners.

Property tax twist: Illinois 1.88% vs Texas 1.47–1.68%

Quick answer: this is the one category where Illinois can look worse, not better. Both states have high property taxes, but Illinois averages about 1.88 percent — above the Texas 1.47–1.68 percent range — and Chicago-area bills with Cook County levies often run higher still.

• Illinois average effective rate near 1.88% with no statewide homestead cap comparable to Texas school-tax relief (see Tax Foundation property-tax data and Census housing data).
• Texas average effective 1.47–1.68% with a $140,000 homestead exemption against school taxes (see the Texas Comptroller property-tax office).
• $300K home: Texas runs about $4,410–$5,040 per year before the school-tax break; Illinois at 1.88% runs about $5,640 per year before local exemptions.
• Chicago twist: Cook County reassessment cycles plus city, school, park, and county layers stack fast — always check the actual PIN bill, not the state average, and confirm exemptions with the Cook County Assessor.

Unlike income tax, property tax does not automatically favor Texas by thousands — but here Illinois gives Texas no shelter either. A renter moving to Texas keeps the full income-tax saving with no property bill. A buyer should run both numbers: take the paycheck saving from the table above, then subtract the county-specific property-tax difference for the exact address. On a mid-priced home the income-tax saving usually still wins in Texas; on a high-assessed Chicago home versus a modest Texas home, Texas wins twice.

Try it in the calculator above: enter an optional home value to see a rough property-tax estimate for both states next to your take-home comparison.

Sales tax and withholding forms

Illinois levies a 6.25% state base sales tax, but Chicago-area combined rates reach about 10.25% after county, city, and transit add-ons — among the highest major-city totals. Texas charges a 6.25% state base rate with local add-ons capped at a combined 8.25%. Groceries and medicines get partial breaks in both states, while restaurant meals are fully taxable. For a household spending $30,000 on taxable goods, a two-point combined-rate difference is about $600 per year — real money, but far smaller than the $4,805 paycheck gap at $100K.

Withholding forms: IL-W-4 vs federal W-4

Illinois requires federal Form W-4 plus state Form IL-W-4 for withholding, while Texas needs only federal Form W-4 because it has no state income tax. After your move, file a new W-4 with your Texas address and confirm Illinois withholding stops on the next payroll cycle. Keep the confirmation so Illinois does not continue withholding 4.95% after you leave.

Reciprocity note for border commuters

Illinois holds income-tax reciprocal agreements with Iowa, Kentucky, Michigan, and Wisconsin: commuters who live in one state and work in the other pay tax only to their home state by filing an exemption certificate with their employer. Texas holds no reciprocal agreements because there is no Texas income tax to reciprocate — a Texas resident working in another taxing state generally files there as a nonresident. Remote workers are taxed where they physically perform the work, so multi-state workdays need a day-count log. Confirm current agreement status with the Illinois Department of Revenue before relying on reciprocity for a move year.

Retiree note: Illinois is friendlier than it looks

Illinois fully exempts Social Security benefits, pension income, 401(k) withdrawals, and IRA distributions from its 4.95% tax — one of the broadest retirement exclusions in the country. Texas exempts the same income by having no income tax at all, so retirees face $0 state income tax in both states. For retirees the decision therefore turns on property tax on the specific home, sales tax on spending, housing costs, and healthcare access rather than paychecks. If you keep a Chicago condo with a high assessment, Texas often still wins; if you own a modest downstate home with exemptions, the gap narrows sharply.

Moving from Illinois to Texas checklist

Quick answer: the tax saving only sticks if Illinois agrees you left. Work through these 8 steps in order, keep every proof, and file a final part-year Illinois return.

1. Fix your move date and keep lease or deed proof. Your part-year split, credits, and any residency questions all anchor to this date — save the signed lease or closing papers.
2. Get your TX license within 90 days and register to vote. A Texas license plus voter registration are the strongest residency signals Illinois looks for.
3. Register your vehicles and notify Illinois. Transfer plates and registration to Texas, update insurance garaging address, and close out Illinois records tying you to the old address.
4. Give payroll a new W-4 with your Texas address and stop IL withholding. Confirm the change lands before the next pay cycle and keep the confirmation.
5. Shift bank, medical, and insurance ties. Move accounts, doctors, memberships, and policies — residency tests weigh closest connections, not just your address.
6. File an IL part-year return and split wages by move date. Report only Illinois-period income to Springfield; a move can also change your refund math, so check our federal tax refund calculator for the move year.
7. Drop IL-W-4 and keep only the federal W-4. Texas has no state withholding form, so state withholding should be zero from the move forward.
8. Keep a proof folder for first-year notices. Store copies of the lease or deed, utility bills, and license together — most post-move inquiries are settled with paperwork, not penalties.