Illinois to Texas is one of the most common 55+ relocations in the country. Here is the honest tax math, the property tax comparison (it is more complicated than you think), and what Illinois retirees find at Sun City Georgetown.
Illinois charges a flat 4.95% income tax rate. It exempts Social Security income and, importantly, it exempts most retirement income from qualifying pension plans — including Illinois Teacher's Retirement System, IMRF, SERS, and similar public pensions. If your retirement income comes primarily from a qualifying Illinois public pension plus Social Security, your Illinois income tax bill may already be near zero.
However, if you have 401(k) or IRA income, annuity income, part-time work income, rental income, or investment income, Illinois taxes all of it at 4.95%. Texas taxes none of it. The question is what percentage of your retirement income falls in the taxable bucket.
| Income Source | Illinois Tax | Texas Tax | Annual Savings Moving to TX |
|---|---|---|---|
| Social Security ($24,000) | Exempt | None | $0 |
| Illinois Public Pension ($36,000) | Exempt | None | $0 |
| IRA / 401(k) draw ($20,000) | $990 (4.95%) | None | $990 |
| Private pension ($15,000) | $743 | None | $743 |
| Investment income ($10,000) | $495 | None | $495 |
Example scenario — actual savings depend on your specific income sources. Illinois pension and SS exemptions apply to qualifying plans. Consult a CPA for your situation.
Here is where the Illinois comparison gets interesting. Illinois has some of the highest property taxes in the country. Cook County effective rates commonly run 1.5%–2.5% of home value — in some suburbs, higher. A home worth $400,000 in a Chicago suburb might carry a $7,000–$10,000 annual property tax bill.
A $400,000 Sun City Georgetown home for a 65+ owner who files all exemptions (homestead $140K + ISD over-65 $10K + Williamson County over-65 $125K, school tax frozen) carries an estimated tax bill of $3,200–$3,800 annually. That is a $3,000–$6,000 annual savings on property tax alone — without any income tax advantage needed.
For Illinois retirees who assume Texas property taxes are ruinously high (a common misperception), the reality in Williamson County with senior exemptions applied is strongly favorable compared to suburban Chicago rates.
Illinois is consistently one of Sun City Georgetown's top five feeder states. The community has robust Illinois networking — resident clubs, shared connections to Chicago, Bears/Cubs fans in the stands at the softball field. The culture is familiar without being parochial, and the combination of no state income tax and lower property taxes makes the move financially compelling even for retirees who modeled it carefully and expected Illinois to win on pensions.
Climate is the honest trade-off. Georgetown averages over 100 days above 90°F annually. Central Texas summers require planning — early morning outdoor activity, indoor amenities midday — in a way that Illinois summers (however hot) typically do not. Winters, by contrast, are dramatically milder: no snow removal, no risk of being housebound for weeks, and outdoor amenities usable 10–11 months of the year.
We connect Illinois retirees with local Georgetown agents who have helped dozens of Midwest buyers navigate the comparison, the move, and the 65+ exemption filing.
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