Chicago is a genuinely great city — architecture, food, neighborhoods, the lake. The people who leave aren't escaping something broken. They're escaping January. And February. And the property tax bill. And the $200B pension liability that Illinois is still figuring out. This guide gives you the honest numbers and the honest trade-offs.
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For the Chicago-to-Austin move, this section deserves to come first. The tax savings are real but moderate. The winter upgrade is immediate and total.
Austin summers are genuinely hot — June through September regularly hits 100–105°F, occasionally 108°F in August. This is real, and no honest guide skips it. Most Chicago transplants describe the trade as strongly favorable: a brutal, predictable heat season that's managed with air conditioning and Barton Springs Pool, in exchange for permanently eliminating the Midwest winter. The majority of people who've survived a Chicago February consider this an obvious trade.
Illinois has a 4.95% flat income tax with no deductions for retirement income — seniors pay the same rate as working professionals. Texas has zero. Additionally, Cook County property taxes run 2.5–3.2% of assessed value, among the highest in the nation. Austin's 1.8–2.4% rate is lower, and with no income tax layered on top, the total annual tax burden for most Chicago homeowners is significantly higher than Austin's.
Illinois carries over $200 billion in unfunded public pension liabilities — the largest pension debt relative to GDP of any U.S. state. The 2020 "Fair Tax" constitutional amendment (which would have enabled progressive income tax rates) failed at the ballot, but the underlying fiscal pressure remains. Multiple credit downgrades, ongoing structural deficits, and Illinois's track record of revenue-seeking make future income tax increases a genuine long-term risk. Texas has a constitutionally balanced budget requirement and no income tax to increase.
Chicago is a world-class city with a mature, established economy. Austin is one of the fastest-growing metro areas in the country, with a tech, finance, and life sciences ecosystem that has been expanding for a decade and shows no signs of peaking. For professionals in their 30s and 40s, Austin offers the combination of career opportunity, a growing employer base, and a city that is still early enough in its growth arc that early arrivals benefit.
Illinois taxes everyone at 4.95% — no brackets, no deductions for retirement income. Texas taxes nobody. The savings are real, and combined with lower property taxes, the annual gap is meaningful.
The 4.95% figure assumes Illinois doesn't raise rates. The state's $200B+ unfunded pension liability is the largest such burden relative to GDP of any U.S. state. Illinois has already issued pension obligation bonds, deferred payments, and cut services. The 2020 progressive tax amendment failed — but the pressure didn't disappear with it. Financial analysts who model IL's structural deficit frequently identify further income tax increases as the most likely long-term adjustment. Moving to Texas eliminates that risk permanently.
Illinois taxes all income at 4.95% with no brackets — the same rate applies to salary, self-employment income, capital gains, and retirement distributions (unlike most states, Illinois does not exempt pension or retirement income for working-age residents under 65). The property tax note: Cook County effective rates of 2.5–3.2% vs Austin's 1.8–2.4% add an additional annual advantage to the Austin side of the comparison.
Austin is smaller and less dense than Chicago — the neighborhoods are lower-rise, more car-dependent, and spread across a wider geography. But every major Chicago vibe has an Austin analog.
| Neighborhood | Buy Range | Monthly Rent |
|---|---|---|
| East Austin | $500K–$950K | $1,700–$2,800 |
| Bouldin Creek | $620K–$1.1M | $2,000–$3,200 |
| Travis Heights | $580K–$950K | $1,900–$3,000 |
| Barton Hills / Zilker | $650K–$1.3M | $2,200–$3,800 |
| Hyde Park / Rosedale | $520K–$900K | $1,800–$2,800 |
| Tarrytown / Clarksville | $750K–$2M | $2,500–$5,000 |
| Round Rock | $340K–$580K | $1,500–$2,200 |
| Cedar Park / Leander | $360K–$620K | $1,600–$2,400 |
Austin's central neighborhoods are priced comparably to Chicago's — Wicker Park, Lincoln Park, and Bucktown homes run $550K–$1.2M, which is in the same range as East Austin, Bouldin Creek, and Hyde Park. The Chicago-to-Austin move isn't primarily a housing cost arbitrage play. It's a tax and lifestyle play.
Where Austin wins clearly on housing is in the suburbs. Round Rock at $340K–$580K for a 4BR has no Chicago equivalent — Naperville or Downers Grove homes in that range don't exist anymore. For families targeting the Domain/NW Austin employer corridor (Apple, Amazon, Meta, Nvidia, Dell), the Austin suburbs offer Chicago-suburb quality at 60–70 cents on the dollar.
One meaningful difference: Austin's property tax (1.8%–2.4%) is lower than Cook County's (2.5%–3.2%). On a $650K home, that's a $4,000–$9,000/year difference. Combined with the income tax savings, the total annual carrying cost advantage of Austin over Chicago is larger than the headline income tax figure suggests.
Full Austin cost of living breakdown →Austin has become a genuine tech hub: Apple, Amazon, Meta, Nvidia, Dell, Oracle, Google, and dozens of growth-stage companies all have major Austin operations. For Chicago tech and finance professionals, the employer landscape in Austin is deep enough to support a career transition — not just a relocation with the same employer. Goldman Sachs and JPMorgan have Austin operations. Charles Schwab moved its HQ from San Francisco to Westlake, TX. The Austin finance sector is growing faster than Chicago's.
Illinois has no special remote work complexity — if you establish Texas domicile properly (Texas driver's license, vehicle registration, voter registration, spending majority of days in Texas), your Texas income is subject to Texas tax rates: zero. Illinois does not have California-style residency audits, but Illinois will still tax income earned during the portion of the year you were an Illinois resident. The move-year mechanics are straightforward: part-year IL return for your months in Chicago, then Texas residency for the remainder.
Illinois imposes a personal property replacement tax on partnerships, S-corps, and trusts of 1.5% on net income — on top of individual income tax. LLCs taxed as sole proprietors or partnerships pay IL income tax on business income at 4.95%. Texas imposes no franchise tax on businesses under $2.47M in revenue and no income tax on pass-through business income. For Chicago entrepreneurs running profitable consulting practices, agencies, or professional services firms, the Texas tax structure is a clean and permanent improvement.
Chicago families have navigated CPS selective enrollment, the Chicago private school circuit, or moved to the suburbs for school access. Austin's school landscape is different but recognizable — with one standout district that rivals anything in Chicagoland.
AISD is highly variable — research by campus address, not district average. The Hyde Park zone (Bryker Woods, Ridgetop Elementary, McCallum HS) and the Barton Hills / Travis Heights zone have well-regarded campuses. Think of it like CPS selective enrollment: the district average doesn't capture the strong individual campuses. Do the address-specific research.
The Chicagoland equivalent is Hinsdale Central or New Trier — elite public school results, highly involved families, strong college placement. Westlake HS is consistently Texas's top-ranked public high school. Homes run $900K–$2.5M+, comparable to the Naperville/Hinsdale premium. For Chicago families who moved to the suburbs for Hinsdale Central, Westlake Hills is the same trade in Austin — and the income tax savings partially offset the home price premium.
The Naperville / Downers Grove equivalent: strong, well-funded suburban districts with good sports programs, consistent college placement, and new construction housing. Homes run $360K–$620K — the closest Austin gets to true Chicagoland suburb value. Round Rock ISD in particular has a strong academic reputation and is a natural landing spot for Chicago families targeting Dell or Domain-area employers.
For Chicago families coming from Latin School, Francis Parker, or North Shore Country Day, Austin's private school options include St. Andrew's Episcopal School (K–12, nationally recognized) and St. Michael's Catholic Academy. Tuition runs $20,000–$35,000/year — below Chicago independent school rates — and the Illinois income tax savings ($7,400–$19,800/year) offset the cost meaningfully.
I help Chicago professionals make the Austin move — I know which neighborhoods match your Chicago vibe, how the Austin market compares to what you're used to, and how to move quickly on East Austin or Barton Hills homes before they're under contract.
My representation is free to buyers. If you're running the Chicago-to-Austin numbers, or within 60–90 days of a move, reach out now. Good homes in the neighborhoods Chicago transplants want move faster than most people expect.
Luke Allen · TREC #788149 · Austin, TX