Compare taxes and see how much you save moving from Illinois to Texas
Illinois has the second-highest average property tax rate in the United States at 2.07% — significantly above Texas at 1.60%. On a $400,000 home, Illinois homeowners pay approximately $1,880 more per year than their Texas counterparts. Unlike Texas, Illinois also levies a flat state income tax (4.95%), meaning Illinois households face a double burden: high property tax AND income tax. Texas homeowners pay more than many states but benefit from zero state income tax, making the overall Texas burden lower for most earners. Chicago and its suburbs are particularly expensive — effective rates in Cook County often exceed 2.5%.
Avg Effective Rate
2nd highest in the US; no assessment growth cap; Chicago suburbs especially high
Avg Effective Rate
High but below Illinois; $100K homestead exemption; no state income tax
At $400,000 home income:
Texas saves on property tax
| Income | IL Tax | TX Tax | Savings | 10-Year |
|---|---|---|---|---|
| $250,000 home | $5,175 | $4,000 | $1,175 | $11,750 |
| $350,000 home | $7,245 | $5,600 | $1,645 | $16,450 |
| $400,000 home | $8,280 | $6,400 | $1,880 | $18,800 |
| $500,000 home | $10,350 | $8,000 | $2,350 | $23,500 |
| $700,000 home | $14,490 | $11,200 | $3,290 | $32,900 |
| $1,000,000 home | $20,700 | $16,000 | $4,700 | $47,000 |
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Moving from Illinois to Texas? Partial-year residency returns, IL pension distribution treatment, and establishing TX domicile need expert guidance. Get matched with a CPA who specialises in state tax 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 →Illinois's high property taxes stem from several structural factors: a heavily fragmented local government system (over 7,000 taxing districts — the most in the US), heavy reliance on property tax to fund schools, no overall assessment growth cap (unlike California's Prop 13), and decades of underfunded public pensions that drive up local levy requirements. Illinois ranks #2 nationally for effective property tax rate — only New Jersey is higher. Chicago's Cook County averages 2.5–3% effective rate in many suburbs. The state has been unable to shift revenue from property tax to income tax due to constitutional constraints.
Illinois actually does NOT tax retirement income — all pension income, 401(k)/IRA distributions, Social Security, and military retirement pay are exempt from Illinois income tax. This is one of Illinois's genuine tax advantages for retirees. However, the high property tax still affects retired homeowners significantly: a retiree with a $400,000 Illinois home pays approximately $8,280/year in property tax versus $6,400 in Texas — a real annual cost even for those with zero income tax liability in Illinois.
Some Texas jurisdictions have effective rates approaching or exceeding Illinois's average: Harris County (Houston) suburbs with MUD districts can reach 2.0–2.5% total effective rates; Fort Bend County (southwest Houston) averages approximately 2.1%; some Dallas suburban MUD districts reach 2.2–2.5%. These areas are the exception — but Texans in high-rate jurisdictions can pay Illinois-level property taxes without the IL income tax benefit. Using our calculator with your specific zip code gives a more accurate picture.
For a household earning $100,000 with a $400,000 home: Illinois: property tax ~$8,280 + income tax ~$4,950 (flat 4.95%) = approximately $13,230 in combined property + state income tax. Texas: property tax ~$6,400 + income tax $0 = $6,400. Texas saves approximately $6,800/year in this scenario — with the savings growing the higher the income. For households earning $200,000: Illinois income tax adds ~$9,900; Texas adds $0. The total Illinois vs Texas tax differential is substantial at most income and home value combinations.