Compare Illinois vs Texas Paychecks
VSDetailed comparison of tax rates, cost of living, and quality of life
📌 With 4.95% in Illinois and no income tax in Texas, someone earning $85,000 faces about $4,208 in annual tax variance. Texas's advantage lies in no income tax. urban professionals populations have been trending toward Texas, though corporate relocators continue finding value in Illinois despite the premium.
Between Illinois's 4.95% and Texas's no income tax, the tax differential hits around $4,208 yearly at $85,000. That's real money in anyone's book, even if the decision ultimately comes down to more than just tax policy.
🔑 Key Differences
- **State income tax**: Illinois at 4.95% vs Texas at no income tax
- **Annual savings** (on $85,000): Texas saves you ~$4,208
- **Tax system**: Both use progressive brackets
- **Deductions**: Standard federal deductions apply, state variations exist
- **Local taxes**: Check your specific county/city as rates vary within states
Tax Comparison
| Tax Type | Illinois | Texas |
|---|---|---|
| State Income Tax | 4.95% | No Income Tax Winner |
| 💰 On $40,000 Salary |
State Tax: $1,980
Take Home: $38,020
|
State Tax: $0
Take Home: $40,000
+$1,980
|
| 💰 On $60,000 Salary |
State Tax: $2,970
Take Home: $57,030
|
State Tax: $0
Take Home: $60,000
+$2,970
|
| 💰 On $100,000 Salary |
State Tax: $4,950
Take Home: $95,050
|
State Tax: $0
Take Home: $100,000
+$4,950
|
| Cost of Living | Illinois costs split dramatically between Chicago and downstate. Chicago proper commands high prices - rent for decent apartments often runs $1,500-2,500, with home prices in desirable neighborhoods exceeding $400,000. Suburbs provide more moderate housing but property taxes can reach $8,000-12,000 annually even for modest homes. Downstate cities like Springfield, Champaign, and Rockford offer genuine Midwest affordability with housing costs 40-60% below Chicago levels. Sales tax reaches 10.25% in Chicago, among the nation's highest. Utilities cost more during brutal winters. The cost division means identical salaries deliver vastly different lifestyles depending on location within Illinois. | Texas costs vary dramatically by region. Austin housing has exploded - median prices often exceed $500,000 in desirable areas. Parts of Dallas expensive. Houston offers better value given size. San Antonio, Fort Worth, and smaller cities maintain genuine affordability. Property taxes run high - often $4,000-8,000 annually even for modest homes. Sales tax reaches 8.25%. The no-income-tax advantage creates meaningful benefit, though property taxes substantial. |
Pros & Cons
Illinois
✓ Advantages
- Flat 4.95% state income tax is simple and predictable
- Strong job market in Chicago across multiple industries
- Central US location provides excellent transportation access
- Downstate areas offer affordable cost of living
- Major universities and research institutions
⚠ Considerations
- Property taxes among highest nationally, especially near Chicago
- State faces significant financial challenges
- Sales tax reaches 10.25% in Chicago
- Cold winters with substantial heating costs
- Chicago's high costs offset lower expenses elsewhere
Texas
✓ Advantages
- Zero state income tax keeps more money in your paycheck
- Diverse economy with opportunities in energy, tech, healthcare, and manufacturing
- Housing costs substantially lower than California or Northeast states
- No state estate or inheritance tax
- Business-friendly environment attracts employers
⚠ Considerations
- Property taxes average 1.6% of home value
- Sales tax ranges from 6.25% to 8.25%
- Summer heat can be intense
- Public transportation limited outside major cities
- Health insurance costs often higher
Bottom Line
Tax-wise, Texas wins with about $4,208 annual savings at $85,000. Illinois maintains pull through no income tax, which resonates particularly with corporate relocators. Recent trends show urban professionals moving to Texas, though Illinois continues drawing people who prioritize {factor}.📢 Share This Comparison
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