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State Comparison Guide
Living in Illinois vs. Texas: Take-Home Pay and Tax Differences
Updated for the 2026 Tax Year • 5 min read
Choosing where to live and work between Illinois and Texas has a profound effect on your financial bottom line. Illinois employs a flat personal income tax rate of 4.95% across all taxable earnings. Relocating to Texas erases this state withholding entirely, resulting in immediate monthly savings on identical gross wage compensation.
Key Tax Differences
- Illinois State Tax: Flat Rate (4.95%).
- Texas State Tax: 0.00% (No State Income Tax).
- Federal Deductions: Both states are subject to IRS federal withholding and mandatory FICA contributions (6.2% Social Security and 1.45% Medicare).
$100,000 Annual Salary Take-Home Comparison
| Withholding Category | Illinois ($100k) | Texas ($100k) |
|---|---|---|
| Gross Salary | $100,000 | $100,000 |
| Federal Income Tax (Est.) | ~$13,600 | ~$13,600 |
| FICA (Social Security & Medicare) | $7,650 | $7,650 |
| State Income Tax (PIT) | ~$4,750 | $0.00 |
| Mandatory State Deductions / SDI | $0.00 | $0.00 |
| Estimated Annual Net Pay | ~$74,000 | ~$78,750 |
Estimated net pay difference: +$4,750 in Texas.
Illinois Calculator
Calculate exact take-home pay based on Illinois state rules.
Texas Calculator
Estimate your net paycheck under Texas tax regulations.