Illinois to Texas Retirement Taxes (2026): Every Tax That Changes

Updated July 25, 2026. Quick answer (2026): Moving from Illinois to Texas in retirement, the income-tax saving is zero — both states already leave retirement withdrawals alone. The money is at death. Four separate taxes change when you move — state income tax on withdrawals, state estate tax, state inheritance tax, and what probate costs your heirs. Most comparisons only price the first one.

Illinois vs Texas: every tax that changes

Every cell is quoted from our statute-cited 51-jurisdiction dataset. Download the full dataset as CSV.

1. What changes on your annual tax bill

Nothing. Illinois already leaves retirement withdrawals untaxed: Fully exempt: all federally taxed retirement income is subtracted — qualified employer plans (401(k), 403(b), 457), traditional IRA distributions (including Roth conversions), private and government pensions, railroad retirement. Texas does not tax them either. If you are moving for the income-tax saving alone, there is no saving to collect — and that is the single most common mistake in Illinois relocation math.

2. What changes at death: state estate tax

This is usually the larger number. Illinois levies an estate tax — yes – $4,000,000 exclusion (not indexed, not a true exemption: estates over $4M are taxed using the pre-2001 federal state-death-tax-credit table on the full taxable estate); effective marginal rates commonly stated as 0.8%-16%; administered by the IL Attorney General — and Texas levies none (none). Establishing domicile in Texas removes that exposure for assets that are not Illinois real property.

3. What changes at death: state inheritance tax

Neither state levies an inheritance tax. Illinois: none Texas: none

4. The one nobody prices: what probate costs your heirs

Illinois uses a reasonable-fee fee model (Reasonable compensation for representatives (755 ILCS 5/27-1) and attorneys (755 ILCS 5/27-2); no percentage schedule.); Texas uses a hybrid model (Executor/administrator standard compensation is statutory (Tex. Estates Code §352.002): 5% commission on cash actually received plus 5% on cash actually paid out (excluding e.g. cash on hand/bank deposits at death and distributions to heirs), capped in aggregate at 5% of the gross fair market value of the estate subject to administration. Attorney fees are reasonable. Note: most Texas probates are independent administrations where compensation is often governed by the will. Verified.). Filing fees — Illinois: varies by county Texas: County clerk / statutory probate court fees vary by county; typically ~$250-$450 to file an application for probate. Representative range from county schedules, not verified against a single official statewide source.

Full detail: probate cost by state and small-estate limits by state.

Does this actually apply to you?

Below $1,000,000 no US state estate tax applies anywhere — Oregon has the lowest threshold in the country and that is where it starts. So for most estates the whole “escape the death tax” framing is irrelevant, and the only thing that changes when you move is your annual income tax. Here is exactly where the line falls for this pair:

Thresholds are the 2026 figures in our verified dataset and apply to the taxable estate. Federal estate tax is separate and far higher. Test your own number with the comparison tool.

Probate cost in each state, specifically

Illinois uses a “reasonable fee” standard with no schedule, and its small-estate route does not clear a solely owned house. Texas uses a hybrid standard — a statutory bound with reasonableness inside it, and its statute does not say whether that route reaches real property. The two states differ on that question, which is exactly the kind of thing a move changes. Full figures with the governing statute, the court filing fee and the small-estate threshold: Illinois probate cost and Texas probate cost.

Four taxes, two states, one order of operations

Everything above changes together: what Illinois stops taking on withdrawals, what Texas does not take at death, and what probate costs in each. The order you do things in — when you establish domicile, when you convert, when you retitle property — changes the total, and some of it cannot be undone afterwards. If a move is genuinely on the table, here is what to look for in an advisor who knows both Illinois and Texas. If you would rather price it yourself first, the two-state comparison tool is free and asks for no email.

Will Illinois still tax me after I move to Texas?

Not on your retirement withdrawals, once you genuinely change domicile — but that is a harder test than a change of address, and what you leave behind stays in reach.

• Domicile is a test, not a mailing address. A departing state can and does audit residency. Days present, voter registration, driver’s licence, where your doctors and advisers are, and where you keep what you value all count.
• Real property left behind stays taxable. Keeping a home in Illinois can keep part of the estate within reach of Illinois rules even after you become a Texas resident.
• A Roth conversion is taxed where you live in the year you convert. Sequencing a conversion after establishing the new domicile is often worth more than the annual saving — see how all 51 jurisdictions tax Roth conversions.

If you keep a home in Illinois, what happens at death?

Changing domicile moves you. It does not move the house. Illinois levies an estate tax, and it reaches a nonresident decedent’s real property situated there — so a home kept behind after the move stays within Illinois’s reach even once Texas is your legal home for every other purpose. For nonresidents the property with Illinois taxable situs is real estate and tangible personal property physically situated in Illinois, including any such property held in trust.

Applies where the entire estate exceeds the $4,000,000 exclusion; tax computed as if resident then apportioned by the Illinois-to-total ratio. The practical consequence is the part most summaries skip: the statute reaches property held in trust, so a revocable trust does not move it out of Illinois. Authority: Illinois Attorney General Form 700 instructions.

This is the exposure that survives a move, and it is the one worth pricing before the move rather than after. The house also stays within that state’s probate jurisdiction, so the estate faces a separate ancillary proceeding there on top of the probate where you live — the ancillary probate calculator prices that second proceeding. Confirm the current figures with the state revenue department or a licensed professional before acting — thresholds move, and the arithmetic depends on the whole estate, not just the house.

Full state detail

Every figure above is summarized. The complete statute-cited breakdown for each state: Illinois retirement taxes and Texas retirement taxes. To compare any other pair, start at the retirement tax relocation hub.

Widen the comparison

This page prices one corridor. To see every destination Illinois retirees consider and every origin state moving to Texas, start there instead. For any pair not covered, the retirement tax comparison tool runs all 51 jurisdictions, and the probate cost calculator works out what settling the estate costs in each.

Talking this through

Relocation timing, Roth conversion sequencing and estate exposure interact, and the order you do them in changes the total. If you want a second opinion, understand what it should cost first — see our advisor cost guide.

Disclosure: the button above routes to an advertising partner and Clear Money Guide may earn a referral fee. See our Affiliate Disclosure.

Primary sources

• 35 ILCS 5/203(a)(2)(F)
• IDOR Publication 120 (Retirement Income)
• 35 ILCS 405/2(b)
• 35 ILCS 405/3
• Tex. Const. art. VIII, § 24-a
• 755 ILCS 5/27-1
• 755 ILCS 5/27-2
• 755 ILCS 5/25-1 (P.A. 104-0346)
• Tex. Estates Code §352.002
• Tex. Estates Code §205.001
• Tex. Estates Code ch. 257

Methodology: every figure is quoted from Clear Money Guide’s statute-cited 51-jurisdiction datasets, compiled from state statutes, session laws and revenue-department publications and adversarially verified in July 2026. Nothing here is personalized tax or legal advice. Confirm your own facts with a qualified adviser before you move.