Texas vs Illinois Taxes: Income, Property & Sales

Does Texas or Illinois have lower taxes? We answer that in a variety of ways below:

Texas vs Illinois Income Tax Comparison

	Texas	Illinois
Income Tax Rates & Thresholds	None	4.95%
Median Income	$74,640	$78,020
Income Tax Paid On Median Household Income	$9,189	$13,677
Income After Tax Based on Median Household Income	$65,451	$64,343

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Texas vs Illinois Property Tax Comparison

	Texas	Illinois
Average Property Tax Rate	1.25%	1.78%
Average House Price By State	$305,497	$254,128
Average Property Tax Owed Per Year	$3,819	$4,523
Income After Income Taxes & Property Taxes Based On Median State Household Income	$61,632	$59,820

Texas vs Illinois Sales Tax Comparison

	Texas	Illinois
Average State Sales Tax	6.25%	6.25%
Average Local Sales Tax Across the State	1.95%	2.56%
Average Combined Sales Tax Rate	8.20%	8.81%
Maximum Amount of Sales Tax Paid Based on Median Household Income	$4,671	$4,843
Maximum Disposable Income Based on Median Household Income	$56,961	$54,976

After Tax Comparison Earning $40,000 Per Year Filing As Single

	Texas	Illinois
Income Tax Owed	$3,040	$4,903
After Tax Income	$36,960	$35,097
Income After Income & Property Tax	$33,141	$30,574
Maximum Disposable Income After Income, Property & Sales Taxes	$30,630	$28,098

After Tax Comparison Earning $60,000 Per Year Filing As Single

	Texas	Illinois
Income Tax Owed	$5,968	$8,820
After Tax Income	$54,032	$51,180
Income After Income & Property Tax	$50,213	$46,657
Maximum Disposable Income After Income, Property & Sales Taxes	$46,408	$42,879

After Tax Comparison Earning $80,000 Per Year Filing As Single

	Texas	Illinois
Income Tax Owed	$10,368	$14,210
After Tax Income	$69,632	$65,790
Income After Income & Property Tax	$65,813	$61,267
Maximum Disposable Income After Income, Property & Sales Taxes	$60,826	$56,306

After Tax Comparison Earning $100,000 Per Year Filing As Single

	Texas	Illinois
Income Tax Owed	$14,768	$19,600
After Tax Income	$85,232	$80,400
Income After Income & Property Tax	$81,413	$75,877
Maximum Disposable Income After Income, Property & Sales Taxes	$75,243	$69,733

After Tax Comparison Earning $100,000 Per Year Filing As Married Filing Jointly

	Texas	Illinois
Income Tax Owed	$8,481	$13,196
After Tax Income	$91,519	$86,804
Income After Income & Property Tax	$87,700	$82,281
Maximum Disposable Income After Income, Property & Sales Taxes	$81,054	$75,619

After Tax Comparison Earning $150,000 Per Year Filing As Married Filing Jointly

	Texas	Illinois
Income Tax Owed	$18,536	$25,726
After Tax Income	$131,464	$124,274
Income After Income & Property Tax	$127,645	$119,751
Maximum Disposable Income After Income, Property & Sales Taxes	$117,972	$110,055

After Tax Comparison Earning $200,000 Per Year Filing As Married Filing Jointly

	Texas	Illinois
Income Tax Owed	$29,536	$39,201
After Tax Income	$170,464	$160,799
Income After Income & Property Tax	$166,645	$156,276
Maximum Disposable Income After Income, Property & Sales Taxes	$154,016	$143,622

After Tax Comparison Earning $250,000 Per Year Filing As Married Filing Jointly

	Texas	Illinois
Income Tax Owed	$41,455	$53,595
After Tax Income	$208,545	$196,405
Income After Income & Property Tax	$204,726	$191,882
Maximum Disposable Income After Income, Property & Sales Taxes	$189,211	$176,345

FAQ

Does Texas or Illinois have lower income taxes?

Texas’s income tax falls into the following range: None

Whereas Illinois’s income tax is the following 4.95%

Does Texas or Illinois have lower property taxes?

Texas has an average property tax rate of 1.25%

In comparison, Illinois has an average property tax rate of 1.78%

Does Texas or Illinois have lower sales taxes?

Texas has a state sales tax rate of 6.25% and an average local rate of 1.95% for a combined total rate of 8.20%.

In contrast, Illinois has a state sales tax rate of 6.25% and an average local rate of 2.56% for a combined total rate of 8.81%.

Do you get to keep more money in Texas or Illinois?

Based on median household income after income, property and sales taxes Texas gives you a maximum amount of disposable income of $56,961

In comparison, Illinois gives you $54,976.

More Comparisons:

Texas vs Ohio
Texas vs Georgia
Texas vs North Carolina
Texas vs Michigan
Texas vs New Jersey

Sources:

https://en.wikipedia.org/wiki/State_income_tax#Rates_by_jurisdiction

https://www.bankrate.com/real-estate/property-tax-by-state/#by-state

https://fred.stlouisfed.org/release/tables?eid=259515&rid=249

https://www.fool.com/the-ascent/research/average-house-price-state/

https://taxfoundation.org/data/all/state/2022-sales-taxes/

https://www.forbes.com/advisor/income-tax-calculator/