Illinois uses a flat 4.95% state income tax. Chicago does not levy a local wage tax — select Chicago in our calculators and city/local tax shows $0.
Our summary ranks Illinois #4 for savings vs. Texas (~$19,600/yr on defaults).
Also read: Illinois exit & residency · Pending IL proposals
Illinois tax snapshot (our data)
| Category | Illinois (typical) | Notes |
|---|---|---|
| State income tax | 4.95% flat | ~$14,850/yr at $300,000 W-2 + business; ~$9,900 at $200,000 W-2 only |
| Business / pass-through | Same flat rate | ~$4,950 incremental tax on $100,000 business income in our model |
| Chicago local wage tax | $0 | State tax only |
| Typical 3-bedroom home | ~$476,000 | Chicago metro $/sq ft × ~1,700 sq ft |
| Property tax (effective) | ~2.08% | ~$9,700/yr after ~$10k homestead |
| Combined sales tax | ~8.85% | ~$5,310/yr on $60,000 spending |
| Gas (~1,000 gal/yr, 2 cars) | ~$3,500/yr | |
| Vehicle registration | ~$302/yr | 2 cars |
| Auto insurance | ~$3,600/yr | 2 cars |
Illinois → Texas: example savings
| Line item | Approx. annual difference (IL − TX) |
|---|---|
| State income tax (W-2 + business) | ~$14,850 |
| Property tax (3-bed each state) | ~$5,300 |
| Living costs (2 cars) | Roughly even |
| Sales tax | ~$390 |
| Rough combined | ~$19,600/yr |
The 30-year combined summary debt-free headline — annual savings plus typical home purchase difference, compounded at 6% — is roughly ~$2.1M in our model.
Collar-county homeowners may pay more — edit property calculator or use Home Prices with Chicago (~$280/sq ft).
Destinations we cover
Before you go
- Model all four calculator blocks — split W-2 and business income
- Illinois exit & residency
- CPA consult before business or asset sales
Next step: Estimate savings
Disclaimer: This article is general information only — not tax, legal, or financial advice. Tax laws change frequently; residency and exit-tax rules depend on your specific facts. Consult a qualified CPA, tax attorney, or licensed advisor before changing domicile or selling assets.
Run your numbers before you move
Estimate income, property, sales, and living-cost savings with our free calculators — then talk to us about the move and getting your business running on day one.