Illinois vs Texas: which really costs more?
Two big states that pay for government in very different ways.
Most of the gap here is income tax. Sales tax lands in much the same place in both, so what you keep from your pay is the part that really moves. The purchase they disagree about most is home purchase. After that it is car purchase and then wedding. Everything below is sorted the same way, biggest gap first, so the things that barely differ sink to the bottom where they belong.
Two large states with very different approaches to funding government, frequently compared for business relocation.
The dominant term is the income tax differential; the combined sales tax rates are within a rounding band of each other, so take-home rather than consumption drives the spread below. Largest absolute divergence by category: home purchase. Then car purchase, then wedding.
Illinois
- Income tax rate
- 4.95%
- On a $75,000 salary
- 4.76%
- Rank of 51
- 7
- Combined sales tax
- 8.98%
- Rank of 51
- 8
Texas
- Income tax rate
- none
- On a $75,000 salary
- 0%
- Rank of 51
- 43
- Combined sales tax
- 8.25%
- Rank of 51
- 13
Beyond income and sales tax
A home costs more to keep in Illinois, where property tax takes 2.01% of its value each year. In Texas it is 1.49%. Illinois also taxes large estates when someone dies, above $4,000,000.00. Texas does not. At the pump, Illinois adds 50¢ 49.6¢ of state tax to every gallon. Texas adds 20¢.
Effective property tax rate: about 2.01% of market value in Illinois against about 1.49% in Texas — a holding cost the income and sales tax figures above do not capture. Illinois levies a state estate tax with an exemption of $4,000,000; Texas levies none. State gasoline excise: 50¢ 49.6¢ per gallon in Illinois, 20¢ in Texas.
The income tax figure is what one person earning $75,000.00 pays to the state, as a share of that pay. The sales tax figure is the combined state and local rate. Both come from the same checked data the calculator uses.
Income tax is the effective state rate at $75,000 for a single filer, not a marginal rate. Sales tax is the combined state and local rate at each state's representative county where one is modeled, and a statewide average for the forty-five jurisdictions that carry no named county. Both figures come from the same verified datasets the calculator uses.
Illinois against Texas
A $75,000 salary
| Measure | Illinois | Texas |
|---|---|---|
| Take-home pay | $58,025 | $61,593 |
| Worth after local prices | $58,697 | $63,383 |
| Share of pay taxed | 22.63% | 17.88% |
| State sales tax | 6.25% | 6.25% |
| Groceries exempt here | Yes | Yes |
| Clothing exempt at $100 | No | No |
| Property tax rate | 2.01% | 1.49% |
| Price level | 98.9 | 97.2 |
| Housing prices | 92.4 | 97.4 |
| Fuel tax | 49.6¢ | 20¢ |
| Tobacco tax | $2.98 | $1.41 |
City income tax excluded. Sales-tax row: state-only. Exemptions: Illinois, Statewide average; Texas, Harris County (Houston). Clothing: one $100 item; higher prices can change tax.
Where each state is strong
A $75,000 salary
Further out is better on every axis. Axes use fixed national ranges, not the two states alone.
Where each state takes it
A $75,000 salary
- Income
- Sales
- Property
| Tax | Illinois | Texas |
|---|---|---|
| Income, all levels | $16,975 | $13,408 |
| Sales, on that spending | $1,088 | $1,155 |
| Property, on that home | $4,024 | $2,982 |
Assumes 30% of take-home spent on taxable goods and a $200,000 home. Three bases, so never summed.
What gets taxed, in each
A $75,000 salary
Illinois
Statewide average
Texas
Harris County (Houston)
- Sales tax
- Fuel
- Tobacco
| Category | Illinois | Texas |
|---|---|---|
| Groceries | Exempt | Exempt |
| Clothing at $100 | 8.98% | 8.25% |
| Fuel | 49.6¢ | 20¢ |
| Tobacco | $2.98 | $1.41 |
Grocery and general rates use the locations named here. Clothing is one item priced at $100; a more expensive garment may be taxed differently. Fuel and tobacco have separate units and scales.
What you would need there
A $75,000 salary
| To match take-home only | $69,929 |
|---|---|
| You could take a cut of | −$6,473 |
| Prices in Texas | 97 vs 99 |
State taxes and state price levels only. No city tax, and no housing market.
What things actually cost in each
These are the amounts you would need to earn before tax to pay for each thing, at a $75,000.00 salary. Biggest gaps first.
Gross income required at $75,000, using each category's default assumptions, sorted by the absolute difference between the two states.
| Category | Illinois | Texas | Difference |
|---|---|---|---|
| Home purchase | $1,342,439 | $1,185,852 | $156,586 cheaper in Texas |
| Car purchase | $142,341 | $132,099 | $10,242 cheaper in Texas |
| Wedding | $50,091 | $46,162 | $3,929 cheaper in Texas |
| Coffee habit | $27,403 | $25,305 | $2,099 cheaper in Texas |
| Used car from a private seller | $19,996 | $18,465 | $1,532 cheaper in Texas |
| Car payment or lease | $17,780 | $16,529 | $1,251 cheaper in Texas |
| Funeral | $12,232 | $11,372 | $861 cheaper in Texas |
| Phone plan | $10,536 | $9,794 | $741 cheaper in Texas |
| Jewelry | $5,832 | $5,386 | $447 cheaper in Texas |
| Pet annual cost | $2,580 | $2,382 | $198 cheaper in Texas |
| Rent | $2,752 | $2,559 | $194 cheaper in Texas |
| Furniture | $2,500 | $2,308 | $191 cheaper in Texas |
| Laptop or phone purchase | $2,000 | $1,846 | $153 cheaper in Texas |
| Major appliance | $1,833 | $1,693 | $140 cheaper in Texas |
| Sofa bed | $1,666 | $1,539 | $128 cheaper in Texas |
| Childcare | $1,682 | $1,564 | $118 cheaper in Texas |
| Mattress | $1,500 | $1,385 | $115 cheaper in Texas |
| Winter tires | $1,500 | $1,385 | $115 cheaper in Texas |
| Tires | $1,333 | $1,231 | $102 cheaper in Texas |
| Bicycle | $1,166 | $1,077 | $89 cheaper in Texas |
| Espresso machine | $1,166 | $1,077 | $89 cheaper in Texas |
| Office chair | $1,000 | $923 | $77 cheaper in Texas |
| Hotel stay | $1,070 | $994 | $75 cheaper in Texas |
| Theme park day | $846 | $781 | $64 cheaper in Texas |
| Air conditioner | $833 | $769 | $64 cheaper in Texas |
| Back-to-school clothes | $833 | $769 | $64 cheaper in Texas |
| Games console | $833 | $769 | $64 cheaper in Texas |
| Lawn mower | $750 | $692 | $57 cheaper in Texas |
| Camping gear | $708 | $654 | $54 cheaper in Texas |
| Power tools | $667 | $615 | $51 cheaper in Texas |
| Suit | $667 | $615 | $51 cheaper in Texas |
| Health insurance premium | $688 | $640 | $48 cheaper in Texas |
| School uniform | $600 | $554 | $46 cheaper in Texas |
| Vacuum cleaner | $583 | $539 | $45 cheaper in Texas |
| Gift card | $612 | $569 | $43 cheaper in Texas |
| Student loan payment | $612 | $569 | $43 cheaper in Texas |
| Vet visit | $550 | $512 | $39 cheaper in Texas |
| Cookware | $500 | $462 | $38 cheaper in Texas |
| Domestic flight | $501 | $466 | $35 cheaper in Texas |
| Running shoes | $433 | $400 | $33 cheaper in Texas |
| Luggage | $417 | $385 | $32 cheaper in Texas |
| Work uniform | $367 | $339 | $28 cheaper in Texas |
| Meal kit | $367 | $341 | $26 cheaper in Texas |
| Winter coat | $333 | $308 | $26 cheaper in Texas |
| School supplies | $300 | $277 | $23 cheaper in Texas |
| Utilities | $321 | $299 | $23 cheaper in Texas |
| Weekly groceries | $268 | $249 | $19 cheaper in Texas |
| Car insurance | $252 | $235 | $18 cheaper in Texas |
| Concert ticket | $227 | $210 | $17 cheaper in Texas |
| Clothing | $200 | $185 | $15 cheaper in Texas |
| Grocery delivery | $217 | $202 | $15 cheaper in Texas |
| Storage unit | $199 | $185 | $14 cheaper in Texas |
| Birthday cake | $184 | $171 | $13 cheaper in Texas |
| Restaurant dinner | $160 | $148 | $12 cheaper in Texas |
| Costume | $150 | $139 | $11 cheaper in Texas |
| Rental car | $417 | $407 | $11 cheaper in Texas |
| Swimwear | $142 | $131 | $11 cheaper in Texas |
| Pet food | $100 | $92 | $7.67 cheaper in Texas |
| Cannabis (legal states) | $108 | $101 | $7.63 cheaper in Texas |
| Internet service | $107 | $100 | $7.54 cheaper in Texas |
| Baby clothes | $92 | $85 | $7.01 cheaper in Texas |
| Sunscreen | $92 | $85 | $7.01 cheaper in Texas |
| First aid supplies | $75 | $69 | $5.76 cheaper in Texas |
| Gym membership | $75 | $69 | $5.76 cheaper in Texas |
| Streaming bundle | $75 | $69 | $5.76 cheaper in Texas |
| Toiletries | $67 | $62 | $5.10 cheaper in Texas |
| Baby formula | $69 | $64 | $4.85 cheaper in Texas |
| Gas fill-up | $69 | $64 | $4.85 cheaper in Texas |
| Pizza delivery | $62 | $57 | $4.66 cheaper in Texas |
| Haircut | $64 | $60 | $4.52 cheaper in Texas |
| Vitamins and supplements | $58 | $54 | $4.47 cheaper in Texas |
| Food delivery | $59 | $55 | $4.37 cheaper in Texas |
| Deli sandwich | $55 | $51 | $4.21 cheaper in Texas |
| Prescription refill | $47 | $43 | $3.87 cheaper in Texas |
| Books | $50 | $46 | $3.82 cheaper in Texas |
| Cinema ticket | $49 | $46 | $3.77 cheaper in Texas |
| Soft drinks | $40 | $37 | $3.07 cheaper in Texas |
| Coffee beans | $37 | $34 | $2.59 cheaper in Texas |
| Frozen meals | $34 | $31 | $2.38 cheaper in Texas |
| Rideshare trip | $34 | $31 | $2.38 cheaper in Texas |
| Over-the-counter medicine | $25 | $23 | $1.92 cheaper in Texas |
| Energy drinks | $23 | $22 | $1.79 cheaper in Texas |
| Candy | $20 | $18 | $1.54 cheaper in Texas |
| Fast food meal | $20 | $18 | $1.54 cheaper in Texas |
| Bread and bakery | $21 | $20 | $1.51 cheaper in Texas |
| Bar drink | $18 | $17 | $1.39 cheaper in Texas |
| Snack food | $18 | $17 | $1.30 cheaper in Texas |
| Cigarettes or vape | $15 | $14 | $1.17 cheaper in Texas |
| Bottled water | $15 | $14 | $1.07 cheaper in Texas |
| Bottled juice | $14 | $13 | $0.97 cheaper in Texas |
| Dry cleaning | $61 | $62 | $0.38 cheaper in Illinois |
Across the 91 things we can price in both states, Texas comes out cheaper more often. That is not the whole story. Housing, wages and property tax move far more than sales tax does, and none of them are in these numbers. See limitations.
Across the 91 categories computable in both states, Texas is cheaper more often. ⚠️ This compares tax treatment alone: housing costs, prevailing wages and property tax vary far more between states than sales tax does, and none of them enter these figures. See limitations.
Questions people ask
One of these has no income tax — is it simply the cheaper one?
Not on its own. A state without an income tax has to raise the money somewhere else, so the comparison only means something once sales and property are counted too. The pair here differs by about 0.73% on the sales side, which is where a good deal of that difference reappears.
Do the different taxes point the same way for this pair?
Unusually, yes. Most pairs trade one tax against another; these two line up, which makes the comparison hold across very different spending patterns.
How much would moving between these two actually change?
Materially, on at least one tax. That makes this a pair where running your own numbers changes the answer rather than confirming it.
Does the absence of an income tax make this the lower-burden state?
One state levies no personal income tax on wages and the other does. Revenue substitution means the comparison is only meaningful across all three bases: the combined sales rate differs by about 0.73%, and property tax is levied independently. ⚠️ Relative burden depends on a household's income, consumption and property mix, and reverses across that range for many pairs.
Do the levies rank these states consistently?
Both levies rank these states in the same direction, so the burden ordering is stable across consumption patterns rather than reversing at some spending share. ⚠️ Property tax is levied independently and is not included in that consistency; it can still reverse the total for a homeowner.
How material is this differential?
At least one levy differs materially between these states. Aggregate effect is income- and consumption-dependent and should be computed for the specific household rather than inferred from headline rates; the ordering can still reverse once property tax is included.