Bottom line: Yes - moving from Illinois to Texas lowers your state income tax. On a $75,000 salary you would keep about $3,713 more per year.
| Salary (single) | Illinois tax | Texas tax | Difference |
|---|---|---|---|
| $50,000 | $2,475 | $0 | Save $2,475 |
| $75,000 | $3,713 | $0 | Save $3,713 |
| $100,000 | $4,950 | $0 | Save $4,950 |
| $150,000 | $7,425 | $0 | Save $7,425 |
| $250,000 | $12,375 | $0 | Save $12,375 |
Illinois: Illinois uses a flat 4.95% rate with personal exemptions rather than standard deductions.
Texas: Texas has no state income tax. The Texas Constitution prohibits a personal income tax without voter approval. The state relies heavily on property and sales taxes.
Your state income tax is set by where you are a resident, not where your employer is. To stop paying Illinois tax you must genuinely establish residency in Texas - register to vote, change your driver's license and car registration, move your primary home, and spend more than half the year there. High-tax states like Illinois audit departing high earners, so keep records of your move date.
In the year you move you typically file a part-year resident return in both states: Illinois taxes income earned while you lived there, Texas taxes the rest. Remote workers should note that a handful of states tax income sourced to the state even for non-residents - check before assuming a clean break.
Texas has NO state income tax - one of nine states with no wage income tax.
On a $75,000 single-filer salary, the state income tax difference is about $3,713/year (in your favor). Use the calculator for your exact income.
Once you establish residency in Texas and break Illinois residency, new income is taxed by Texas. Illinois can still tax income earned while you were a resident - file a part-year return for the move year.
Illinois tax calculator · Texas tax calculator · Paycheck calculator
Estimates use 2026 state brackets and the standard deduction for a single filer; they exclude local taxes, credits and federal tax. Verify with a tax professional before relocating.